Evaluation of key performance metrics

Re-Organization

 

Tara Dean

Lecture Alston

HRMT 655

9/22/2022

 

 

 

Memo

To: All Divisions Leaders

From: HR Manager Pegasus

Date: 9/22/2022

Subject: Re-Organization

Reason for the Change

As you are all cognizant, the company ended its evaluation of key performance metrics in July of this year. The board has therefore approved the restructuring of the workforce in a bid to increase productivity and guarantee the company’s cost-effectiveness. Pegasus is a low-cost company that has always relied on a thriving travel culture and high numbers of customers. Nonetheless, the numbers have reduced as a result of pandemic-related travel restrictions to many routes and places that were once cash cows. Additionally, the corporation’s continued high operating costs have had a negative impact on its earnings. This signifies that the firm’s business strategy is no longer viable, and in accordance with legal constraints, the reorganization will strive to create a leaner workforce that is better equipped to ensure new strategic goals are achieved (Fitzgerald & McDermott, 2017). In addition, the restructuring will involve the redistribution of workers, the consolidation of roles and duties, as well as the termination of some employees. There is no question in my mind that the implementation of these adjustments will have far-reaching repercussions, not only for the workforce but also for the firm’s profitability and market position. The firm understands that the reorganization is required for it to achieve its goals and survive in a competitive market, hence it will take measures to make sure that the actions are carried out in accordance with the applicable market and company regulatory measures (Fitzgerald & McDermott, 2017). The department deems it vital to include all stakeholders in the implementation of this restructuring, taking into account the various perspectives on how the procedure should be carried out without exposing the business to legal dangers. The human resource division will play a crucial role in making sure that workers receive the required assistance and that the transformation procedure is successfully communicated and executed equitably. They will also guarantee that employees are retrained and re-motivated in order to ensure a robust workforce following the restructure.

Steps to facilitate the change process

It is essential to keep in mind that facilitating such a transformation process is never an easy task; yet, necessary and courageous decisions must be taken for all of the stakeholders involved. This is due to the fact that the change may demoralise the workforce that is still in place, which will, in turn, have an effect on the performance of the firm. Hence, the first step that needs to be done in order to make this specific change easier to implement is to guarantee that there is good leadership that will serve as the change leadership. This will include department leaders who are accountable of making sure that the necessity for change is clearly communicated, and the HR division will provide support in order to guarantee that the process will be successful. It will be difficult to lead the reorganization if the leadership does not support the change, which could have an impact on how successfully the process is completed (Qiang & Liqian, 2016).

The second essential stage in facilitating the shift is developing a communication plan that will foster an environment built on shared vision, trust, and team work. A communication plan is crucial to making sure that all workers are informed about the upcoming changes, the rationale behind them, how they may be affected, and how the organization will help them during the restructuring. To guarantee that no employees are in the dark about the upcoming changes and that they receive adequate support throughout the procedure, the change leaders will step in at this point and work closely with the HR department. At this step, one of the essential issues to do is to describe the final goal, as well as the reasons why the current modifications are required and why they should be supported. Therefore, the timescales for the process need to be conveyed in a clear and concise manner to all of the necessary stakeholders, who must then endorse the strategic adjustments (Collou et al., 2019). As part of the reorganization, it will be necessary to keep the organizational culture intact and put its values into practice in order to build a strong workforce. The project will be successful if open communication and support are provided to employees in the form of training in their new positions, support is provided to staff members who have been laid off in the appropriate manner, and the remaining staff members are motivated toward the new strategic objectives in order to meet the needs of customers under the current administration.

Involving the department Leaders in the Change Process

Department managers will play a crucial role in the success of the reorganization. To begin, the heads of each department will take on the role of the designated change agents in their respective departments. The HR team will rely on them to help them deal with people’s resistance to change and to pinpoint problem areas that need fixing. Department managers are in a prime position to provide insightful feedback on how best to incorporate the change as well as how the new arrangement will function in service of the corporate goals because they have a more nuanced understanding of the needs of workers and the firm’s position. Department heads are ideally positioned to act as a conduit between their workers and the HR department, ensuring that employees are actively involved and kept in the loop at all times (Collou et al., 2019).

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