Templates>Organizational Change & Restructuring Policy

Organizational Change & Restructuring Policy

In volatile markets, organizational change & restructuring policy provides a framework for leading conscious, low-disruption change, essential for survival. It addresses controls for change management, conditions for restructuring, and how to manage mergers and acquisitions, concerning the rights of affected employees.

Organizational Change & Restructuring Policy

Created by

Naif O. Alawbathani

|

Human Resources Adviser

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What’s included in the organizational change & restructuring policy?

The organizational change & restructuring policy begins by detailing the types of organizational changes affecting employees. It then outlines the criteria the company follows to responsibly manage these changes, safeguarding both employee rights and company interests.

The policy addresses the steps involved in the company's restructuring process, covering administrative approvals, transition plans, and more. It also provides guidelines for implementing mergers and acquisitions, balancing business needs with the goal of maintaining employment continuity.

Furthermore, the policy covers termination of service cases, including application priorities and objective criteria for employee selection and evaluation.

It defines who is financially responsible for repaying departing employees' entitlements, such as end-of-service benefits and remaining leave.

Given the crucial role of talented employees during times of transition, the organizational change management policy outlines the company's approach to retaining exceptional employees and providing them with necessary resources.

Organizational Change & Restructuring Policy - Table of contents

1. Objective

    2. Scope

      3. Principles

        4. Restructuring Process

          5. Mergers & Acquisitions Procedures

            6. Termination Guidelines in M&A

              7. Financial Responsibility

                8. Employee Communication

                  9. Employee Support & Appeals

                    10. Severance & Benefits

                      11. Post-Integration Talent Retention

                        12. References

                          Why do you need an organizational change & restructuring policy?

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                          Clarity helps employees accept change and reduces their resistance.

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                          To maintain employee morale by establishing fairness and transparency.

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                          To ensure compliance with regulations governing layoffs and minimize discrimination.

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                          Enhancing the company's long-term adaptability to change.

                          How do you use the model?

                          1

                          Download the template and review the content.

                          2

                          Customize it with name, logo, and challenges associated with organizational changes.

                          3

                          Add the policy to the employee handbook and share it in Jisr HR system.

                          4

                          Ensure compliance by getting the Organizational Change & Restructuring policy reviewed by a legal/HR expert.

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                          FAQ

                          What are the 5 C's of organizational change management?

                          The 5 C's of organizational change process emphasizes that successful transformation is deeply rooted in human factors. The five pillars are:

                          • Clarity: Defining the fundamental "why" behind the change, its purpose, and how it aligns with strategic goals. This reduces uncertainty and unifies vision.
                          • Communication: The "heartbeat of change," involving consistent, creative, and thoughtful messaging across various channels to build momentum and trust, avoiding surprises.
                          • Collaboration: Breaking down silos and fostering collective ownership by involving diverse, cross-functional teams to ensure shared journeys rather than imposed directives.
                          • Culture: Recognizing that an adaptable, innovative culture makes change natural. It's about embedding new practices and building trust through small wins to shift mindsets.
                          • Commitment: Ensuring leaders visibly champion the change, provide necessary resources, and "walk the talk." Their unwavering support builds trust and resilience throughout the long-term transformation.

                          What are the 6 types of organisational change?

                          Organizations face diverse changes, requiring tailored strategies. Here are six common types:

                          • Strategic Change: Updates to mission, innovation efforts, or restructuring to achieve goals or respond to market shifts (e.g., shifting focus to upselling, downsizing).
                          • People-Centric Change: Directly impacts employees, such as new hire onboarding, changes to roles/responsibilities.
                          • Structural Change: Alterations to the organization's hierarchy, team setup, or departmental responsibilities.
                          • Technological Change: Introduction of new software or systems to boost productivity, like digital transformation initiatives or implementing new tools.
                          • Unplanned Change: Necessary actions due to unexpected events, such as a sudden shift to remote work or the loss of critical personnel.
                          • Remedial Change: Reactionary changes implemented to address an identified problem, like improving customer communication.

                          What are some examples of organizational changes in companies?

                          Organizational changes in companies involve significant shifts to adapt and grow. Here are common organizational change examples:

                          • Corporate Restructuring: Reorganizing the company's hierarchy, reporting lines, or team configurations. A company restructuring example includes flattening management layers or creating new specialized teams.
                          • Mergers and Acquisitions (M&A): When two companies combine, leading to integration of systems, processes, and cultures across the newly formed entity.
                          • Digital Transformation: Adopting new technologies and digital processes to boost efficiency, enhance customer experience, or create new revenue streams (e.g., cloud migration, new CRM systems).
                          • Changes to Product/Service Offerings: Introducing new products, services, or even pivoting to entirely new business models (e.g., from product sales to subscriptions).
                          • Process Improvements: Streamlining operations for greater efficiency through new workflows, automation, or improved internal communication.

                          What are the four steps of company restructuring?

                          When undertaking the restructuring process, follow these four key steps:

                          • Document Your Proposal: Clearly outline the genuine business need, the proposed new structure, its impact on current roles, and any roles being disestablished or substantially changed. Focus on roles, not individuals, and ensure all facts are accurate.
                          • Invite People to a Meeting: Inform affected employees of the proposed restructure and invite them to a meeting. Give them enough time to prepare and let them know they can bring a support person.
                          • Hold the Meeting: Present the proposal, explain the process and timeframes, and clearly state affected roles. Offer opportunities for written feedback or private meetings.
                          • Gather and Genuinely Consider Feedback: Allow employees time to provide input. Crucially, genuinely consider all feedback received before confirming the final structure. If significant changes occur, you might need to revert to Step 1.

                          How to restructure a department?

                          To effectively restructure a department, start by defining the problem you aim to solve, as this dictates your strategy. Next, set clear end goals to provide a vision for the reorganization's outcome. Then, determine the new structure collaboratively by brainstorming and gathering input from stakeholders and employees. During this, create a comprehensive timeline.

                          Crucially, consider the existing workplace culture to ensure the new structure aligns and facilitates a smooth transition. Finally, choose individuals to lead the change at various stages, empowering them and fostering a sense of ownership within the department. This strategic approach maximizes effectiveness and minimizes disruption.