Siemen's Simple Structure

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What do Kleinfeld's efforts at Siemens tell you about the difficulties of restructuring organizations?

When Kleinfeld's efforts at Siemens he has an idea in his mind to get the company restructured in a new and appropriate way. He planned to restructure the company by aligning the lines of responsibilities as it was done previous at Jack Welch at General Electric. Kleinfeld has tried a lot to make the structure as simple as possible and to make it less bureaucratic. He wanted it because of the fact that the decisions can be made more quickly and smartly. He wanted to turnaround the business units which are underperforming and giving no chance to earn revenues and incomes. Finally he thought to make simplified the structure of the company in order to reduce complexity and to gain competitive advantage (Armstrong,2006).

The difficulties of restructuring organizations are:

1) He is facing huge protestation from the employees due to their angriness. This is because the employees are resisting the change in the organisation which is break out in the form of their protesting nature.

2) Kleinfeld has dealing with the picket line issues outside the corporate office at Siemens. The employees there form a picket line and discouraging others to go inside the office due to the restructuring issues.

3) Because of the restructuring issues half of the seats for Board of Directors are being allotted to the labor representatives.

4) Labor groups did not respond positively to the restructuring issues and get distributed in two groups one who support the restructuring and the other one who won’t (Witcher, 2010).

Why do you think Löscher's restructuring decisions have generated less controversy than did Kleinfeld's?

Yes, Löscher's restruc...

... middle of paper ...

...es dealing with team building, activities that will help in diagnosing, feedbacks, activities for process consultation etc (Robbins, 2010).

Works Cited

Armstrong, M. (2006). A Handbook of Human Resource Management Practice. Kogan Page Publishers.

Barry J. Witcher, V. S. (2010). Strategic Management: Principles and Practice. Cengage Learning EMEA.

Cole, G. A. (2003). Strategic Management. Cengage Learning EMEA.

Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. SAGE.

Jeffrey Harrison, C. S. (2009). Foundations in Strategic Management. Cengage Learning.

Robbins; Judge, S. (2010). Organizational Behavior [VitalSouce bookshelf version]. Retrieved from http://digitalbookshelf.southuniversity.edu/books/9780558761431/id/ch18tab01

Mukherjee, K. (2009) Principles of Management and Organizational Behavior, New Delhi Tata McGraw-Hill Education.

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