2017

Organizational Redesign Process

Figure 1:Cover picture from https://www.eurocontrol.int/news/what-slot

Organizational Structure Redesign for a leading Middle East

Figure 2:Cover picture from https://www.eurocontrol.int/news/what-slot
Aviation services company

Nandita Nair
29/Sep/2018
Contents
Synopsis .................................................................................................................................................. 2
Keywords................................................................................................................................................. 2
Introduction ............................................................................................................................................ 3
Organizational Structure ......................................................................................................................... 3
Organizational Structure Redesign ......................................................................................................... 3
Need for Organizational Redesign ...................................................................................................... 4
As – Is: Identifying Deficiencies........................................................................................................... 5
To – Be: Efficient Structure ................................................................................................................. 6
Red and Blue Ocean Philosophy ..................................................................................................... 6
Red Ocean: Benchmarking .............................................................................................................. 6
Blue Ocean: Selecting the Optimal Organization Design .............................................................. 11
From “As-Is” to “To-Be”: Effective Leadership ............................................................................. 11
Organization Design – Grouping & Linking ................................................................................... 12
Proposed Structure: Groupings .................................................................................................... 15
Proposed Structure: Linkages ....................................................................................................... 16
Design Implications for the proposed hybrid structure.................................................................... 16
Role of Group: Global Corporate Center ...................................................................................... 16
Differentiating the Role of Group and Station .............................................................................. 17
Accountability Matrix .................................................................................................................... 17
Role of Group CEO ........................................................................................................................ 18
Administrative & Functional Reporting ........................................................................................ 18
Implementation Implications ............................................................................................................ 18
Hurdles to Execution – Red & Blue Ocean .................................................................................... 18
Organization Development ........................................................................................................... 19
Organization Culture ..................................................................................................................... 21
Conclusion ............................................................................................................................................. 21
Figures & Tables .................................................................................................................................... 22
References ............................................................................................................................................ 22

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 1

Synopsis
The paper looks at the organizational structure redesign of a leading Aviation services company. The
paper examines in detail the need for redesign and the redesign process to develop the optimal
structure. The paper looks at various available theories and design options to reach this conclusion.
Post building the optimal structure, the paper details the changes that need to be affected to ensure
success of the redesign.

Keywords
Organization Structure, Organization structure redesign, Blue Ocean Philosophy, Competitor
benchmarking, Leadership model, Organization design Grouping models and Linking mechanisms,
Accountability Matrix, Organization Development, Organizational Culture

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 2

Introduction
A major middle east-based Aviation services company, with branches across the emerging economies,
needs to redesign its organizational structure. The company has been expanding rapidly into various
emerging economies of Africa and Asia.

The company has been working in a hub and spoke model and, is now looking to separate into a Group
and Business Units model, both legally and procedurally. The company has to take a decision on an
optimum organization structure that ensures customer centricity, performance driven culture, and
optimal resource management across the globe.

Organizational Structure
An organizational structure outlines the hierarchy within an organization. It defines how activities such
as task allocation, coordination and supervision are directed toward the achievement of
organizational goals and aims.

Organizational structure affects organizational action as it provides a foundation for its policies and
procedures, as well as the decision-making process, and becomes instrumental in shaping the
organization culture.

Many organizations overlook the importance of organizational design. When organizational strategy
changes, structures, roles, and functions should be realigned with the new objectives. An outdated
structure can result in unnecessary ambiguity and confusion and often a lack of accountability.

Organizational Structure Redesign

The last remaining source of truly sustainable competitive advantage lies in what we have come to
describe as “organizational capabilities” – the unique ways in which each organization structures its
work and motivates its people to achieve clearly articulated strategic objectives.1

The best way to shape performance is to ensure proper organizational design at every level of the
organization. Leaders need to understand the concepts and skills involved in designing and aligning
organizations with evolving strategies to ensure maximization of core capabilities.

