Unit 1 Question 11 - Restructuring is a popular management tool used in business today It is a resizing tool used to downsize or right-size an

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Restructuring is a popular management tool used in business today. It is a resizing tool used to downsize or “right-size” an organization by eliminating the jobs from the top all the way to the bottom. Restructuring has become a popular tool used to resize a company. In Contemporary management , Xerox is cited as one of many companies that downsized. So why is restructuring used? Often time’s companies restructure its organization to increase revenue, this is accomplished in few different ways. Companies have invested a great deal in advance IT which improves efficiency and effectiveness (Jones & George, 2008). Downsizing becomes possible because IT’s make it possible for fewer employees to perform because they have given them the ability to process information more quickly and make decisions accurately. By “downsizing” a company, it allows them to reallocate the money to other departments to further increase profits. Often times restructuring leads to companies outsourcing labor to reduce cost,
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This note was uploaded on 08/02/2011 for the course BBA 3602 taught by Professor Mr.davis during the Spring '11 term at Columbia Southern University, Orange Beach.

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