Re-Structuring, Rightsizing
Downsizing, & Smartsizing
CONTENTS
• Restructuring
• Rightsizing
• Downsizing
• Smart sizing
Restructuring
(for business sustainability)
What is restructuring?
Restructuring is a term used to describe
circumstances where companies decide to make
changes to business models, business
operations, structural organization or financial
spending.
On a smaller scale, restructuring can also occur
at the department level, where department
managers reorganize roles, priorities and
department budgets.
Restructuring
Restructuring is when a company makes
significant changes to its financial or
operational structure, typically while under
financial restriction/duress.
Companies may also restructure when
preparing for a sale, buyout, merger, change
in overall goals, or transfer of ownership.
Restructuring involves fundamental changes
in a business's activities and resources.
Benefits of Restructuring
Levels business with competitors
Enhances communication
Increases employee productivity
Maintains or improves company finances
Provides opportunities for business growth
Types of restructuring
Legal restructuring
Turnaround restructuring- replace product line
Cost restructuring- cost saving
Repositioning restructuring- expansion of business
by diversifying products
Spin-off restructuring- process by which a company
makes one or more branch locations
Divestment
Mergers and acquisitions
Maintain transparency throughout the process.
RIGHTSIZING
Employing & Maintaining exact number of employees with
required skills, abilities and knowledge to perform the existing
number of jobs in an organization
FACTORS RESULTED IN RIGHTSIZING
ARE:
Competition Information Technological Multiskills
Technology Innovation
NEED FOR
ToRIGHTSIZING
have exact number of employees as per the
job analysis,
job description and
job specification exercise of the company.
To reduce dysfunctional activities of employees.
To minimize the cost of human resources and to increase the
production cost by eliminating unnecessary costs.
To reduce maintenance activities of various employees,
facilities and benefits of various like housing canteen,
transportation, medical and recreation.
To maximize productivity by enhancing employee
performance.
To avoid formation of trade union and it’s consequences.
Benefits of Rightsizing
Downsizing
It means “to make (a companyor organization)
smaller by reducing staff or workplace resources.
Impact of Downsizing
Survivor’s Outcomes: Organisational
• Fear, insecurity and Outcomes:
uncertainty • Decrease in employee
• Frustration, morale
Downsizing resentment & • Reduced employee
anger motivation and risk
• Sadness, taking ability
depression & guilt • Decrease in
• Unfairness, organisational
betrayal & distrust productivity
Role of HR in Downsizing
Use of alternatives such as work-sharing, down-grading,
redeployment.
HR personnel must ensure proper communications to minimize
the negativity and should keep each individual informed with
factual data.
They should convince trade unions and win their support
for downsizing.
They need to deal with layoff employees uncertainties such as
service pay, retirement benefit, search for alternative job,
transition assistance etc.
Smartsizing
Maximize the production with the help of efficient utilization of
available resources using different alternatives which are
economically sound.
⚫ Minimum wastage
⚫ Reutilization of waste material
⚫ Reduction in operation cost,
⚫ Lack of innovation,
⚫ Reduction in maintenance cost,
⚫ Utilization of energy saving methods to reduce cost.
Cutting down on amenities and employee programs, such as
gym memberships, company cars, and cafeteria services.
Economizing the business can help reduce waste, while at the
same time potentially allowing the preservation of more jobs.
SABBATICAL (leave without pay)
• Extended leave of absence
granted to employees for renewal
purpose
• Offer 4 to 6 months service leaves
that allows manager and executives to
perform special service with nonprofit
organisations.
BENEFITS
COMPANIE INDIVIDUAL
S
Retain Valued Employees Self-Awareness
Attract Top Talent Replenished Energy
Increase Productivity Renewed Commitment
Develop High Potentials A Surge of Creativity
Revitalize Your Workforce The Ability to Inspire
Get Great Public Relations Increased Confidence
Q & A Session