While organization design is senior managers’ most powerful tools for changing the direction of their
organizations, it can’t work without everyone being on board.2

The Leadership needs to sit down and review the Organization Design options with an open mind to:

• Ensure organization structure is aligned with strategic aspirations

• Ensure an effective structure with clear accountabilities for decisions
• Develop organizational set-ups of Group and Business Units to support global strategies,
enable synergies and deliver optimal service

For the redesigning the structure, we need to look at:

• The Need for redesign: Need analysis for redesign will be based on both strategy and current
deficiencies

1
(Wyman)https://www.oliverwyman.com/our-expertise/insights/1998/may/strategic-organization-design--an-integrated-
approach.html
2
Strategic Organization Design -Training for Change, By Jack Shaw on June 8, 2011, Blog: Training and Development,
managementhelp.org/blogs

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 3

• As-Is Vs To-be: Full scale organizational assessment needs to be done to understand organization
functioning, performance gaps and how performance relates to strategy
• Identifying design criteria: Design criteria will focus mainly on the top layers of the organization
and changes needed for effective leadership
• Optimal design through grouping and linking: Understanding the concepts of Grouping and
Linking, and the models available for deciding optimal organizational structure. We shall also look
at the pros and cons, and methods available to manage the cons.
• Impact analysis:
o Design implications – Assess the design implications and develop strategies for mitigation
o Optimal structure – Decide on a final structure after thorough discussions between
leaders
o Implementation implications – Predict and control implementation implications through
coordinated effort

Chances of failure can be mitigated by planning, close monitoring and constant management of the
implications, through detailed attention to work flows, resources, reporting relationships, business
processes and HR practices.

Need for Organizational Redesign

When to redesign? The decision to redesign an organization comes when there are substantial
problems with the fit between the formal organizational arrangements and the other major
components.

The redesign of the organization structure has become a priority due to:

• Growth: As organizations grow, formal/informal arrangements may get overloaded or

overburdened. As new tasks and strategies are taken on, the formal arrangements may no longer
fit the rest of the organization3

The company has rapidly expanded in the past 5 years to various emerging economies of Africa and
Asia. One-size-fits-all solution cannot be applied here, as the challenges at every location is unique;
while, global aviation policies dictate standardized services across all locations. So there has to be a
synergy between all locations, while handling local issues locally.

• Deficiencies in current design: Performance problems created by gradual emergence of poor

organizational fit

The company has been trying to solve the issue of extra manpower in certain areas of work, and
shortage in others. Also, certain group of workers have had no career progression as there has been
no avenues for their vertical or lateral movement. This has to led to problems at various levels of work.
There has been instances of promotions, where the only change has been in job titles, with no
corresponding change in responsibility or job enrichment.

3 Source: Oliver Wyman: Strategic Organization Design

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 4

As – Is: Identifying Deficiencies
For an effective organization design, five components need to be considered4:

• Leadership – with clear vision & priorities, and cohesive leadership team
• Decision Making & Structure - clear roles, accountability and structure that supports objectives
• People – Performance and incentives aligned clearly to objectives
• Work Processes & Systems - effective and efficient support systems in place
• Culture – with high performance behaviours, adaptability and flexibility

Based on the five components, the organization was evaluated on various symptoms of
ineffectiveness:

Symptoms of Likely Root Causes

Ineffectiveness Leadership Decision Making People Work Culture
& Accountability Processes &
Systems
Lack of
coordination Y Y Y
-Work unfinished
-Isolated teams
Excessive Conflict
- Needless friction
Y Y Y
among internal
groups
Unclear Roles
- Overlapping Y Y
functions
Gaps in skills -
Missing/underutilized Y Y Y
skills or resources
Poor Work flow
- Disruptions Y
- Complex processes
Reduced
responsiveness Y Y Y
- Slow reactions to
environmental shifts
Conflicting
Communications
- Unclear signals to Y
External stakeholders
-Customer complaints
Low staff morale
-Lack of drive Y Y
- Ineffective teams
Table 1:As-Is: Symptoms of Ineffectiveness

The results collated showed that there was indeed a need for a change in design of the organization
structure.

The structure to replace the current one may not solve all the problems, but should be able to resolve
a majority of the highlighted issues, based on the priority for the organization.

4
Source: The Bridgespan Group: Designing an Effective Organization Structure, January 2009; Bain & Company
organizational toolkit and Bridgespan analysis

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 5

To – Be: Efficient Structure
To understand and develop an efficient structure, we will look at Red Ocean and Blue Ocean strategy:

Red and Blue Ocean Philosophy5:

Red oceans represent all the industries in existence today – the known market space. In the red
oceans, industry boundaries are defined and accepted, and the competitive rules of the game are
known. Here companies try to outperform their rivals to grab a greater share of product or service
demand. As the market space gets crowded, prospects for profits and growth are reduced. Products
become commodities or niche, and cutthroat competition turns the ocean bloody; hence, the term
"red oceans".

