Knowledge - Special subject

Restructuring enterprise within the framework

Restructuring is still a fashionable word in today's business managers. As enterprise face a situation which landmark, people shouting restructuring. When dissatisfied with the existing state of the business, people shouted "restructuring". The boss when needed “intimidate” soldier also told that will restructure, with the implication that if you're not trying he will give you a way out.

Nevertheless, restructuring is also a real need. Enterprises today are struggling with numerous problems may similes like the image of a boy growing up in a shirt too tight. Must be stirred to exit then you can grow, and also because the breath of the WTO and a new wave of competition is coming.

However, understand and think about the words of restructuring are still many differences. If the difference was only enrich our thinking alone is okay, but the irony is that these differences could lead to the very opposite results. Hence, the need to analyze carefully.

The most common interpretation is still homogeneous restructured with rearranging the organizational structure. It maintains that redrawing organizational charts, named for the original part of this room is the other, posing the other titles, the job will be run under the new name was. This is only partially true. It is true that when given the new name, the understanding of people about job content may be different. Through the arrangement structure, the methods of the new combination was formed. But all must be based on some conditions:

  • The stability of the business, less volatility and challenges from outside upsets or requires a change of working methods or management methods are available;
  • Internal company has no major conflict of interest or the strategic perspective.

Restructuring styled rearrange organizational structure is suitable only for those companies operating in stable conditions and only unreasonable trouble in the organization.

At a higher level, many people put the issue of restructuring the transition from working under the system, not the process, to work with formal and professional. Rearrange simple structure also creates a change, but this change only spontaneous, depending on whether the majority thinking alike or not. To overcome somewhat spontaneous and dependent, people documented and systematized the process of the formation processes and description, so that anyone will have to work according to a common standard, not dependent on the personality of each person.

Both levels of restructuring as above may be sufficient and successful in the period of the 1990s, since then, most new businesses are developing in scale, what they lack is an organizational structure with structure, to specialization of labor, instead of managing a dynamic but chaotic of a craft workshop as before.

However, even in the 1990s, a restructuring aimed at organizational structures and processes, documentation of work system has also encountered the painful failure. It does not do any business bankruptcy, but useless miserably and gradually disabled, are silently discarded. Some causes of failure can mention here:

  • It does not change, even disabled by the management style of the boss. Management system, the structure really does not fit with the personality of a person.
  • Its effect is not sufficient to prove. It can successfully fortunate to meet good boss or met business with a staff of strong and enthusiastic. However, it is also prone to failure or significant success when missing one or all of these conditions. However, in any case, its relationship with business efficiency and effectiveness of business management are unclear.
  • The conflict of the new system for the benefit or ego of the top HR of business; lack of support and lack of determination to convert.

In the new millennium, some things that businesses are facing is different now. Still there a need for a management structure in place of a structured management of a craft workshop is still heavy. But added to that is a confused and perverted in the understanding of reality and the perception regarding the business environment, the shortcomings in the management skills and the core business.

There has revealed the cause of the restructuring model in the 1990s in Vietnam: the transformation of the management organization structure, the text of the recipes, workflows are an imposed from the outside on existing management thinking. They follow the process of being required to do so, relying on people who was educated, because you need to get ISO certificate , but in truth, then people do not follow the process again. Organizational structure was advised that completely built can be arbitrarily changed according to the boss, overlapping, in disarray and no longer articulated as its newly launched.

Restructuring in significant reorientation of business activities, diversion of corporate investment to increase business performance results are useless in such conditions.

Facing the new challenges of the business environment, as well as self-development needs, Vietnam enterprises needed to be restructured in order to:

  • Seize and take better advantage of business opportunities, overcome challenges increasingly fierce, to survive before the drastic changes in the business environment.
  • Capable to perform their jobs efficiently and sustainably, satisfying the sometimes conflicting interests together

Content of the restructuring of such conditions should include:

  • Change management thinking that should focus in awareness strategies;
  • Reform of the management, the focus is the delineation of roles, how to execute the responsibilities of the Board and the Board of Directors;
  • Reengineering the business process, thereby forming the pattern and organizational structure consistent with conditions and business orientation of the enterprise;
  • Business capacity development and management based processes. It should be noted that capacity development is not just professional skills, which lies in the ability to combine the skills of our team in creating a core capability of the whole system.

(Source: tu

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