Summary I. INTRODUCTION ........................................................... .................................3 II. HRM RESTRUCTURING....................................................... ............................4 1. Restructuring definition ............................................... ...............................4 2. Restructuring objectives................................................ ..............................

5 a. Unloading Unprofitable Businesses....................................... ..................5 b. Eradicating Debt........................................................ .........................5 c. Responding to Changing Trends........................................... ................5 d. Meeting Regulatory Change............................................... ..................6 3. How Restructuring....................................................... ...............................7 III. ...8 IMPACT OF RESTRUCTURING ON CURRENT WORKFORCE............................

IV. ACTION PLAN ............................................................ ................................9 a. The Company Diagnostic.................................................. ....................10 b. The Restructuring Plan.................................................. .......................11 c. Implementation.......................................................... .......................12 V. CONCLUSION ............................................................. ................................13 VI. REFERENCES.............................................................. ..................................14

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INTRODUCTION

As organizations struggle to enhance their competitive positions, employment dow nsizing continues as a preferred part of a restructuring strategy. Its objective is to reduce operating costs as a way of increasing earnings and stock prices. The purpose of this article is to suggest several alternative approaches to rest ructuring. In contrast to employment downsizing, a strategy that regards people as costs to be cut, a responsible restructuring strategy focuses on people as as sets to be developed. This focus recognizes that people are the source of innova tion and renewal, especially in knowledge-based organizations, and that the deve lopment of markets, customers, and revenue streams depends on the wise use of a firms human assets. We will response for three main questions, what a human resource is restructurin g, what is its objectives and haw we will precede? In the second part will be examine the impact of restructuring on current workfo rce and close trying to draw a way which our company has to be tacked to success the restructuring.

IIHRM RESTRUCTURING 1. HRM Restructuring definition Organizations are human systems and their system structure includes the worldvie w, beliefs, and mental models of their leaders and members. Changing organizati onal behavior requires changing the belief system of its personnel. This proces s of changing beliefs is called learning. Effective learning requires clear, op en communications throughout the organization. Organizational performance ultimately rests on human behavior and improving perf ormance requires changing behavior. Therefore organizational restructuring shou ld have as a fundamental goal the facilitation of clear, open communication that can enable organizational learning and clarify accountability for results. Since the world is continually changing, continuous organizational learning is n ecessary to stay up to date. Organizations that cannot or will not learn will b ecome obsolete. Leaders should periodically examine the organizational structur e of their enterprise to assure that it continues to provide an environment for organizational learning. A non threatening, development focused performance app raisal process can be an effective organizational learning tool. The points of leverage in organizations are the beliefs and worldview of their l eaders and decision makers. The sense of purpose, vision and commitment of an o rganization s leadership play a critical role in the results it can accomplish. We list below some of the critical symptoms indicating the need for organizational restructuring. New skills and capabilities are needed to meet current or expected operational r equirements. Accountability for results are not clearly communicated and measurable resulting in subjective and biased performance appraisals. Parts of the organization are significantly over or under staffed. Organizational communications are inconsistent, fragmented, and inefficient.