For Red Ocean, we shall look at competitors and their structures to understand the current
organizational models being practised in the industry.

Blue oceans, in contrast, denote all the industries not in existence today – the unknown market space,
untainted by competition. In blue oceans, demand is created rather than fought over. There is ample
opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant
because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider,
deeper potential of market space that is not yet explored.

In Blue Ocean, we shall develop a structure based on our strategy and stage of development. We shall
strive to manage trade-offs, by building a hybrid structure based on the “best” options to help
organization manage its inherent weaknesses.

Red Ocean: Benchmarking

Competitors and their Organization structures

1. Swissport6

No. of 61,000
employees

FY 2015 -16 Operating

Revenue:
EUR 2.7 billion

Servicing 280 in 48
Airports countries

Figure 3: Swissport Org. structure

5
Reference: www.blueoceanstrategy.com
6
Source: http://www.swissport.com/nc/en/corporate/corporate-profile/

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 6

 2. Menzies Aviation7

No. of
21,000
employees

Turnover:
£1,999.9m
FY 2014
Profit Before Tax:
£25.7m

Servicing
149 in 31 countries
Airports

Figure 4: Menzies Org. Structure

3. DNATA8

No. of
27,500
employees

Revenue:
AED 10,305m
FY 2014 -
15 Operating
Profit:
AED 1,005m

Servicing 131 in 21
Airports countries

Figure 5: DNATA Org. structure

7
Source: JOHN MENZIES PLC, ANNUAL REPORT AND ACCOUNTS 2014
8 Source: https://www.dnata.com/en

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 7

 4. Bangkok Flight Services9

No. of
4,000
employees

Servicing
2
Airports

Figure 6: BFS Org. structure

5. SATS10

No. of
14,500
employees

Turnover: $1,753 m

FY 2014 -15
Operating Profit:
$178 m

Servicing
44 in 12 countries
Airports

Figure 7: SATS Org. Structure

9
Source: https://www.bangkokflightservices.com/home/staff/
10
Source: https://www.sats.com.sg/AboutUs/Leadership/ManagementTeam/Pages/ManagementTeam.aspx

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 8

 6. AH Airport Handling (Milano)11

Figure 8: Milano Org. Structure

7. Philippine Airport Ground Support Solutions Inc. (PAGSS)12

Figure 9: PAGSS Org. structure

11
Source: http://www.airporthandling.eu/who-we-are.asp
12
Source: http://www.pagss.com/our_people.html

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 9

 8. Royal Airport Services Pvt. Ltd.13

Figure 10: Royal Org. structure

13
Source: http://www.ras.com.pk/corporate/management/

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 10

Blue Ocean: Selecting the Optimal Organization Design
Strategic success is a by-product of a well-designed organization, steered by effective senior
leadership teams, and driven by engaged employees. Organization Structure redesign is the process
of constructing and adjusting an organization’s structure to achieve its goals.

Clarifying End results

The objective of the organization redesign is to:
• Align with desired leadership model – Ensure all levels of leadership are aligned and are
capable of steering the changes
• Separate into Group and Business Units - Setting the role for the Corporate centre,
Regions/Business Units
• Define roles and responsibilities - Ensure clear understanding of accountabilities, roles and
responsibilities across the organization
• Achieve the highest efficiency per design

Figure 11: Organization Design objectives14

From “As-Is” to “To-Be”: Effective Leadership

For ensuring Leadership engagement for the organization redesign and building a leadership model,
we use the Leadership Grid15 to identify the activities that need to be Eliminated, Raised, Reduced,
and Created by leaders.

Figure 12: ERRC tool for Leadership

14
Source: Organizational Effectiveness: Organization Design – Oliver Wyman
15
Source: From Blue Ocean Strategy to Blue Ocean Leadership, HBR Webinar by Renée Mauborgne

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 11

The process needs to be done at every level of leadership to ensure proper alignment.

The Key Leadership Activities, along with the time and effort required for the activities needs to be
mapped for every level. The activities then need to be assessed through the ERRC model to ensure
the right leadership profile for the organization.

