HRM: Restructuring Strategy and Outsourcing for Public Works Dept

This report presents a business brief analyzing the restructuring of the Department of Public Works. It identifies key issues to consider before designing a restructuring strategy, such as funding, employee leave, operational costs, performance measures, and payroll design. The report explores various restructuring strategies including delayering, verticalization, outsourcing, business process restructuring, virtualization, and starbursting. It also evaluates the advantages and disadvantages of contracting out services, focusing on cost savings, core business focus, quality improvement, and specialization, while also addressing potential risks, employee passion, staffing reductions, and negative perceptions. The report concludes with references and an appendix, providing a comprehensive overview of the restructuring process.

Running Head: HRM 0
HRM

HRM 1
Contents
Issues that Kathleen must consider before designing a restructuring strategy.......................................3
Strategy design to restructure the department of public work................................................................3
Advantages and disadvantages of contracting out the services that has been provided by the
government............................................................................................................................................4
Advantages of contracting out services are:.......................................................................................4
Disadvantages of contracting out the services...................................................................................4
References.............................................................................................................................................5

HRM 2
Issues that Kathleen must consider before designing a restructuring strategy
It is true that before restructuring the department of public work, following issues should be
considered to design the restructuring strategy
 Keep an eye in order to provide the funding because it has been seen that department
is not getting the desired increase in the annual funding.
 Providing the sufficient amount of leave. It is also a non-monetary motivation to the
employees (Bryson, 2018).
 To reduce the operational cost of project.
 Implementing the key performance measures for improving the performance.
 Designing of such payroll that not decreases the motivation of employees. In the case
study, it is founded that when employees are demotivated, it put negative impact on the
morale, performance, and commitment of the employees.
Strategy design to restructure the department of public work
It is true that restructuring comes for various reasons. It involves the purchasing as well as
selling of business or closing the facility due to downturn in business. Whatever is the
situation, professionals form human resource must deal with the issues or problems that is
arising from the events. Professionals can also provide the information related to options of
restructuring, methods for selection of employees in the process of restructuring, payments,
and cost (McManus & Mosca, 2015).
Before the restructuring of strategy, it is required by the manager to create these agendas
where it wants to implement the strategy. There are various types of restructuring strategy
and these include:
 De-layering
 Verticalization
 Outsourcing
 Business process restructuring
 Virtualization
 Starburst

HRM 3
Advantages and disadvantages of contracting out the services that has been provided by
the government
Working in outside of the organization is known as outsourcing. Outsourcing is also known
as the business strategy that moves some organization’s processes, functions, decision
responsibility and activities within the organization. Outsourcing helps the organization to
focus on its core business and creates the competitive advantage.
Advantages of contracting out services are:
 It helps in saving the cost when a function of business is outsourced. Office space
expenses, compensation cost of employees, as well as other costs are eliminated with the
availability of manufacturing setup and work space.
 Outsourcing helps the organization to focus on the some core activities of the
organization that is essential (Schniederjans, 2015).
 It also helps in improving the quality by using the vendors with processes that are
more specialized and expertise.
 It also gives an exposure to the vendor specialized system. Specialization also
provides the efficiency and higher level of quality (Doval, 2016).
Disadvantages of contracting out the services
 Outsourcing can expose the organization with potential risks as well as legal
exposure.
 It may be possible that an outsource employees does not have passion as well as
understanding for the organization.
 Outsourcing also results in reducing the level of staffing. Unless it can be planned
with the help of attrition. If it is not managed properly, it can put the negative impact on the
remaining of all the employees.
 There can also be negative perception regarding the outsourcing. This is required to
be managed through grace and sensitivity.

HRM 4
References
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Doval, E. (2016). Is outsourcing a strategic tool to enhance the competitive
advantage. Review of General Management, 23(1), 157-177.
McDowell, T. (2016). Organizational designs. Retrieved from:
https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2016/
organizational-models-network-of-teams.html
McManus, J., & Mosca, J. (2015). Strategies to build trust and improve employee
engagement. International Journal of Management & Information Systems
(Online), 19(1), 37.
Riggins, R. (2017). Advantages and disadvantages of outsourcing. Retrieved from:
https://smallbiztrends.com/2017/02/advantages-and-disadvantages-of-
outsourcing.html
Schniederjans, M. J., Schniederjans, A. M., & Schniederjans, D. G. (2015). Outsourcing and
insourcing in an international context. United Kingdom: Routledge.

HRM 5
Appendix
(Riggins, 2017)
(McDowell, 2016)