In general, organizational structure refers to the way that individual employees and teamwork are coordinated inside an organization.
It also refers to the managerial hierarchies within an organization.
The organizational structure sets forth the reporting relationships and information flows within an organization.
The organizational structure of a company plays a key role in shaping the foundation of the organization’s operational policies.
It also plays a crucial role in shaping the organizational culture.
However, there are also several instances in which companies many need to change their organizational structure and adopt new ones.
It can become essential in the face of rising competition, changing industry environment or consumer preferences or shifting demand patterns caused by economic factors or other types of compliance related changes.
In most cases, the main aim behind changing the organizational structure is to improve the organization’s efficiency and grow its competitiveness.
Not all types of organizational structures are suited to every type of organization and companies must adopt the most suitable structure after careful research and by analyzing the competitors.
Having a simplified organizational structure without too many layers of bureaucracy is generally considered more effective since it drives free communication and less bottlenecks that are essential to grow efficiency.
Several times, it is many years after their foundation that companies recognize the need to change their organizational structure.
There are some key things to note whenever a company is taking steps to change its organizational structure.
- Include your employees:
It is important to involve your employees when you are planning to change the organizational structure. There are several operational issues that require attention and to gain deeper insights into these issues the leaders must gain feedback from the front-line managers and employees.
They must carry out meetings and invite key people from all levels. While these people will offer important insights, they will also help you inform other employees regarding the changes you are planning. Apart from that, these people can also work as change leaders and help build excitement around the planned structural change.
- Communicate regularly:
You also need to regularly communicate with your employees regarding the plan to make structural changes. People can use various communication channels to inform everyone including emails and the company newsletter as well as other direct and indirect channels for internal communication.
If the company is planning to downsize employees, it must avoid keeping employees in the dark about the planned changes.
- Make your position clear:
Clearly explain the need for change and why you are planning to bring the structural changes. Tell your people how the planned change will help individual employees and departments.
Apart from holding meetings with the managers, the leaders must also address the entire organization. You can also send emails to let your people know how the structural change will affect individual employees. It is also important to be positive in all forms of communication and lay emphasis on the benefits of the change rather than its negative outcomes.
- Demonstrate your commitment:
It is important to demonstrate your commitment when leading an organization-wide change. Particularly, when you are planning an organization wide structural change, you must lead through example and ask the executives and managers to do the same. Use the opportunity to communicate with others and demonstrate your commitment to change.
- Roll out the change in stages:
You must roll out the change in stages and from one department or one level to another. Since restructuring involves a lot of reorganization, rather than making changes across the entire organization at once, you should bring change from one department to another. Once the initial part of reorganization has been completed, you can roll out the rest of the process at once and minimize the impact of the change on work processes and productivity in the short run.