Leaders at every level needs to ensure focus on strategy, vision, and direction, and should be trained
empower their teams to deliver results.

The right leadership can now steer the organization through the structure redesign process.

Organization Design – Grouping & Linking

Organization Structures have two components: Grouping and Linking.

An optimal structure balances differentiation (through grouping) with integration (through linking)16.

Grouping
• How individuals, jobs, functions or activities are differentiated and aggregated

Though Grouping optimizes information flow within the group, but creates barriers with other
groups

Functional

Geographic
Grouping Models
Program

Matrix
Figure 13: Grouping Models
Linking
• Mechanisms of integration used to coordinate and share information across groups

Linking enables leadership to provide guidance and direction across the organization.

Liaison

Linking Mechanisms
Integrator

Dotted
Figure 14: Linking Mechanisms
Grouping decisions are usually the essence of the change in structure (new units or reconfiguration
of old units). Changes in hierarchy and job roles comes through Grouping decisions. Usually, most
organizational problems are assumed to be caused by having the wrong grouping, but could also be
because of incorrect or complicated linking17.

We now need to look at the possible grouping models and linking mechanisms options available to
the company for redesigning its structure:

16
Source: Designing an Effective Organization Structure - January 2009, The Bridgespan group; Strategic
Organization Design: An Integrated Approach, Mercer Delta Consulting (2000)
17
( The Bridgespan Group, 2009): Bridgespan’s organization diagnostic data reveals that coordination and linkages are the
#1 structural problem facing nonprofits

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 12

Grouping: Functional Model
Organized around key functions or departments

Pros Cons Way to manage Cons

Functional excellence – Functions can work at counter- Ensure clarity of vision and
develop depth of skills in a purposes with different priorities
particular function or priorities and measures
department Cascade organizational goals
Promote functional Focus on function rather than to measurable departmental
innovation, scale and lower overall organization and individual’s goals
costs
Easy understanding of core Processes across functions can Ensure key work processes are
responsibilities, and have break down; individuals defined, including roles across
accountability unclear on their role departments
Cross-functional decisions get Make decision-making explicit
pushed up for CEO resolution
Table 2:Functional Model -Pros & Cons
Functional model works well for smaller organizations, where there are no large geographic areas to
be managed, or has a single program/product focus.

Grouping: Geographic Model

Organized around major geographies

Pros Cons Way to manage Cons

Allows greater customization Requires strong skills of Focus on hiring, training, and
of programs or services by leadership, particularly of best practice sharing
region regional GM
Enables clear focus with Leads to functional duplication Create hybrid structure for
accountability for results by and potential loss of control support functions
geography
Enables focus on geographic Work processes and output Determine if any key processes
funding sources (e.g., services) may differ should be done in common
across regions way
Creates confusion about who Make decision-making explicit
makes decisions
Organization becomes Develop and reinforce
heterogeneous; not a unified elements of common culture
culture
Table 3:Geographical Model - Pros & Cons
Geographic model works well for large organizations with multiple programs/products, or spread
over large geographical region. With multiple geographies, local regulations, market economics and
other local factors become important for business strategy achievement.

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 13

Grouping: Program/Product Model
Organized around major program/product

Pros Cons Way to manage Cons

Job depth - Promotes depth of Requires strong skills, Focus on hiring, training, and
understanding within a particularly program Heads best practice sharing
program area
Promotes program innovation Leads to functional duplication Create hybrid structure for
and potential loss of control support functions
Enables clear focus with Difficult to coordinate Develop work processes and
accountability for program common customers across systems that enable
results programs management and tracking of
Customers
Enables focus on funding Organization becomes Develop and reinforce
sources which are often heterogeneous; not a unified elements of common culture
program oriented culture
Table 4:Program Model - Pros & Cons

Program/Product model works best when product/program are very different from one another
(e.g. different customers, economics, etc.), along with different resource requirements, and these
factors are similar across geographies.

Grouping: Matrix Model

Organized to manage multiple dimensions

Pros Cons Way to manage Cons

Manage multiple Unclear decision-making and Need clarity around roles and
organizational dimensions accountability decision-making
simultaneously
Individuals unclear who they Clear definition of
report to management responsibilities
Accountability for results is HR Performance Management
diffuse System that reinforces working
together
Table 5: Matrix model - Pros & Cons

In this model, it is of critical importance to decide the priorities and focus on organization core
competence, and manage the tradeoffs.

