Organizational redesign is a strategic process that involves reshaping the structure of an organization to align with business strategies, creating new capabilities, and enhancing competitiveness in the global market. The goal is to improve efficiency and success. It's important to note that there is no one-size-fits-all organizational model, and the success of redesign efforts depends on a thoughtful and systematic approach that considers the current priorities of the organization.

Here are the phases typically involved in organizational redesign:

  1. Defining Business Objectives: Analyze and assess the needs and desires of the organization to set clear business objectives.

  2. Strategic Grouping of Decisions: Explore characteristics that are desired or undesired for the organization and make strategic decisions accordingly.

  3. Designing Operational Processes: Explore various options for designing operational processes that align with the new objectives.

  4. Defining Behaviors: Identify existing behaviors in the organization and define new behaviors that need to be adopted. Consider reinforcement mechanisms to sustain the changes.

  5. Implementing New Roles and Responsibilities: Implement changes in roles and responsibilities based on the redesigned structure.

It's crucial for organizations to focus on the business objectives and strategic execution during the redesign process. Sometimes, companies make changes without considering their profitability or long-term impact, leading to repeated restructuring efforts.

In addition to structural changes, organizations might also consider redefining the brand experience. For example, in the apparel industry, understanding consumer preferences and providing a world-class shopping experience can contribute to the success of organizational redesign. Companies may also adapt to changing consumer behaviors, such as shifting to stand-alone stores for a better brand experience.

Louis Philippe's transition to brand stores is an example of aligning with consumer preferences and creating a distinctive brand experience. Success in organizational redesign lies not only in structural changes but also in understanding consumer mindsets, conducting market research, and ensuring that product lines are well-aligned with the changes, making the organization a leader in the market.

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Redesigning is generally manipulated by the management's desire to make changes, and prove successful when driven by clear rationale. Companies which opted for redefining seeking cost cuts witnessed some difficulties to balance immediate cost savings with long term competitiveness and sustainability. Morale of the business will be deeply affected if redesigning is implemented poorly.

Challenges for successful re-designing:


Major constraints in the successful implementation of re-designing are employee distraction, and demoralization. Employees resisting change in the organizational structure had a strong negative impact in hindering the implementation of redesigning structure. A redesigning generally changes the nature of organization's functioning, and simultaneously affects the people who have rose to the top in the old system. Redesigning is normally done focusing on the way the organizations should look, but the way of working of its staff may remain the same and cause hindrance for its success. The company may also experience unexpected bottlenecks during the implementation process.

Tools for Successful Redesigning:

  • Organizations must attempt to use the redesigning process as an opportunity to change the mindset and behavior of the employees.
  • Introducing new incentive plans immediately before, or after the redesigning process.
  • Assessing and controlling bottlenecks rapidly, before and during the implementation process.

Productive professionals make big enterprises competitive, and it is in the hands of the organization to redefine their existing way of operations to be in par with the global trends and also be accepted by their staffs. New overlaid networks and marketplaces should also be created making it easier for the consumers to perceive organizational transformations.


References:

  1. Allbusiness.com
  2. Leadership-and-motivation-training.com
  3. Indianrayon.com