 Technology and/or innovation are creating changes in workflow and production pro cesses. Significant staffing increases or decreases are contemplated. Personnel retention and turnover is a significant problem. Workforce productivity is stagnant or deteriorating. Morale is deteriorating. 2. HRM Restructuring objectives Human restructuring was a much rarer occurrence than it is today. With technolog y, communications and global networking evolving so rapidly, corporations must r estructure almost on an ongoing basis to keep up with the change. Some of the ob jectives of these restructuring efforts include erasing debt, evolving with tren ds and responding to regulatory changes in various industries. aUnloading Unprofitable Businesses Some corporations have branches or businesses they own that are producing margin al profit or even losing money. They may have purchased the company when it was doing well but trends shifted, or perhaps it was part of another merger in which they acquired the weak business along with a strong one. Whatever the reason, t hese parts of the business tend to be a drain on the corporate profits and corpo rate resources. Corporations may restructure in order to put their best resource s into the parts of the business that make money and sell off or liquidate parts that don t. bEradicating Debt Many corporations have debts that threaten the viability of the business because the stock fell, the price of materials rose or consumer demand faltered. These corporations must restructure in order to pay the debts. This often includes emp loyee layoffs, the selling of assets and a reduction in benefits for employees w ho remain. The objective of this kind of corporate restructuring is to rope the debt to equity ratio back to a number where the corporation can survive. cResponding to Changing Trends Frequently a corporation s business model is based on a trend that has changed. For example, a construction company may have to alter its business model to crea ting or retrofitting buildings according to LEED standards. Likewise, a company whose business centered on telephones and faxes has to face the change in how th e world communicates. These changes often require corporate restructuring, selli ng old assets to buy new and putting people who understand the new trends and te chnologies over those who have worked their way up in the old system. dMeeting Regulatory Change Regulatory changes create a need for corporate restructuring. The deregulation o f the banking industry, for example, meant banks could suddenly sell products su ch as insurance and could operate across state lines. This required a restructur ing along with many mergers and acquisitions. Regulatory changes resulting from the financial crisis of 2009 are leading to other corporations restructuring th eir businesses, particularly in financial services such banks, mortgage companie s and credit cards. 3. How Restructuring Organization Implementations are dynamic systems and, like all other systems, the y do not function when their components do not work together smoothly and effici ently. Any change we introduce to an organization must be aligned with an ever-c hanging, dynamic and culturally diverse workplace. Understanding the relationshi p between organization restructuring and its employees is the key to improving y our organizations ability to move through change effectively. Organization restructuring often means making critical decisions about how to de ploy or re-deploy talent. Organizations need insight into where to best utilize talent and find the best fit between existing employees and the jobs that await them. Organization restructuring can help the company gain insight about job fit and h ow best to alight talent with business needs to deliver the highest level of per formance. Knowing the goals and objectives of each individual in your organizat ion can be difficult. Solutions can provide us with the means to easily align th e goals of our employees to the overall mission of our company. Analysis will he

lp us develop an effective solution for organization restructuring by assessing our workforce and their alignment the following organization issues: Overall mission, vision and strategy Current and future business culture Customer strategies Employee strategies Functional practices and systems Senior management Performance measurement and management systems In addition to managing talent, organizations need to be able to handle conflict . Organization restructuring brings about change that brings about stress and c onflict. Its important for managers to be able to effectively lead their team th rough challenging and turbulent times. Being able to predict how each employee will respond to stress and conflict is the key to managing change smoothly. If you arent sure about what organizational restructuring management and analysis can do for your company, consider the following questions: Would you like to create a benchmark for measuring progress in organizational de velopment activities? Do your managers and employees have a misaligned interpretation of the vision, m ission and values that are important to the success of your organization? Do you have a system to measure/quantify management effectiveness? Are your internal management practices in alignment with achievement of organiza tional goals or is there a negative correlation? Do the skills of your supervisors contribute to a negative impact on performance for your company? Does your organization continually settle for low productivity from some manager s that creates a negative profit impact? If you ve answered yes to any of these questions, organizational restructuring s olutions can help. With an overview of your managers strengths and areas for imp rovement, you can plan organizational goals with clarity and certainty. You can then take it a step further by verifying managers alignment with the organizations vision, mission, purpose, and strategic goals. Measuring organization alignmen t is one of the most powerful mechanisms for improving productivity, communicati on, and efficiency across your entire business.

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The restructuring of Human Resources is difficult as it always include the chang es in the job profiles of HR employees and it includes the changes in the organi zational structure of Human Resources and it affects the way, how employees do t he job /sometimes for years/. The whole company watchs the restructuring of HR as all employees are sensitive to changes in Human Resources. They can expect changes to come to their conditio ns. HR always sets the main principles how the employees are evaluated in the co mpany and changing HR will definitely lead to changes in other functions. Human Resources should act as the role model for the change management in the co mpany. The change management and restructuring are always about the people and w ho should understand to the people more than HR Professionals? It is the common view, but the people in HR are usually pretty weak in Project Management. When planning the restructuring of HR, it is always important to find the strong project managers, who will be able to minimize the damages caused by the consta nt and quick changes in the HR Processes and HR Procedures. The strong project m anagers are able to manage and drive the process side of the HR Restructuring an d the HR Managers are able to lead and manage the people aspect of the HR Restru

IMPACT OF RESTRUCTURING ON CURRENT WORKFORCE.

cturing. The restructuring of Human Resources is not simple, but it can bring huge benefi ts and to introduce the competitive Human Resources to the organization. The ben efits of the restructuring are higher, than the costs paid during the restructur ing process.