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 14

Linking Mechanisms: Liaison Roles
Coordination by trusted and respected individuals – The relationships are clearly and correctly
defined

Linking Mechanisms: Integrator roles or projects

Managers not supervising but ensuring that processes are executed smoothly across groups, or use
of projects – The control is not absolute as the employees do not report directly to the manager

Linking Mechanisms: Dotted lines

Linking individuals within functions who are distributed in the organization – This provides access to
specialists without supervisory control over them

Guidelines for Effective Linkages

• Linking should be to stimulate collaboration and this should be ensured during the design of
key leadership roles
• Management processes and Authority matrix should be used as a guideline for linkages;
always ensure the linkages will allow communication flow throughout the organization
• External interfaces also need to be considered while deciding linkages

Proposed Structure: Groupings

The Aviation services company has decided to have a programmatic focus combined with a
functional model for the Group and a Geographic model for the Business Units.

Functional Model Geographic Model

Group CFO GM (Station)

Finance Manager Finance Manager Finance Manager Lounges Manager

(Corp. Budgeting) (Station) (Station) (Station)

Program Model

Group COO

Ground Services Strategic Resource

Director Planning Director

Figure 15: Proposed Structure Grouping

This structure ensures advisory control of the Group over the Business Units as well as gives local
stations the dynamics to modify business as per local conditions. The program model allows for

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 15

ensuring standardized services as per aviation regulations at all locations and best practices
information flow.

Proposed Structure: Linkages

Figure 16: Proposed Structure: Linkage Mechanisms

Design Implications for the proposed hybrid structure

Pros Cons Way to manage Cons
Unified culture Unclear decision-making and Clarify Role of Group & Station
accountability
Sharing of best practices Overlapping boundaries of Accountability Matrix
across stations authority and responsibility
Dynamic and Agile leading to power struggles Role of the Group CEO

Corporate centre for driving Individuals unclear who they Define Administrative and
strategic initiatives report to Functional Reporting

Focus on critical operations of Accountability for results is Performance Management

each region and product diffuse system
Advantage of having local and Cascading goals
global knowledge repository
Global and local support
Table 6: Hybrid structure - Pros & Cons

Role of Group: Global Corporate Center

Lets us now look at the issues with a global corporate center and the methods to manage them18:

Issues with Global Corporate Centers

• Unclear differentiation of responsibilities - Ensuring center’s tasks and duties are not
replicated at the business units

18
Source: Reinventing the global corporate center: Pascal Baumgarten, Suzanne Heywood; McKinsey & Co., 2012

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 16

 • Value creation - Economies of scale tend to be erased by additional costs and reduced
flexibility
• Communication & Collaboration - Center’s inability to make connections between businesses
managed in silos leads to slow decision making, not fully exploiting organization’s global
scope, and people not having access to right knowledge and skills

Managing the issues

The best way to manage the issues is by defining clearly the mandates for Headquarters, Support
Services and Centers of Excellence.

Headquarters
• Upholding Organization values
• Developing Corporate strategy
• Managing portfolio of business in line with the values and strategy
• Managing the performance and health of company via continuous dialogue with Business
Units

Support/Shared Services
Supply world-class low cost “backbone” processes and functions to internal customers, including HR,
Finance, Supply chain, Legal, Communications, Marketing and Sales.

Centers of Excellence
• Expertise centrally for use of all business
• Link and encourage collaboration between Business Units, especially on operational
efficiency, innovation or brand management

The staffing at the Global Corporate Center is also important, as it requires employees with right
skills and knowledge to guide the organization through its business strategy, as well as be able to
communicate effectively across the organization.

Differentiating the Role of Group and Station

Group Station
Strategy formulation Strategy execution
Strategy Execution Monitoring Adjusting strategy to local market needs
Resource Planning Resource Allocation
Global Business Development Local infrastructure development
Operational results Operational management
Functional specialists Geographical client/account management
Table 7: Role of Group & Station

Accountability Matrix
Accountability matrix helps in avoiding duplication of tasks performed at global, regional and country
levels.

We identify the key decisions and define clear accountability, so that decision making is explicit and
not removes the room for ambiguity. The decision parameters are set and the roles for Request,
Recommend, Review, Consult, Approve and Inform are decided.

