Restructuring your Business
Businesses need the right roles and structure to operate at their best. As your business develops and your market changes, the right roles and structure might change too. Restructuring can be difficult for everyone involved, but it should be easier if you follow the process and act in good faith.
Restructuring is about making sure you have the right roles to deliver to your customers and your strategy – it’s not a way to manage individual employee performance issues.
If you’re having an issue with an employee’s performance, you can’t ‘restructure’ to get rid of them – you need to manage their performance through the proper channels. If you’re restructuring, you need to have a genuine business reason, otherwise you could face personal grievance cases.
You need a genuine business reason to restructure your business. You’ll need to state this clearly as you go through the process.
Genuine reasons include:
- realignment of brand
- changing your product or service offerings
- financial issues resulting in the need to downsize or realign
- no longer using a department
- wanting to outsource certain business functions
- merging with another business.
Source: Business.govt.nz