Preparing to Conduct Business - Essay Example

Restructuring of an Organization: Preparing to Conduct Business Introduction For the following scenario, an ordered way of solving the problem wouldbe presented. Questions regarding the situation could bring forth hypotheses as well as the ethical considerations that must also be included in the analysis and solving for the best solution to the problem. Consider this example: Due to a restructuring in a certain company A, they need a fresh start however, at the expense of many of the employees losing their jobs.

The dilemma of hiring new employees can be an expensive process due to the need for training the new hires, losing productivity as the cost of laying-off the tenured employees, as well as coping for the remaining or new managers in the newly-built structure of the company.What are the research questions? Possible research questions for the scenario are: 1) Should the functions for each job description be adjusted to suit the new organizational structure? 2) How many tenured employees must be retained in order to keep the company working smoothly as before, and at the same time within the new structure’s limits? And 3) Would the gap between costs and profits after restructuring increase or decrease, as compared to the old structure, and by how much?

What are the hypotheses? Possible hypotheses, which can be either a null hypothesis (no difference between X and Y) or alternative hypothesis (X is better than Y, or vice versa) for the given scenario can be deduced using the example research questions stated above: 1) Ho: The old job descriptions can still be used for the new structure of the company. Ha: Job descriptions must be updated to suit the new organizational structure. 2) Ho: No need to hire more than 3% of the original employees since this is enough to both train the new hires and keep the organization going.

Ha: Hiring at least 50% of the original employees would be enough to train the new hires and keep the organization sailing. 3) Ho: The gap between cost and profits would be the same as in the old structure. Ha: Gap between cost and profit can either be: cost is greater than profits, or profits are greater than cost.What variables are to be considered? While business restructuring is a strategy usually undertaken by many companies to cut costs, there are many things to be considered before undertaking such a task (Zilka 13).

In order to be able to maximize profits as well as the cuts in costs, the business must have a solid program as its foundation. There must be sufficient data, analytics as well as benchmarking in order to gauge the new program’s effectiveness (14). This would ensure that the new organizational structure would be able to save more and gain more.What ethical considerations must you take into account? Not only does the restructuring of the organization must be timely and efficient, it must also be within the laws and regulations as prescribed in ethical guidelines.

On some occasions, companies would research on their rivals on the account of finding out whether they have similar structures, and if there are differences, what those would be. By abiding with the rules and regulations regarding the gathering of competitor intelligence, not only would the company be ethical, but also it gives the image of being a corporate citizen (Hitt, Ireland and Hoskisson 61). Examples of ethical means of learning about the competition is by obtaining publicly-available information such as competitor advertisements and financial reports, and another is by attending trade shows and fairs that showcase most of the competing companies’ products and brochures (61).

Conclusion In the given scenario at the beginning of this paper, wherein there is an organizational restructuring of Company A, several steps are needed to be undertaken in order to properly execute the new structure and programs of the company. Thus, the research for this scenario has the main purpose of analyzing the pros and cons of the restructuring in terms of the margin between the profit of the company and the costs of implementation. However, it must also be noted that aside from outlining the pros and cons, ethical considerations must also be made, starting with the initial design of the new organization up to the implementation of the new rules.

By being able to integrate all aspects of the plans for restructuring, A Company must be able to choose which method would be better in the long run, especially when it has to start from the beginning again.Works CitedHitt, Michael A., R. Duane Ireland and Robert E. Hoskisson. Strategic Management: Competitiveness and Globalization, Concepts. Mason, OH: South-Western Cengage Learning, 2011. Print.Zilka, Carla. Business Restructuring: An Action Template for Reducing Cost and Growing Profit. Hoboken, NJ: John Wiley & Sons, Inc., 2010. Print.