Significance of Redundancy and Restructuring

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The idea that renewal strategies, like redundancy and restructuring, are necessary to achieve organisational goals comes from a supply and demand analysis of the job market. Today’s working environment is seen to be excessively using these strategies in order to accomplish short term goals, resulting in businesses not looking towards their long term futures. This essay will address this issue by looking at the significance and implications redundancy and restructuring raise, that of reduced morale, satisfaction, motivation, and retention of the future workforce. It will also outline the many perspectives on the issue, that of a resource, industry and company based view, as well as display the veracity of these views. It will demonstrate that although redundancy and restructuring is a viable change method to achieve organisational goals, they should only be used as a last resort, due to the many significant costs it raises for businesses long-term success.

Many reasons exist for why businesses feel there is a need to change, ranging from mergers and acquisitions, technological advances, and economic and financial considerations (Business HR, 2011). This last point is particularly relevant in today’s environment due to the ongoing worldwide financial crisis. The fast paced and unstable environment that ensued led to a reduction in business profits and cash flows, leading some to believe their future growth plans were in danger. As a result, organisations felt the need to constantly adapt their workforce skills to the markets changing demands, and therefore adopt the view that change and renewal is an essential and natural response in order for growth and survival (Robbins & Muerji, 1994). However, the need to review an organisati...

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Greenberg, J., & Baron, R. (1993). Behaviour in organisations: Understanding and managing the human side of work (4th ed.). Boston: Allyn and Bacon.

Farjourn, M. (2001). Organizational restructuring: Perpetuating and constraining effects. The Academy of Management Review, 26(3), 351-353. Retrieved from http://www.jstor.org/stable/259180

Bolman, L., & Deal, T. (2008). Reframing organisations: artistry, choice, and leadership (4ed.). united States: Jossey-Bass

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