Management Fix: Company Reorganization

A MngtFix is an actionable solution for a problem with pros and cons to be evaluated by a human manager. Every other week we share a little bit of our knowledge base on social media and our newsletter. This week’s MngtFixis…

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Description

This week’s “Company Reorganization” is a very tough solution, so it can’t be decided lightly.

By definition, company reorganization could be a change in the structure or ownership of a company through a merger or consolidation, spinoff acquisition, transfer, recapitalization, or change in identity or management structure. Such an endeavor is also known as “restructuring”. (Extracted and adapted from https://www.investopedia.com/terms/r/reorganization.asp)

A business organization makes changes in personnel and departments and can change how workers and departments report to one another to meet market conditions. Some companies shift organizational structure to expand and create new departments to serve growing markets. Other companies reorganize corporate structure to downsize or eliminate departments to conserve overhead. Often new owners or managers rearrange business structures to create a familiar business model.