Every business needs to be reorganized during its lifetime to change its internal structure to achieve higher efficiencies. Reorganization will usually be accompanied by major changes for managers, employees, shareholders, and anyone involved in the company’s business in general. There are several reasons for reorganization, the most important of which is improving business conditions and higher efficiencies.
Although the process of reorganization is necessary for businesses, it is difficult to properly manage this process. Not only does this have a direct impact on the survival of the company, but it also determines how employees work and survive, who are the company’s main driving force. In any case, it should not be forgotten that reorganization will always be accompanied by uncertainty, tension, anxiety, and possibly confusion among company members. Here are some important tips to help you better manage your reorganization and get the results you want.
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The first step in reorganizing a company : Identifying the group
Needless to say, reorganizing any business will have significant implications for employees. Especially people who have been with the company from the beginning will be more affected by these changes than others. These are people who have been with them at every stage of business development and growth, and it can be difficult for them to understand these changes. But the sense of uncertainty that employees feel is more important than anything else. They are unsure of their future position in the company and do not know what will happen next. Therefore, it is natural that these people do not welcome change and show resistance. The phenomenon, known as “status quo bias.” That is, people prefer to keep the current state and continue on the same path. This response from employees requires more effort to make changes and reorganize.
Your job as a manager or business owner is to persuade and engage employees with the changes ahead. At this stage, it is necessary to get to know the employees better and choose the right method to make them accompany with the company. Each member of the group may react differently to these changes. So you have to consider different methods for each person. For example, some employees may be satisfied with just a few explanations and reasons. While others need more time to properly understand recent events. So as a CEO, you need to be prepared for a variety of challenges.
Provide a realistic picture of these changes
The fact is that most of the life of each person is his job. So it would be very serious to make changes to where a person spends more than 40 hours a week. That’s why it’s important to explain the new rules, changes, and ultimately the expected outcome to them fully and clearly.
As we said, the main goal of reorganization is to achieve higher and better performance. So your perception of the outcome of change is definitely positive and promising. But you can’t expect everyone to have the same view to change and simply adapt to the changes that are being made. It is likely that some employees will be less productive after these changes and will need more time to find their place in the company. So expecting to see improvement in the company’s process immediately after the changes are not realistic.
In addition, employees will expect you to be sympathetic and supportive. So in addition to patience and tolerance for making changes, you need to show your empathy and cooperation with employees who have accepted your plan and are adapting to the new conditions of the company.
Try to make your expectations of the new structure clear so that everyone is aware of what you have in mind. Mutually, you need to give employees enough space to present their opinions and expectations.
Good communication with employees and their role in reorganizing the company
After reorganizing and changes in structure, it is necessary to redefine the relationship between individuals and different positions. For example, who exactly should report on the company’s performance or advertising should be handed over and who will be responsible for handling these cases. In addition, there may be issues or ambiguities in the new structure that need to be addressed. The sooner the bugs are fixed, the sooner the reorganization process will be completed and employees will be able to continue working.
Good communication with people plays a key role in these changes. When making changes, communication between people should be maintained and feedback should be obtained from people who are experiencing these changes so that the system can be reformed in the best possible way and achieve the highest possible efficiency. Effective communication with employees will lead to implementing changes, with less resistance and better adaptation. Perhaps the worst situation for a company is the dismissal of employees. Usually people in the company react in two ways. The person fired from the company is extremely dissatisfied and angry, while the rest of the company experiences guilt and insecurity. At this point, what has occupied their minds is probably the question of the next person or the next unpleasant event. So before doing so, have a plan to manage the reactions of both parties.
What is the ultimate goal of reorganization?
Don’t forget that the ultimate goal of reorganization is to achieve higher performance and improve the company’s position, not to get involved with side issues! Reorganization may be due to raising capital, buying, merging, or simply increasing efficiency, in each case the new structure will be different. However, in order to implement any plan or change, it is necessary to consider the reaction of the employees and have a plan to align them.
Due to its experience and knowledge in this field, Retiba can help the companies through their process of reorganizing. By trying to find answers to some important and key questions and obtaining company and employee information and records, we provide a realistic picture of the company that can be used to determine the right strategy for reorganization.