Human Resources in Organizational Restructuring and Change

The Role of Human Resources in Organizational Success

Even the most rigidly resistant organization can be persuaded to change through its human resources needs. A lack of adequate human resources translates directly into a lack of profit. Profit is a vital concern for any company, and the motivation to make profitable changes is correspondingly high. Human resources are what drives a company toward its goals. Employees perform the actions that either generate profit or contribute to the company's losses. Any company — even one unwilling to embrace change — will ultimately see the wisdom of adjusting its human resources strategy toward maximum benefit. Indeed, the very survival of a company may depend on the effectiveness of its human resources department.

HR's Central Role in Restructuring and Reengineering

In restructuring and reengineering an organization, human resources (HR) plays a vitally important role. It must first be recognized that no restructuring process is easy, and that employees will experience an unusual amount of stress during such transitions. This stress may negatively affect performance. The company therefore needs to do what it can to support employees through the restructuring process. Furthermore, organizational restructuring involves identifying shortcomings in HR and filling those gaps with appropriate candidates recruited from either outside or within the company. Sourcing candidates from within the organization may help existing employees manage their change-related stress more effectively, as it signals opportunity rather than threat.