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Paper Topic:

Organizational Restructuring Plan, A Case Study on Altuwairqi Holding Company in Saudi Arabia

Organizational Restructuring Plan , A Case Study on Altuwairqi Holding Company in Saudi Arabia

1 .0 Introduction

Today 's environment is beginning to threaten today 's organizations finding them seriously deficient in their nervous system design . The degree of coordination , perception , rational adaptation , etc , which will appear in the next generation of human organizations will drive our present organizational forms , with their clumsy nervous systems , into extinction " -Douglas Engelbart , 1970

The observation that the American inventors , Douglas Engelbart , made in 1970 may shed some light on the cycle of restructuring that

most companies find themselves . In the many years that I have worked in companies , big and small , change has meant one thing for most of the time

How many of the companies have been in these situations ? For many of them who have been long enough with the same company , know that new management seem to feel like they need to make their mark ' by changing people around and restructuring the organization . Who has heard or repeated the comments "Here it comes again " or "Shifting the deck chairs on the Titanic again

In industrial design , experts know that "form follows function business schools teach "structure follow strategy . So why is it that some companies tend to be in a never ending cycle of restructuring ? Is strategy changing that much ? Are the fundamentals of the business changing so much that you need to change the organizational structure

The top reasons why organizations change

Innovations in product , technology , materials , work processes organizational structure , and organizational culture

New and shifting markets

Actions of global competitors , work force values , demands , and diversity

Regulatory and ethical constraints from the environment

Individual development and transition

These are all solid reasons for change . However , organizational restructuring in these situations should only follow after the Business Strategy has been changed - for the very same reasons . Very seldom , an Organizational Change process does enough due diligence around the strategy of change . Such a due diligence process is proposed below

Getting to effective Organizational Restructuring

Assess the impact of internal and external factors causing change on the business strategy

Commit to a new business strategy to address the changes in market technology , regulations , etc

Assess as-is business processes to determine the impact of change on the organization . This will include the impact of process changes on existing roles . This will define the `gaps ' in existing roles which will make any structural changes effective

Design / align roles to support the changes in the business

Develop and execute an organizational change management plan to address and define the drivers of any structural change , as well as the impact on the business of the change options

Define performance metrics . Measure before and after the change to ensure that the change is effective

Understand the cost of organizational change

1 .1 Background of the Study

Paul Hirsch , a professor in the Management and Organizations Department of the Kellogg School of Management , and Michaela De Soucey , a doctoral student in Northwestern 's Department of Sociology...

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