...[ISSN: 2249 –0892] Vol. 01 – Issue: 01 (Jan - Jun 2011) CORPORATE RESTRUCTURING - A FINANCIAL STRATEGY Vikas Srivastava1 Ms. Ghausia Mushtaq2 ABSTRACT This paper serves the very purpose of defining the corporate restructuring as a financial strategy adopted towards the financial development and enhancement of an organization suffering from a major set back at any level of operation. Technological advancement and environmental or political – legal changes and polices enable the companies to move in the direction routed by the changing environment of the new era. There is a lot of competition in almost all respect as the there is not only the survival of the fittest but also the wittiest. In phase of rapid industrialization, only those organization will survive which will create and able to deliver the maximum value as satisfaction to their customers. The corporate restructuring, as the financial strategy, will make an effect on the overall cost of capital or will have an effort to bring it to the lowest so that the changes with respect to various operational and functional activities of the organization will be taken care of by the organizational changes. Corporate restructuring is one of the most complex and fundamental phenomena that management experiences. Each company has two opposing objectives from which it has to choose: to diversify or to refocus on its core business. Financial restructuring involves the redeployment of corporate assets through divestures of...
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...Restructuring in the Oil and Gas Industry: Implications for HR Practitioners BY ISAH MOHAMMED ABBASS Department of Political Science, Ahmadu Bello University, Zaria, Nigeria isaabbas@yahoo.com Abstract Management of people and organizations requires some specialist attributes. In managing these vital resources, there has to be a distinctive philosophy of providing and enhancing people-oriented organizational programmes. Restructuring is one of such activities or programmes. This activity is essentially designed to reconstruct or reorganize the structure of the business activities to suit objectives, purpose as well as circumstances of the job. Oil and gas industry is a potential sector of the business environment that is more prone to constant but periodic restructuring due to its dynamics. This Paper explores the structure and work environment in some oil and gas industry in attempts to reorganize or restructure them. These attempts are highlighted with implications for organizations’ employees, stakeholders as well as the HR Practitioners. An insight into the restructuring of PTI has been buttressed as a specific example on how the modern organizational perspectives have been put in place against the orthodox method in order to bring efficiency and effectiveness in the operational activities with resource centered HR Practitioners in focus. Introduction The theme: Restructuring in the Oil and Gas Industry: Implications for HR Practitioners is an engaging...
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...UNSW BUSINESS SCHOOL International Human Resource Management MGMT 5949 Student Id Number-Z5102653 Student Name-Yash Patwari Case analysis on- Global Diversity and Inclusion at Royal Dutch Shell I declare that this assessment item is my own work, except where acknowledged, and has not been submitted for academic credit elsewhere, and acknowledge that the assessor of this item may, for the purpose of assessing this item: * Reproduce this assessment item and provide a copy to another member of the University and/or * Communicate a copy of this assessment item to a plagiarism checking service (which may then retain a copy of the assessment item on its database for the purpose of future plagiarism checking). I certify that I have read and understood the University Rules in respect of Student Academic Misconduct. Signed by- Yash Patwari Case Overview Royal Dutch Shell is an Oil and Gas company created in 1907 through the alliance of the oil company Royal Dutch Petroleum Company and the British Shell Transport and Trading Company. Since mid-1990’s Shell started giving attention to Diversity and Inclusion (D&I). Shell has been placing great interest on D&I since that time. The company was restructured in 2005 and Jeroen Van Der Veer became the first CEO of the company. During that time rising oil prices helped Shell’s expansion projects. Since the 2000s Shell had been building its D&I around three areas: Talent, Leadership, and Competitiveness...
