OB Case Study

Siemens Simple Structure-Not

Submitted By: Syed Ghulam Mustafa
Regd No. 2211123

1. What do Kleinfeld’s efforts at Siemens tell you about the difficulties of restructuring
organizations?
Answer 1. It's tough to reconstitute the firm as a result of proscribing could cause loss of
profitability, consent of each stakeholder, refinancing, price involved, and so on since it involves
consent of all the stakeholders namely, creditors, employees, shareholders, government, etc.
Kleinfeld’s efforts at Siemens to restructure the organization so as to create it less official
brought him the difficulty to his position and eventually he had to depart his job. This created the
staff to rebel against him. Therefore, one amongst the key difficulties moon-faced was the protest
of trades union. The support of trade union is required.

2. Why do you think Löscher’s restructuring decisions have generated less controversy
than did Kleinfeld’s?

Answer2 The Loscher’s restructuring was less moot as a result of he created it step by step and
also the staff didn't maintain him with the allegation that the workers have placed on Kleinfeld.
Therefore, it's vital to introduce any amendment systematically.

3. Assume a colleague read this case and concluded “This case proves restructuring efforts
do not improve a company’s financial performance.” How would you respond to this
statement?

Answer3. A well-arranged, communicated and well enforced restructuring invariably offers a

positive result. it's the responsibility of the CEO to plan the reconstitute properly and discuss it
with the stakeholders. invite the suggestion then prepare a method to formulate the restructuring.
it's always higher to plan than to default at implementation. There are some triple-crown
restructures that have truly bear some fruits. Therefore, it should be enforced whole heartedly
and with a great deal of planning.

4. Do you think a CEO who decides to restructure or downsize a company takes the well-
being of employees into account? Should he or she do so? Why or why not?

Answer 4. Some restructuring needs the downsize of the organization. Then that call is taken at
the price of workers. That CEO is take into accounting the organization’s well-being and so the
employees, who are human capital of the company, are being ignored. Therefore, the CEO
should always attempt to eliminate the danger of losing job by employees. He or she should
consider employees before taking this decision. If it temporary to get rid of the employees then
applicable compensation ought to run. If it's a permanent one, then compensation should be
given otherwise they might do strikes, and so on so the department should talk over with the
staff.