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Strategic Restructuring and Organizational Developments

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Strategic Restructuring and Organizational Developments
Strategic Restructuring and Organizational Developments

Introduction

This discussion is directed toward company restructuring and repositioning, specifically my personal experiences in a project dependant industry, and the evolution of a business structure and organizational culture of flexibility and adaptability. Many companies operating in a project specific and contract dependant industry are required to align employees with processes and strategies to ensure smooth transition in an often dynamic and changeable environment. Companies competing in dynamic market environments have evolved and adapted to stay competitive and profitable. It is important to recognize the alignment of company culture toward the employee and the strategic role HRM has in the planning and preparation when restructure process is under-taken. The topics and reflections in discussion, although often specific to experiences in the contract and project environment, are also transferable across other industries.

The Motives for Restructuring

In essence the market environment is what drives changes in organizational strategy and structure. The new economic environment of increased competition and instability has moved organizations toward more responsive business structures. The Petroleum Industry is classic case of economic and market forces which have historically created cycles of high growth and recessional lows. Companies competing in the petroleum industry have evolved and adapted, in a strategic capacity, to stay competitive and profitable (Cibin and Grant, 290).

Organizational change can be said to encompass structural change or strategic change (Lines 2005, 10). Structural change, as defined by Lines, encompasses the merger of two companies, creation of new departments, and delayering or downsizing of an organization. Also restructuring can be strategic, which tends to involve changes in market domain resulting in changes of structure systems and processes. An example



References: Bendell, Tony. 2005. Structuring Business Process Improvement Methodologies. Total Quality Management & Business Excellence 16 (8/9): 969-978. Bowen, H. Kent, and Steven Spear. 1999. Decoding the DNA of the Toyota Production System. Harvard Business Review 77 (5): 96-106. Cibin, Renato and Robert M. Grant. 1996. Restructuring Among the World 's Leading Oil Companies, 1980-92. British Journal of Management 7 (4): 283-307. Crager, Bruce. 2007. Meeting technical, personnel challenges in the oil and gas industry. Offshore. Tulsa. 67 (1): 92. Gaertner, K. N. 1989. Winning and Losing: Understanding Managers ' Reactions to Strategic Change. Human Relations 42 (6): 527-545. Hirsch, Paul, and Russ Roberts. 2005. Evolution and Revolution in the Twenty-First Century: Rules for Organizations and Managing Human Resources. Human Resource Management 44 (2): 171-176. Korsgaard, M. A., David M. Schweiger, Harry J. Sapienza. 1995. Building Commitment, Attachment, and Trust in Strategic Decision-Making Teams: The Role of Procedural Justice. Academy of Management Journal 38 (1): 60-84. Leonard, Dorothy and Walter Swap. 2004. Deep Smarts. Harvard Business Review 82 (9): 88-97. Lines, Rune. 2004. Influence of participation in strategic change: resistance, organizational commitment and change goal achievement. Journal of Change Management 4 (3): 193-215. Lines, Rune. 2005. The Structure and Function of Attitudes Toward Organizational Change. Human Resource Development Review. Thousand Oaks. 4 (1): 8-32. McCarthy, Bill. 2004. The Two Dimensions of Organizational Change. Strategic HR Review. Chicago. 4 (1): 20-23. Smith, H. Wayne. 1988. Rebuilding Morale in a Battered Industry: Applying a Recovery Strategy in Oil and Gas. Human Resource Planning 11 (4): 271-281. Soderlund, Jonas, and Karin Bredin. 2006. HRM in project-intensive firms: Changes and challenges. Human Resource Management 45 (2): 249-265. van Wyngaarden, R. a. S. O. 2006. A Changing Role for Consultants and Staff in Midstream Sector. Pipeline & Gas Journal 233 (9): 46-48.

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