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...Module 1 – CASE HUMAN RESOURCE MANAGEMENT; CHALLENGES AND CHANGES Case Assignment In today’s job market we see many human resource management changes and challenges evolving with the changes in a competitive market environment. One goal of the human resource department is to hire employees that will be as productive as possible, which in turn leads to more revenue and the success of an organization. In healthcare we see even more challenges; making sure there is enough staff members to care for the patient load, keeping morale high, keeping the budget down, making sure the employee is properly trained and oriented, to name just a few. First, explain the significance of human resource management and then identify and discuss the following: 1. How organizational restructuring has impacted staffing in healthcare organizations. 2. Does decreasing the number of employees always save an organization/company money? Why or why not? 3. How would you select a “qualified person” for a position? What about a successful leader in healthcare? 4. Discuss other specific human resource issues that are relevant in the healthcare setting. Note: In preparing your response you should not only draw from the assigned readings but should also incorporate additional research you conduct on the subject. Be sure to properly cite all references used in preparing your paper. Assignment Expectations Number of Pages: 2–3 Scholarly Content Your CASE/SLP and your case assignments are...
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...Analysis of a Case Study of Trauma in the Workplace By David M. Noy Sr. University of the Rockies Abstract This paper examines a case study performed on an organization merging two business units into a single entity. The result was the employees from the smaller of the units felt a loss of identity, confidence, and of hope and meaning. The organization realized six months after the merger that there were unresolved issues that had traumatized the employees affected by the merger and how the organization worked with the employee to allow healing and the ability to move on and embrace the new direction of the organization. Introduction Trauma is a real thing within the organizational structure and does affect the emotional well-being and perception of the employee and how the employee views the organization. Organizations engage in restructuring all the time and at times the restructuring comes from the top down and the employee must adapt to the restructuring or fail within the new structure of the organization. This organizational restructuring can cause trauma to the employees who are involved with the restructuring. Case Study In today’s society, we read about cases of workplace violence and visibly see the trauma that the victims experience. Unresolved emotional trauma in many organizations blocks peoples’ capacity and ability to perform (de Klerk, 2007). The de Klerk, 2007 case study looks at how mergers, downsizing, outsourcing, restructuring, and continual...
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...Organizational Behavior CASE ANALISIS- BUCK & PULLEYN This report analyzes and evaluates several of the steps taken by Buck and Pulleyn during their restructuring process. The focus will particularly be on the initial and the middle stages of those changes. The implementation of those restructure changes, the different strategies used to foster those restructure changes and the determination of how Buck and Pulleyn will react to a possible change in leadership will also be analyzed throughout this report. As shown from a recent Organizational Change seminar provided by Webster University, the restructuring process is not only challenging but will almost likely be met by some type of obstacle or obstacles which will hamper that process. The main obstacles or problems hindering Buck and Pulleyn’s restructuring process is an agency that in itself has remained relatively static with regards to structure and organizational management for almost11 years, an agency which has shown a lack of employee input in decision making, and an agency with a departmentalization type structure that fosters the famous “Silo Effect” of management. Due to these and other problems, this report will address how Buck and Pulleyn tackled the issues and I then provide some recommendations and solutions on how to correctly apply effective organizational changes to their current organizational structure. The initial change initiatives proposed at Buck and Pulleyn are interesting but at the same...
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...Blank. From the start, associates were able to offer the best customer service in the industry, guiding customers through projects such as laying tile, changing a fill valve or handling a power tool. Not only did store associates undergo rigorous product knowledge training, but they also began offering lessons so customers could learn how to do it themselves. Home Depot is still guided today by those values established by its founders, excellent customer service, taking care of people, entrepreneurial spirit, respect for all people, building strong relationships, doing the right thing, giving back to communities, and creating shareholder value. (Corporate Website, 2003). I will be concentrating on the Human Resource department of the organization. They restructured their HR department by cutting down their HR functions believing that it they could create jobs in other sections of the company. The changes occurred when the company officials decided that it won't be handling human resources issues on a store by store basis any longer, but instead to handle employee HR from a district-wide perspective. It was intended to save the retailer costs from a headcount burden at each store that may not be the best use of its labor force, but then again,...
