Putting the restructuring process of a company into practice

Dissertation / Doktorarbeit von Sven Dinklage

Abstract:

Companies in today's business world are under a constant pressure: they have to get as close as possible to the customer, they have to become ever more flexible and they need to reduce costs.

In order to face these challenges, some organisational structures are more likely to promise success than others. The characteristics of these structures are no secret, but companies often have the problem that they don't know how to put them into practice.

The present work is intended to give an answer to this question.

Having analysed what had been written about putting organisational change into practice 1 tested my ideas by a series of ten interviews which took place in companies of the German production sector. Six points were identified as essential:

1. The problem and the objectives of the project should be clear for all participants.

2. The company should dispose of enough time and financial resources as well as a trusting working climate and a supportive top and middle management.

3. Borderless communication is necessary, especially concerning the evolution of the change project and the personal consequences for each person.

4. The employees should be able to participate actively in elaborating the change project, in decision-making and in identifying possibilities to stimulate motivation. This participation should be reflected in an adequate bonus system.

5. Continuous training for all (laying special attention an group leaders) is important an such areas as group work, communication and motivation.

The mentioned recommendations could be useful for the managers of companies which are thinking about a reorganisation. That would enable them to avoid mistakes made by other companies.

The following mistakes were the most important ones:

Impatience and the expectation that there will be a 'magic solution' (it might take up to five years to reach the desired state).

The non-implication of the workforce in introducing the change process (result: the project is being blocked from their side).

Lack of communication which creates rumours about the coming change process (result: anxiety is created and the best workers will try to find another job).

Out of date bonuses which are not favourable in order to reach the company's global objectives (such as individual bonuses and 'competition stimulators' between groups).

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