Change Management Essay: Restructuring Based on Redundancy in the EU

2021-07-19 11:46:37
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Wesleyan University
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Between the years 2002 and 2010 the European Union was hit by a significant financial crisis and recession which has led to several layoffs in the job sector. At the same time, while millions of jobs and losses have been reported in EU countries, prosperous companies are providing stiff competition from emerging markets. As of 2012, the situation required a change management strategy, and in response, the European Union mandated the European Commission to propose a report on the Restructuring in Europe in 2011 in anticipation of further and similar changes in economic conditions ("Restructuring - Employment, Social Affairs & Inclusion - European Commission", 2011.)

The job sector most affected by redundancy in the EU countries was the automotive business. The EU Restructuring Monitor announced that 160,000 jobs had been lost in less than two years between 2008 and 2010. Companies such as Peugeot and BMW were among those affected. However, some had taken measures to cope with this issue. Relocation and outsourcing were two significant forms of restructuring. What the executives of some of the vehicle makers did was provide a platform for which workers would usually transfer with allowance packages. However, the report was hampered by firm size bias, and this would affect the first process of Noers model: getting the implementation right (Cameron & Green 2015). The report should have included even small companies with less than a 100 employees.

The report mentions early retirement as a strategy to cope with job loss. Again, the numbers are represented on a large scale involving companies. Employee needs at the individual level are barely mentioned. Companies such as KLM-Air France and countries are encouraged but what small-scale enterprises? On this respect, it should have had something like a basic package for individuals going for early retirement across all EU countries. Emotional needs are essential and form Noers second step.

The whole article is all about anticipating the future, and it does a fantastic job at it. For example mentioning such as global warming and alternative energy sources and identifying companies investing in the same is a great way to put the future in mind. The general perspective of the report from a macro level will not sideline the individual. The last step in Noers model is embedding the change- introducing psychological contract with employees. Some workers have been laid off and replaced by machines partially or wholly operated by people. In some companies, there was initial resentment, but company policies have encouraged an excellent working culture across the EU. The workers though could have been consulted more on how to improve morale.

References

Cameron, E., & Green, M. (2015). Making sense of change management. A Complete Guide to the models, Tools, and Techniques of organizational change, Cogan Page Limited, UK.

Restructuring - Employment, Social Affairs & Inclusion - European Commission. (2011). Ec.europa.eu. Retrieved 28 October 2017, from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0ahUKEwjTxaXth5TXAhUE1hQKHQ5YBLgQFgg3MAM&url=http%3A%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3FdocId%3D8891%26langId%3Den&usg=AOvVaw1B-rM86C6o3cQPxXrjOTvK

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