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 17

Role of Group CEO
The Group CEO will need to ensure that excessive internal preoccupation and losing touch with the
marketplace does not take place19. The main focus of the Group CEO would be:

• Keeping the balance of power

• Ensure a shared-power system that depends on a strong individual to arbitrate between his
power-sharing subordinates
• Identify and protect the weak dimension in the organization

New behaviors and culture (informal organization arrangements) that supports the new structure
needs to be encouraged. Strife that may arise from new structure needs to be managed, and Group
CEO has to ensure any internal conflict is secondary to maintaining effective external relationships.

The Group CEO should also ensure training and information flow of changes happen across the
organization, so that the leadership and employees are ready to adapt to the changes.

Administrative & Functional Reporting

The Administrative and Functional reporting needs to be clarified for all job roles to ensure no conflict
of functional or supervisory nature. Poor/unclear reporting relationships leads to conflict and unclear
expectations and goals. Performance of job holder becomes a direct casualty of this ambiguity.

The reporting relationships need to be explicitly defined, and Performance Management system has
to record the proper structure. The system has to be attuned to the new structure and help in
identifying both performance gaps and superlative performance.

• Administrative Reporting – Appraiser

• Functional Reporting – Reviewer

Figure 17: Reporting Relationship

Implementation Implications
We need to now analyze the hurdles to execution and devise methods to counter them to ensure
successful transition.

Hurdles to Execution – Red & Blue Ocean

Companies often have a tough time translating thought into action whether in red or blue oceans20,
where:

19
Reference: ORGANIZATIONAL STRUCTURE: Problems of Matrix Organizations, By Stanley M. Davis and Paul R. Lawrence,
HBR MAY 1978 ISSUE
20
Reference: (https://www.blueoceanstrategy.com/tools/four-hurdles-to-strategy-execution/)

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 18

Red Ocean: Represents expected reaction to change; perceived wisdom on effecting change

• Cognitive hurdle – Organization wedded to status quo

• Resource hurdle – Greater the change, higher resource requirement
• Motivational hurdle – Unmotivated staff
• Political hurdle – Opposition from powerful vested interests

Blue Ocean: Represents a significant departure from the status quo; implement tipping point
leadership - Builds on the rarely exploited corporate reality that in every organization, there are
people, acts, and activities that exercise a disproportionate influence on performance.

• Cognitive hurdle – Overcome by Engagement and Buy-in

• Resource hurdle – Identify and redirect resources from cold spots to hot spots (hot spots are
areas where resource requirement is higher for overcoming obstacles, and cold spots are
areas where resource requirements are low)
• Motivational hurdle – Identify and motivate key players and clearly elucidate rationale for
change
• Political hurdle – Clarify expectations and align employee actions with structure; ensure Job
descriptions and performance goals are linked and agreed.

It is extremely important to ensure that the change process is seen as Fair.

Organization Development
Organization development can be used to overcome the hurdles. The planned ongoing efforts shall
ensure talent management practices support the transition.

The various activities planned/undertaken to ensure successful organizational restructuring in the

company are:

Phase 1
• Manpower plan

The manpower requirement was studied and finalized as per the cost allocation and budget analysis.
The existing roles were detailed in detail to ensure restructuring of roles as per the new design. The
common and unique tasks of roles have been mapped. Common roles across organization will have
common job task tasks along with location specific unique tasks

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 19

Phase 2
• Job Descriptions

Job Analysis has become important as job changes have happened due to changes in structure, and
new roles created as a result of the changes into Group and BU. Job Analysis Questionnaire has been
used to study the new jobs and job changes.

Job Descriptions have been prepared for unique positions. This exercise has also been used to revise
Job Descriptions of common roles across Business Units for the express purpose of management and
assessing performance across the organization.

• Competency framework

Ensure review of competency dictionary as per the changes. Competencies and the desired level of
proficiency has to be mapped for all roles.

• Grading structure & Job pricing

Job Leveling has been done to ensure alignment of jobs in different geographies, and creating a
framework after the structural change. Job evaluation has been done to determine, define and weigh
compensable factors and identify relative worth of unique jobs, and grouping jobs of similar nature
and impact into job families. The current grading structure has been revised to suit the changes in
organization structure.

Internal & External Benchmarking: Match Job evaluation with labour worth/ demand and supply, and
determine pay rates for jobs as per the new structure.

