In Tuition 03/06/2016 STAFF RESTRUCTURING…..the WHY and the HOW?

Inevitably there will need to be changes within an organisation. This may be as a result of the sale or purchase of a business, change in the marketplace or product, financial changes including an increase or decrease in funding or changes in technology.

All these changes may mean a review of the number of staff needed, the skills needed or the function of the current positions. There are four phases to follow should these changes require a reduction in staff.

1. Plan
2. Propose
3. Consult
4. Implement

Once you have a Plan you can Propose this to your staff. You should Consult your staff and if there are no significant changes to the Plan you can then Implement.

If may be that the Propose and Consult phases need to be repeated if feedback through the consultation phase changes the Plan.

Staff can react quite differently to each other so be aware of, and plan for, some of the following changes:

  • A drop in productivity as a result of poor sleep quality and increased stress;
  • A reduction in commitment as a result of loss of confidence, decrease in job security and decrease in attachment to the organisation;
  • An impact on job satisfaction and motivation;
    Increased feelings of helplessness and loss of control;
  • Higher intentions to resign or even resignations; and
    Negative perception in terms of honesty and trustworthiness of the organisation.

Being aware of these, planning for and having support throughout this process aids in a successful restructure.
Here are eight key points to remember:

  1. Align structure to business strategy;
  2. Assess what you have before you decide what you want;
  3. Don’t create roles for individuals;
  4. Functions within the new structure roles should be achievable;
  5. Look for process and productivity efficiencies whilst developing structure;
  6. Don’t overload manager/leaders – ensure there is time to complete both the tasks of the role and the leadership requirements of the role;
  7. Implement the structure with clarity – role and function confusion can be detrimental to the new structure’s success; and
  8. Ensure there is room to adjust – a good plan may not always cater to all impacts.

Change is inevitable so be prepared and follow a good process.

OurHR can contribute to and support you, as a business owner, through each and every one of these phases. If you would like to discuss your specific needs, please do contact me on melanie@nullourhr.co.nz or 027 677 0129.

Contact me now and book a 30 minute free confidential consultation.