Timing Effects of Management Restructuring
Timing Effects of Management Restructuring
Management Restructuring Prior to Re-engineering
Advantages:
· Signals seriousness of effort
· Allows managers ultimately responsible for areas to perform redesign
· Demonstrates equity to employees as management gets cut first
Disadvantages:
· Forces new managers with now new, unfamiliar areas to make changes without adequate knowledge
· Heightens organizational tension through the process
· Overburdens new managers with requirements of new units and participation in the re-engineering process
Management Restructuring During Re-engineering
Advantages:
· Allows changes to be made promptly
Disadvantages:
· Disruptive to process when key individuals depart
· Heightens organizational tension
Management Restructuring After Re-engineering
Advantages:
· Organizational structure can be more optimally configured to re-engineering results
· Managers can be selected according to new skill set needs
· Allows for greater unit continuity through re-engineering process
Disadvantages:
· Managers may lack incentive to radically change orientation if high job uncertainty exists during the process
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