Scenario You have worked at your current employer for 5 years. Recently your company merged with a much larger Boston accounting firm to improve efficiencies, increase revenues, cut costs and adopt...

Running Head: RESTRUCTURING AND DOWNSIZING PLAN                1
RESTRUCTURING AND DOWNSIZING PLAN                        10
RESTRUCTURING AND DOWNSIZING PLAN
Table of Contents
Why is the change needed?    3
What will change?    3
Who will be affected?    4
How will they be affected?    4
How will potential conflict be managed?    5
How will trust be strengthened or repaired?    5
How will power be shared in the organization after the restructuring/downsizing?    6
What tactics will be used to achieve a successful restructuring/downsizing transition? What tactics will be avoided?    6
What are the benefits of the planned changes? And What is the timeframe of implementation?    7
How will changes be communicated to the employees?    7
References    9
Why is the change needed?
· It helps in reorganizing the structure of the organization to bring on more profits and make proper clients.
· It will not only provide the company with the opportunity to continue trading or operating, but will also provide the creditors with the best possible opportunity of being repaid.
Corporate restructuring is a model or process of making changes in the composition of a firm’s one or more business portfolios in order to have a more profitable enterprise. As informed by Harney, Fu and Freeney (2018), restructuring is the reorganization of companies’ outstanding liabilities. It is generally a mechanism used by companies, which are facing difficulties in repaying their debts.
The company usually adhere downsizing, when it reduces its scale and scope of the business, in order to improve the financial position. A common way is to reduce the size of the labor. When company goes through some economic, legal atrocities to be in the market, it follows downsizing and restructuring policy. It starts cutting financial requirements.
What will change?
· Changes in downsizing include reduction in number of employees and redesigning of workflow
· Changes in restructuring include merger with Boston accounting firm to improve efficiencies
The focus behind the number of reduction is to eliminate too many positions and head count in the company. As mentioned by de Jong et al. (2016), if the company merges with any other company, it is indeed that its operation also merged and there are now fewer positions.
Another change is redesigning of workflow, as reduction of the employee has negative impact. The company can also follow resigning policy, employee resorts to different types of work and their job profiles resigned as per the needs of the company; whereas in merger, the firms bring in cash and other resources, which the amalgamated firm can use effectively for diversifying as well as for continuing the business for a longer period.
Who will be affected?
· The threat of layoffs makes for a stressed out workforce. Employees feel anxious.
· Merger improves capacity, market size and operating efficiency.
· Merged companies offer a larger and wider range of products and/or services than the individual companies to the customers.
As stated by Notanubun, Ririhena and Batlolona (2019), layoffs will have a negative impact on the employees. When they live in the constant fear of losing their job, it reduces employee motivation...