Human Resource Transformation (HRT) aims at maximizing the competence and efficiency of human resource models and functions. This presentation talks about what is Organizational Restructuring and how it influences the growth of a firm, some examples of Org restructuring happened in past.

1. Oganizational
Restructuring

2. Introduction
 Change is inevitable for a company’s growth.
 Human Resource Transformation (HRT) aims at maximizing
the competence and efficiency of human resource models
and functions.

3. Literature review
The Twenty-First-Century HR Organization by Dave Ulrich, Jon Younger & Wayne Brockbank
The Practice of Organizational Restructuring: From Design to Reality by Julia Balogun
Building Sustainable Organizations through Restructuring: Role of Organizational Character
in France and India by Ashok Som
The Top Best Practices for the High-Impact HR Organization by Stacey Harris
The Strategic Objectives for Restructuring HR and Significance of Strategic Role for Future
Leaders by Ali Muslim Bin Aqeel, Aamna Shakeel and Ali Naseer Awan

4. Nissan Corp. Ltd. Successful Organisational Management Change by Abdel Razzaq A.
AbuShahout
HR Transformation in India: A case for Business Driven HR
Nokia - Restructuring A Giant by Amit Gupta, Ankit Agarwal, Swati Jain, Amit Mantri, Vibhu Manya &
Ashish Sahay
Reorganization, Restructuring or Downsizing? by Caela Farren & Tom Karl
Corporate Restructuring in India with Special Reference to Reliance Industries Limited (RIL) by Santhosh
Kumar A.V. & Dinesh N
Building the Future: HR’s Role in Organizational Design by Steve Weingarden

5. Research
Methodology
Project Objective
• To know what is
organizational
restructuring.
• To find out the ways in
which an organization can
be restructured.
• To understand the
background of various
companies who have
restructured their

7. Famework of Organization Restrucruing
Reorganisation of
assets.
• Acquisitions
• Sell-offs or
divestitures
Creating new
ownership
relationships.
• Spin-offs
• Split-ups
• Equity carve-outs
Reorganising financial
claims.
• Exchange offers
• Dual-class
recapitalisations
• Bankruptcy
• Financial
reorganisation
Corporate
Strategies.
• Joint ventures
• ESOPs
• Going-private
transactions
• Using
international
markets

8. Causes of Organizational Restructuring
Changing Strategy
• Companies reorganize structure to
accommodate the market shifts.
• Some companies create new divisions
to facilitate new products or product
lines.
• Some companies trim production staff
due to surplus production
Changing Structural Types
• Companies often rearrange business
structure to follow a new business
model.
• Some companies shift organizational
structure to a regional model to
assign local managers.
• Some companies create a matrix grid
to place the key managers over

9. Causes of Organizational Restructuring
(contd.)
Downsizing
• Companies commonly downsize to remain
functional during a loss of revenue.
• Most companies will close departments, drop
product lines, lay off managers and sell
facilities to keep a company afloat.
• Some companies reorganize business
structure to meet the needs of the new
organization at its smaller size.
Expanding
• Corporate expansion demands the creation
of new departments to accommodate new
products or new facilities.
• For any expansion companies has to
rearrange business structure to include the
new staff.
• Companies often make changes in the basic
organizational structure for any expansion.

10. Methods of Restructuring
Joint Ventures Mergers and Amalgamations
Horizontal Mergers Vertical Mergers Conglomerates

11. Acquisitions
Management Buyouts Takeovers
Strategic Alliance

12. Case Studies

13. March 2000 - Coca-Cola
received news about
misconducts in its North
India operations.
July 2000 - Arthur
Anderson appointed to
inspect the matter.
Findings - North Indian
team violated
discounting terms +
credit policy + unfair
cash dealings
Solution - Coca-Cola did
Performance Appraisal
for 560 managers,
leading to a mass
resignation.
July - Nov, 2000 - 40+
managers resigned + few
employees were sacked
by Coca-Cola
January 2001 - 12% of
management or 70
managers left/removed
 Problem  Solution
Von Bohr(CEO) took steps to
ensure smooth relationship with
new people in the company 
Bohr individually met finance head
in every territory and made clear
the company’s policy to them
Coca-Cola made uniform
discounting limits and best practices
Launched a major IT initiative - to
make the entire organization’s
functioning transparent

14. Nokia-Microsoft Alliance
Strategic
Alliance
Renault – Nissan’s Alliance
Strategic
Alliance

15. Reliance Empire Split - Demerger
Reliance Industries
Reliance Petroleum
Reliance Solar
Reliance Logistics
Reliance Industrial Infrastructure
Reliance Institute of Life Sciences
Relicord
Reliance Anil Dhirubhai Ambani
Group
Reliance Communications
Reliance Capital
Reliance Power
Reliance Infrastructure
Reliance BIG Entertainment
Reliance Health
Reliance Insurance

16. Findings
 In Organizational restructuring, the organization makes changes in the personnel
department, the way the organization works, the organization structure and all other related
fields.
 Organization Restructuring is a complex matter with create or break consequences for
organisations. The benefits of restructuring are cost reduction, helping in forming more
effective structures, efficient processing and involved staff.
 There are various methods of organizational restructuring like Joint venture, Mergers,
Acquisition, Strategic alliance, Demerger, etc. that helps the organizations in enhancing their
performance.
 From the cases included in the study, it can be clearly seen that many companies that have
used different types of restructuring methods to improve their performance, increase their
profitability, or become industry leader.

17. Conclusion
 Organization restructuring is the process of redesigning one or more
aspects of a company.
 Restructuring a corporate entity is often a necessity when the company
has grown to the point that the original structure can no longer
efficiently manage the output and general interests of the company.
 Companies like Tata, Coca-Cola, Nokia, Yamaha, Reliace, Harley-
Davidson, Dabur and many more have restructured their business in
order to gain a competitive advantage over others.

18. Thank You 