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