Restructuring Organizations: Alternatives and Costs

Abstract

Restructuring is often used as a means of dealing with uncertainty in an organization's production, processes, or operating environment. Consequently, academics and consultants frequently recommend that bureaucracies adopt more “open” organizations to effectively cope with unpredictable conditions. Although moving to a more “open” structure reflects one course of action, alternatives exist; this paper outlines several restructuring alternatives such as risk analysis, environmental scanning, production and demand‐management. It also examines some hidden costs of restructuring. The conclusion is that restructuring is only one of a variety of organizational tools a manager may use to control uncertainty.