Disadvantages Of Reorganization

Reorganization, in a business context, is an overhaul of a company 's internal structure.

Companies go through reorganization for various reasons. Purposes include improving efficiency, cutting costs, repositioning the business, and dealing with corporate changes such as mergers and acquisitions. The restructuring may involve changes to departments, business units and employee roles, and often includes significant layoffs.

Changes to the organizational structure are often made to focus effort on a business ' core competencies and to minimize the use of resources elsewhere. A company may sell off or otherwise exit unprofitable business units, or outsource work to areas with cheaper labor.

On the other hand, reorganization can divide in

The changing nature of economy may force the business to adopt new strategies or alter their product mix, making staff redundant.

In such situations, the organization will need to redo job descriptions, rework its team, group, and communication structures and reporting relationships to ensure that the remaining workforce does the job well. Very often, downsizing-induced restructuring leads to a flatter organizational structure, and broader job descriptions and duties.

3. New Management Methods

Traditional management science recommends highly centralized operations, and the top management adopting a command and control style. The new behavioral approach to management considers human resources a key driver of strategic advantage, and focuses on empowering the workforce and providing considerate leeway to line managers in conducting day-to-day operations.

Traditional management structures were bureaucratic and hierarchical. Job flexibility, enlargement and enrichment are key features of such new structures, but successful implementation requires changes in the communication and reporting structures of the organization.

4. Quality

Questionnaires can be used for descriptive or explanatory research. It helps to identify and describe the variability in different occurrences. In this report I have used the questionnaire method to survey the respondents because this is more of a qualitative research and there will be many open ended questions in the questionnaire for the better understanding of how the respondents define each questions.

Secondary data:

The other secondary data is collected from various sources such as, journals, books, publications and online articles for constructing the literature review and setting the objectives of the study on the context of those data. Previously some research work has been done on relative topics. In the literature review and analysis I have considered some journals and research conducted on reorganization on SME in different countries.