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...To what extent was market maturity the cause of Caterpillar’s restructuring? Critically examine the extent the new strategy transformed market, productive and financial performance. The aim of this paper is to assess the extent to which market maturity influenced the restructuring phase that Caterpillar underwent after it was nearly put out of business in the 1980s. It will be argued that surely market maturity played a central role in the company’s restructuring, as the increase of competition and the need for product innovation brought up the need to develop an effective action plan. However, it was also the over-managed organization of the company itself that contributed to this degenerating stage and that therefore drove the restructuring process. Indeed it will be argued that because Caterpillar had enjoyed reliable profits, internal organizational issues had been ignored and the lack of information about the external environment decreased, causing Caterpillar to grew out of touch with the realities of the market. Therefore as the global recession grew along with the runaway inflation that kicked in in the 1980s, Caterpillar’s flawed structure was not able to successfully respond to the external environment and the company became an easy target for competitors. This argument will be developed throughout this essay according to the following structure: initially the implications of market maturity for Caterpillar will be assessed within the framework of the Product Life...
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...are beginning to show signs of dissatisfaction, distrust, anger and disbelief. This situation has to be carefully handled and managed by Voser to prevent it from worsening. It can easily become much worse if not handled properly and promptly. Voser's commitment to D&I has now been questioned. Therefore I believe he should try to gain the trust of his employees again by attempting to clarify his position. Voser needs to hold a meeting with senior and middle level of management where he should address and clarify his position and actions. He needs to communicate his efforts and achievements of getting D&I implemented. Voser should explain how hard he worked towards achieving the objective of implementing diversity and inclusion in organization. He needs to mention all of the difficulties which came in his way of achieving his objective and commitment while discussing the actions and major steps he took to make D&I a reality. Voser left no stone unturned in his commitment to implementing diversity and inclusion. Senior leaders were asked to embed D&I message in all of their communication," Valuing Difference" became an element of Shell's leadership framework and how Shell enlarged its range of educational program to address D&I. Finally, Voser needs to speak about the company's performance and how it increased leaps and bounds by adopting D&I. By...
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...Bankruptcy filing of Kodak Whenever a big corporation files for bankruptcy, many investors question the move. After the recession, many big corporations like Lehman Brothers etc filed Chapter 11. A chapter 11 case starts when the company voluntarily files for a petition in bankruptcy court. When the company has many outstanding, it prefers to file for the case. It was no big surprise when Eastman Kodak, 131 year old company that was founded by George Eastman filed for bankruptcy protection in 2012 under chapter 11 of US bankruptcy code in Southern District of New York. It was pioneer in introducing first automatic snapshot camera. It was the first company that provided the individuals a solution for taking their own photographs and not depends on professionals. The term ‘Kodak Moment’ became synonymous with taking pictures of precious moments and having pictures of life time of memories. Reasons for Bankruptcy An attempt is made to understand what lead to the financial distress in the company. The top management of Kodak could never innovate. Though they were pioneers in launching the concept of self photography, many competitors developed better products and took the market share from the company. The company thought that its customers would remain loyal to it but when new products and new technology was offered in the market, it lost its market. The company did not pay attention to the improvement in the technology. When digital cameras came into existence, Kodak did...
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...Cisco IT Case Study Organizational Change and Advanced Services for Operational Success How Cisco IT Implemented Organizational Change and Advanced Services for Operational Success New organizational framework greatly improves operations. Given today’s pressing need to optimize IT services and resources while reducing costs and improving organizationwide productivity, the Cisco lifecycle methodology offers the framework needed to make operations more efficient and responsive. Cisco IT Network and Data Center Services (NDCS) changed from using a traditional organizational model to Cisco’s own lifecycle model, with substantial operations improvements across five different metrics. This case study describes Cisco IT’s internal infrastructure, a leading-edge enterprise IT environment that is among the largest and most complex in the world. “By moving from a traditional technology, silo-based organizational structure to a lifecycle-based model, we were able to improve our operational metrics considerably. Our number of cases decreased by approximately 60 percent, and our time-to-repair to get clients back up and running has decreased by almost 70 percent.” John Manville, Vice President, IT Network and Data Center Services, Cisco BACKGROUND An enterprise with 300 locations in 90 countries, Cisco has 46 data centers and server rooms supporting the 65,000-plus employees. Fourteen of the data centers/server rooms are production or customer-facing and 32 are used for product...
