Reorganisations, restructures and other major changes

Managing people

One of the most difficult aspects of organisational change is getting employees committed to the changes you are planning.

Many people are inherently cynical about organisation-wide change because such programmes often go against the very values that employees hold dear - that is, the way they believe things should be done. Often, they feel their position is threatened.

Research shows that reorganisations that involve the employees are more successful than those that exclude them. If you have a human resources professional, get them involved from the start in consulting employees. Ask staff for feedback and suggestions at the initial stage of designing the reorganisation.

When the organisational restructuring dramatically changes employees' roles, providing a new job description can help them understand what they are now expected to do, how they are expected to do it and who they should report to. This is particularly important for businesses that are graduating from a start-up phase - when all employees are required to help wherever needed and often perform more than one function.

There may be a need for retraining if you expect employees to use new technology, operate new machinery or perform different roles. Ensure that the right people have the right training at the right time. A training needs analysis will help you plan this. See our guide on how to fit the training to your needs for information about analysing training needs.

Keeping employees involved in these ways may help prevent falling productivity by clearing up any confusion and making sure each staff member knows what is expected of them.

If your business has more than 150 employees, you also need to comply with the Information and Consultation of Employees (ICE) Regulations, which came into force in April 2005. From April 2008, these regulations, which give employees rights to be consulted and informed about organisational changes, will affect all businesses with more than 50 employees.

Subjects covered in this guide

• Introduction
• Reasons for changing the way your business is organised
• Different business structures: by function and area
• Different business structures: by product and project
• The importance of planning and communication
• Managing people
• Implementing change
• Systems for delivering change
• Financial considerations
• Special considerations for change
• Here's how I changed my management style as my business grew

 

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