Outplacement Word Cloud Concept
10 Traits of the Best Outplacement Services
October 2, 2019

How to manage a reorganization from HR perspective

Restructuring Min

Restructuring Min

As a company grows or undergoes changes to remain competitive, the chances it will reorganize or restructure in some way is likely. However, a reorganization can be challenging, and in many cases, unsuccessfulAccording to research conducted by McKinsey & Company, only 23 percent of corporate reorganizations are deemed successful by the companies undertaking them. Since reorganizations can raise some of the same issues as layoffs (or may result in layoffs),  you have to do the right steps in order to get the results you are aiming for.

Here’s our structured guideline on how to tackle it:

  • Define the problem.
  • Determine whether existing jobs and structures are meeting department goals.
  • Consider what factors contribute to effectiveness of jobs and structure.
  • Identify methods for collecting input from staff.
    • Verbal, written, and computer surveys
    • Problem-solving teams
    • Review committees
  • Identify a new structure or model that will support your goals, including:
    • Distribution of functions throughout the organization (definition of functions to be performed, groupings of functions, and the relationships among functions)
    • Vertical and horizontal authority relationships
    • Communication/decision-making process (how formal decisions are made and by whom, and the information system established for decision-making)
    • Internal departmental policies (the decisions, rules, or guidelines established in production, personnel, purchasing, research and development, and other areas)
    • The attributes of department employees (includes abilities, skills, experience, and other behavioral issues)
  • Develop a reorganization proposal, including:
    • Timeframe
    • Reasons for reorganization
    • Before and after organization charts
    • Job descriptions for new, changed positions
    • Names, titles of employees to be affected by changed or eliminated jobs, new reporting lines, physical relocation, or reduction in time
    • Review of Affirmative Action impact
    • Order of potential layoffs for career positions based on seniority points
    • Notices to go to unions
    • A communication plan
      • Identify the different groups who will need communication and the different messages/information they will need
      • Determine series of review and update meetings with management
      • Determine schedule of informational meetings with staff
      • Plan communications outside department to announce reorganization
      • Set up individual meetings with employees projected for layoff and for those employees whose jobs will change significantly
  • Determine skills needed for each position.
  • Compare current skills with what is needed.
  • Determine training needs and resources.
  • Design and implement training.
  • Review, reassess, and gather input during implementation.
  • Determine methods to get feedback during implementation.
  • Include systems that will provide regular feedback from management, staff, and client groups.
  • Clarify mission, goals, and standards for success.
  • Schedule regular staff meetings.
  • Facilitate communication by remaining open to suggestions and concerns.
  • Act as harmonizing influence by looking for opportunities to mediate and resolve minor disputes.
  • Encourage all team members to share information.
  • Support brainstorming and consensus decision-making where appropriate.


At, Green Umbrella HR we know how to navigate through the hardships of situations such as these and we’re more than happy to provide counsel to you and your team.



External links:


Comments are closed.