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...in front of the negativity voiced by some members of the organization before it festers into discontent and organizational tension. “Voser did not think it appropriate to measure his commitment to diversity and inclusion by looking only at the group of eight people at the very top of Shell” (Sucher 2020, p.1). It is important that Voser points out that the creation of the new Executive Committee (EC) does not represent the efforts of the organization to be both diverse and inclusive. He should reaffirm throughout the ranks that the mission will continue to be diversity and an atmosphere that encourages inclusion. It is pretty obvious from reading the case that the committee does not adequately reflect the culture that has been devised within the Royal Dutch Shell Company. I feel that it is important that this issue of negativity be dealt with and not overlooked. If left unattended it could lead to distrust, skepticism, and low morale amongst the employees. It should be handled properly and promptly before the situation becomes critical. As a new CEO, Voser needs to quickly clarify his position of diversity to gain trust and begin to build a good relationship with him employees. These efforts might start by having a session with the top levels of management to clarify his intent concerning the formulation of the committee. It is particularly important that he does not lose the support at this level of the organization. He should brief them on his plan to further...
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...Cisco IT Case Study Organizational Change and Advanced Services for Operational Success How Cisco IT Implemented Organizational Change and Advanced Services for Operational Success New organizational framework greatly improves operations. Given today’s pressing need to optimize IT services and resources while reducing costs and improving organizationwide productivity, the Cisco lifecycle methodology offers the framework needed to make operations more efficient and responsive. Cisco IT Network and Data Center Services (NDCS) changed from using a traditional organizational model to Cisco’s own lifecycle model, with substantial operations improvements across five different metrics. This case study describes Cisco IT’s internal infrastructure, a leading-edge enterprise IT environment that is among the largest and most complex in the world. “By moving from a traditional technology, silo-based organizational structure to a lifecycle-based model, we were able to improve our operational metrics considerably. Our number of cases decreased by approximately 60 percent, and our time-to-repair to get clients back up and running has decreased by almost 70 percent.” John Manville, Vice President, IT Network and Data Center Services, Cisco BACKGROUND An enterprise with 300 locations in 90 countries, Cisco has 46 data centers and server rooms supporting the 65,000-plus employees. Fourteen of the data centers/server rooms are production or customer-facing and 32...
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...Srinivasa Rao | | | Contents INTRODUCTION 2 DOWNSIZING 3 RESTRUCTURING 4 PRIMARY ISSUES 5 How to Downsize Effectively 5 COMPANY BACKGROUND 8 PRIMARY ISSUES - II 9 GENERAL MOTORS: RESTRUCTURING 10 RECOMMENDATIONS 14 CONCLUSION 15 REFERENCES 16 INTRODUCTION Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate mergers, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of businesses and changes in the industries and markets. Regardless of the reasons, mergers and acquisitions are likely to continue into the next century (Boockholdt & Service, 1997). In this case study, we will discuss the organizational restructure that...
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...MEMORANDUM To: Dr. John Morris, Department of Accounting From: Group # 2 (Cong Ye, Cory Kowalski, Yajing Wu) Date: 4/5/12 Subject: Acctg 642: Case 08-6, The Rump Organization Statement of Facts The Rump Organization (“Rump”), an SEC registrant, is a commercial real estate company that purchases and constructs commercial property. Under the company’s restructuring plan, Rump’s CEO, Ronald Rump, and Rump’s board of directors approve a plan to terminate 100 of Rump’s employees. Under the plan, each terminated employee is to receive a lump-sum cash payment equal to one month’s salary but only if the employee voluntarily signs a waiver of any right against Rump. The following additional facts are given: * The plan was approved on December 27, 2005 by Rump’s board of directors and Rump’s CEO, Ronald Rump. * The corporate restructuring plan identifies 100 employees to be terminated, the job classifications and locations of each employee to be terminated, and the expected completion date of January 31, 2006. * On December 31, 2005, each affected employee was e-mailed a summary of all the plan’s terms, which included the amount of severance benefits the employee would receive upon termination, subject to signing the litigation wavier by January 31, 2006. * Rump believes it is unlikely that significant changes will be made to the plan or that the plan will be withdrawn before its execution. * The plan allows employees to leave Rump at any time, but no later than January...
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