Business environment today requires companies to adopt reorganization perpetually to remain competitive. The globalization and technological evolution force companies to improve their business practices in order to survive. The changes may be minor, for instance installation of new software or major, such as revamping an overall marketing strategy. Many people consider reorganization as the inability to perform effectively and getting things done due to continuous change (Weidner, 2004). For them, this process shifts the organization from product development and customer support. After the relaxation in global trade barriers, new competitors emerge and new substitute products become available quickly. Following this trend, companies take advantage of new opportunities and perceived competitive advantage. Therefore, better to establish a corporate culture that enables companies to promote the organizational change.
Significant organizational changes, for example, when the change of its overall strategy for success, adds or deletes a primary partition or practice, or wants to change the nature, in which it operates. It also occurs when an organization develops through different life cycles as people should flourish through life cycles. For organizations to develop, they often have to undergo significant change at different stages of their development. That is why the topic of organizational change and development has been widely disseminated in the communications business, organization, leadership and management (Piotro, 2005). Organizations need to survive the sharp decline in profit margins to continue to function and minimize the effects of possible deflation. Therefore, they rely on new strategies for survival, so most likely choose to form alliances and merge with other companies. But whether or not this is not enough, will have to take other measures to prevent the complete closure or bankruptcy.
Sometimes there is no choice but to eliminate some positions whose duties may be distributed, but if the situation continues to worsen and the lack of liquidity increases, eventually the final alternative will be to implement a downsizing in the making. It is true that some companies already reduce cheerfully and irresponsibly without even trying to cushion the impact this may have for their employees, but others if they do their best to avoid laying off workers until it becomes absolutely necessary (Van , 2005).
This paper is aimed at describing an organizational change that our organization is likely to make. This paper is going to change in the company named “DelSol” which was formed on 2009, and within the same year, they achieved the highest growth but all off a sudden the company started to decline. The main reason of this decline was that the company was relying on few large customers who stared to withdraw their capital after some time and because of decline in the market value they were not able to attract more customers. They have had hire many employees when they were achieving success but when they started to decline they decided to go for an organizational change (downsizing). The company afterwards faced so many problems and issues which are discussed ...