Discuss the revamping of a specific companys organizational structure and the objectives of the reorganization……………..
Change is a never-ending and ongoing process of the lifecycle of an organization. Why revamp an organizational structure? The manager of Nestle Company argued that revamping is a sure way of building more consolidated services and backroom efficiencies. With the changes in technology and the introduction of web based businesses, nestle could not afford to be left behind. Stiff competition from other brands would mean that the company will be stifled out of the consumer market (Cummings 90). Another reason for revamping is that, accountability and transparency process will be enhanced since records will be formulated to detect “ghost workers” in the company.
What makes revamping of Nestlé’s organizational structure a major issue? Reports have indicated that Nestle Company is at the verge of downsizing, it is experiencing serious budget cuts, departments are constantly being reorganized and that there is a need for establishing a cross-training program for workers. Ideally, proper management of these ongoing processes would result into a more productive organization (Graetz 320). Who needs to be involved in this process of revamping? It is crucial that all members of Nestle are involved in this change process. Members include employees from the bottom, middle and top level, inclusive of Nestle clients. During this transitional time, programs that cover the goal setting, motivation and stress management is formulated to assist employees and the management. How are programs run and formulated? Views, ideas and opinions of each person are required so that the set programs run as intended. This can be done through questionnaires, interviews and other media aspects. What is the aim of revamping? Revamping at Nestle is a favorable way of making the company to be more responsive to the continuous competition in the global market and to be more flexible, adapting quickly to the industry’s competitive demands. What happens during this process of revamping? A timeline of 3 months is created that includes employee involvement, team creation to oversee changes, structured communication base and set objectives to minimize on change resistance if any (Cummings 95). During this period, the company creates new set of rules and regulations; and it also restructures its mission and vision statement. In addition, there is the formulation of a downsizing plan to build stability and loyalty for employees who remain. Why downsize workers? The company saw it crucial to recruit new workers so that there new talent, ideas and viewpoints are created.
What triggers reorganization? When nestle decides to make changes its strategic orientation, when growth intensifies in and outside of the company, when business units consolidate or separate, and when there are executive changes at the top management level. What are some of the reorganizational objectives of Nestle? To strengthen Nestlé’s regional identity and role, to enhance greater stakeholder and consumer orientation, to encourage effectiveness and efficiency through structural changes, to clearly state employees’ responsibility and value addition, to maintain excellence and skills in technical and managerial units within the company(Graetz 311).
Cummings, T. Organization development and change, 9th ed. Cincinnati, OH: South-Western College Publishing. International Journal of Systems Science, 1, 89–97.2008.Print.
Graetz, F.Organizing forms in change management: The role of structures, processes and boundaries in a longitudinal case analysis. Journal of Change Management, 5(3), 311–328.2005. Print.
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