Restructuring for Corporate Success: A Socially Sensitive Approach

How can an enterprise restructure in the spirit of social partnership with maximum economic benefits and minimum costs to workers, the community and society at large? Growing competition and globalization along with tightened fiscal policies are causing both private and public sector organizations to strive for greater efficiency and higher cost-effectiveness. In many cases the desired results cannot be achieved without subjecting the corporate strategy and structure to some transformation. In this context, restructuring is no longer just an option; it is a necessity for survival and growth. However, it is in the interest of all the stakeholders that restructuring be carried out in such a way as not to jeopardize the high value of the human capital of the enterprise. This book explores the issue of socially sensitive enterprise restructuring (SSER) by providing a number of examples from different countries, it describes how good management practices, social partnership, communication and health industrial relations can be beneficial throughout the change process. The major findings are as follows: It is often believed that downshifting has positive impact on the performance of the company and the so-called "survivors". However, this is not always true in practice. In order to achieve desirable economic and social results in the process of downsizing, management should always have a plan of action if restructuring becomes inevitable, starting with the company's human resources. The creation of a system of functional flexibility could be an important component of this approach. Restructuring goes smoothly if it is based on a joint agreement between employers and workers and, in some cases, the government.