Timing Effects of Management Restructuring

Management Restructuring Prior to Re-engineering

Advantages:

· Signals seriousness of effort

· Allows managers ultimately responsible for areas to perform redesign

· Demonstrates equity to employees as management gets cut first

Disadvantages:

· Forces new managers with now new, unfamiliar areas to make changes without adequate knowledge

· Heightens organizational tension through the process

· Overburdens new managers with requirements of new units and participation in the re-engineering process

Management Restructuring During Re-engineering

Advantages:

· Allows changes to be made promptly

Disadvantages:

· Disruptive to process when key individuals depart

· Heightens organizational tension

Management Restructuring After Re-engineering

Advantages:

· Organizational structure can be more optimally configured to re-engineering results

· Managers can be selected according to new skill set needs

· Allows for greater unit continuity through re-engineering process

Disadvantages:

· Managers may lack incentive to radically change orientation if high job uncertainty exists during the process