Distinguishing Downsizing from Restructuring: Key Insights PPT

This PPT slide, part of the 29-slide Restructuring: Redeployment Assessment Process & Methods PowerPoint presentation, presents a clear distinction between downsizing and restructuring, emphasizing their differing impacts on organizational roles. Downsizing is characterized by minimal changes to the fundamental nature of roles within the organization. It involves reducing the number of employees performing existing functions without altering the core responsibilities associated with those roles. The slide notes that downsizing typically lacks a new ownership strategy and is not hierarchical; it merely eliminates specific positions or individuals.

In contrast, restructuring is depicted as a more transformative process. It often leads to the creation of new roles and the modification of existing ones, necessitating a fresh mix of skills or new resources to fulfill these updated responsibilities. Restructuring may also entail a shift in ownership, indicating a more strategic approach to organizational change. The hierarchical nature of restructuring is highlighted, suggesting that it can affect ranks at the highest levels of the organization.

The slide concludes with a provocative question applicable to both scenarios: "Who should we eliminate?" This question underscores the critical decision-making involved in both downsizing and restructuring, prompting leaders to consider the implications of their choices on the workforce. Overall, the slide serves as a foundational overview for executives contemplating organizational changes, providing essential insights into the strategic considerations of each approach.

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Restructuring Organizational Change