Analyses and evaluate how principles of restructuring and lean production enable an organization to compete within a marketplace on the basis of value. Give specific examples from the case and industry. Restructuring The development of a set of guiding principles is the first step in the organization structuring process – they define the parameters and desired attributes of a new organization. Creating organization structures requires a set of guiding principles that are consistent with the overarching direction of the organization, but are specific and relevant to the individual processes.
Align structure to strategy: All restructures must align to strategy. This may seem self-evident, yet a significant number of organizations fail to do so. For example, if local conditions are a predominant factor, then stress local sales and marketing functions rather than a centralized behemoth that then tries to matrix with local elements. Laid ensures that it trains the employees to ensure that they are well informed and work with the core principles in mind that is responsibility, consistency and simplicity. 2. Reduce complexity Simplicity is one of Lid’s core values it ensures that all complexity costs are done away with.
Whether it is a complex organizational structure, a complex product offering or complex transactional processes, the added cost of complexity can be a drag on performance. To mitigate complexity, there are three considerations that help with organizational design: l. Design structure for strategy before you design for specific personnel. Organizational redesigns which are a compromise between strategic intent and line management preferences inevitably add complexity. So, hill internal political intrigue is unavoidable, at least start with a clean and clear design that matches to strategy.
II. Avoid making leadership roles too complex. Ill. Minimize the use of matrices. They introduce measurement overhead and a lack of clear direction to the staff. 3. Focus on core activity: Remove noise (inefficiency in processes) and enhance core before restructuring roles. This means that you will need to know what people are doing today by obtaining a detailed understanding of tasks by role. This ensures that no value-added activities are thrown out when removing a role. Similarly, duplication ND redundant activity can be removed at the time of the restructure.
Laid specializes on only a few products as opposed to diversifying, this ensures that quality is attained. 4. Create feasible roles: Don’t overload roles – restructures generally leave an marketing mix By beautifully to reduce headcount, make sure you understand the current workload of employees. This will help to ensure you design roles that are neither too heavily laden nor indeed too light. Furthermore, role design must take into account realistic groupings of skills. Packing a role with too many distinct skill-sets reduces the pool of durable antedates. Laid has divided its Jobs into tasks and subtasks and employees allocated to each. . Balance ‘own work’ and ‘supervisory load’ of managers: The case of leadership or “management loading” can be particularly troublesome in restructures. Often, the inability of managers to focus on leadership tasks due to increased output requirements can create significant problems for an organization. For example, time spent mentoring and coaching staff drops off, staff become disengaged, more issues arise due to staff errors and managers end up spending more time resolving them. To ensure management are appropriately loaded, it’s critical to balance three elements: l.
The number of staff directly managed or supervised. II. Staff ability to perform work without supervision. Ill. The amount of ‘own work’ managers have to do on top of their leadership activity. 6. Implement with clarity: Often there is confusion in the first weeks and months after an initial restructure. After all, who is supposed to be responsible for what? The answer is to clarify roles and responsibilities from the beginning, identify all functions (activities, tasks and decisions) that have to be accomplished for effective operation, clarify who should be involved and be specific about accountability. . Maintain flexibility: Finally, it is important not to cut your resources too fine. If the organizational change is material, you will need resource flexibility in the first few months. So even as you strive to operate more efficiently, be sure to give yourself some wriggle room in your staffing. Flexibility applies not only to staff members, but to staff capability. Laid has a Job rotation system where the staff members are trained for different racks and they have affixed Rota for the tasks rotation. Leave yourself ND your leadership team some room to respond to capability gaps in the new structure.
Common ways to do this include: a staged transition so there are fewer capability gaps to manage at a point in time, and a temporary use of contract resources until in-house staff become familiar with their roles. 8. Be Smart. Get experts to help: Restructuring is both an art and a science. Make sure to enlist help from experienced restructuring specialists. From the financial and legal advisors to the claims and noticing agent, these specialists should have experience in managing and dealing with the complexities of the corporate structuring process. 9. Be Quick.
Time is of the essence: Recognized authorities in the restructuring industry can guide companies expeditiously in negotiating and consummating transactions. From pre-planning to emergence, companies can achieve their goals in 9. Be Prepared. Organize information efficiently: From the planning phase through execution, organization of company information is critical. All key information should be clearly accessible to help expedite the process and easily locate the required data. Data and other information needed during the process can include financial tenements, vendor listings, employee/retiree listings, contracts, real estate deeds, 10.
Be Transparent. Disclosure is good: Develop a strategic communications strategy to disclose forward progress to relevant constituencies during the restructuring process- from employees and vendors to financial institutions and the media. It is critical that you know what to say and how to say it, but it is also vital to recognize the strategic relevance of your communications. Laid is transparent to the customers by ensuring that what they save through lean production is passed on to them and this is done through an clear cut system of avian $1 when you package your shopping. 2. Be Sensitive. Take stakeholders’ financial insecurities into consideration. When dealing with financial matters of this scale, emotions run rampant. Be sensitive to the needs of stakeholders and provide reassurance that their matter is one of significance and is being addressed during the process. Laid insists that it gets the customer involved by producing according to their demand, the public by social responsibility and the suppliers through Just in time system of ordering.
Structuring Principles-Examples Move decision-making as close to the point of customer contact as possible and apply supporting state-of-the-art technologies – Ensure that customer/client feedback opportunities are maximized and easily accommodated – This will be supported through the design of service and performance measures into each process Restructuring elements: There are several “principle prerequisites” or elements that must be clearly defined prior to identifying relevant organization structuring principles: l.
Clarity of Mandate: The objectives, activities and outputs of an organization component must be clearly defined and must be differentiated from all others within the department/branch/section. The activities and outputs of the organization should be easily linked to the stated organization objectives. Laid has done this through highlighting their core values which are simplicity, consistency and responsible. II.
Unity of Purpose: Ensure that all organization components within the larger organization work towards common goals and that all work performed must relate to the larger departmental mission/bob]actives. Laid employees are constantly under training to ensure that they keep the goals and objectives of the company in sight as organization relate to one another, where interdependencies exist, and how the organization interfaces with internal stakeholders (other departments, across branches, etc. And external stakeholders (customers, suppliers, general public etc. ). Laid has divided the Job into small tasks and each staff member allocated a role which is clearly defined they are answerable to some manager this ensures good internal relationship. Laid also has a close relationship with the suppliers in a bid to ensure Total Quality Management. They enhance a good relationship with the public through corporate social responsibility and with the customers through putting their needs first.