Phase 3
• Enhancing Performance Management system

Ensure individual KRAs as per role and competency as per job family. Ensure Training needs/ Job
rotation needs/ Level of competency determination to decide on suitability for current/higher role.

• Succession Planning

Identification of critical positions as per new structure and shortlisting potential candidates for
critical positions for building talent pool.

Measures of effectiveness
The measures of effectiveness need to be defined to ensure success of transition to a structure as
per the business need:

• Retention of High Performers

• Satisfaction level

“Right Person for Right Job”

• Job Redesigns to restructure elements including tasks, duties and responsibility of a specific
job in-order to make it more encouraging and inspiring for employees21
• Competency model maps the knowledge, skills, abilities and behavior for successful
performance

21
Reference: Job Redesign - Meaning, Process and its Advantages, https://www.managementstudyguide.com/job-
redesign.htm

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 20

 • Employee awareness of changes in roles or responsibilities through communication, and every
employee and two-level superiors have access to role and Job descriptions.
• Recruitment and Selection should be based on the new Job Descriptions and competency
model

Organization Culture
Organization change efforts mainly fail because of a lack of understanding about the strong role played
by culture, or the informal organization. Strategic values paly as much importance as mission and
vision.

A network of teams22: Any form of organization is only a means and should never become an end in
itself.

Figure 18: Organizations of today - A network of teams23

Conclusion
Organizational structure redesign is a massive exercise, but a well-executed redesign pays off quickly
in the form of better-motivated employees, greater decisiveness, and a stronger bottom line24. It is
imperative that the organization communicates the importance of the need for redesign, get
leadership buy-in for the exercise and ensure employee skills and capabilities are built to handle the
changes.

Performance need to assessed not just at the individual level, but at team, Business Unit and
organizational level to ensure that the structural changes remain on the right track.

22
Source: Organizational design: The rise of teams, Tiffany McDowell, Dimple Agarwal, Don Miller, Tsutomu Okamoto,
Trevor Page; Deloitte, February 29, 2016
23
Source: New Research Shows Why Focus on Teams, Not Just Leaders, Is Key to Business Performance, by Josh Bersin,
Deloitte Human Capital Trends 2016
24
Source: Getting organizational redesign right by Steven Aronowitz, Aaron De Smet, and Deirdre McGinty; McKinsey
Quarterly, June 2015

ORGANIZATIONAL REDESIGN PROCESS | Aviation Services 21

Figures & Tables
Figure 1:Cover picture from https://www.eurocontrol.int/news/what-slot ______________________________ 0
Figure 1:Cover picture from https://www.eurocontrol.int/news/what-slot ______________________________ 0
Figure 2: Swissport Org. structure ______________________________________________________________ 6
Figure 3: Menzies Org. Structure _______________________________________________________________ 7
Figure 4: DNATA Org. structure ________________________________________________________________ 7
Figure 5: BFS Org. structure ___________________________________________________________________ 8
Figure 6: SATS Org. Structure __________________________________________________________________ 8
Figure 7: Milano Org. Structure ________________________________________________________________ 9
Figure 8: PAGSS Org. structure _________________________________________________________________ 9
Figure 9: Royal Org. structure _________________________________________________________________ 10
Figure 10: Organization Design objectives _______________________________________________________ 11
Figure 11: ERRC tool for Leadership ____________________________________________________________ 11
Figure 12: Grouping Models __________________________________________________________________ 12
Figure 13: Linking Mechanisms ________________________________________________________________ 12
Figure 14: Proposed Structure Grouping ________________________________________________________ 15
Figure 15: Proposed Structure: Linkage Mechanisms ______________________________________________ 16
Figure 16: Reporting Relationship _____________________________________________________________ 18
Figure 17: Organizations of today - A network of teams ____________________________________________ 21

Table 1:As-Is: Symptoms of Ineffectiveness _______________________________________________________ 5

Table 2:Functional Model -Pros & Cons _________________________________________________________ 13
Table 3:Geographical Model - Pros & Cons ______________________________________________________ 13
Table 4:Program Model - Pros & Cons __________________________________________________________ 14
Table 5: Matrix model - Pros & Cons ___________________________________________________________ 14
Table 6: Hybrid structure - Pros & Cons _________________________________________________________ 16
Table 7: Role of Group & Station ______________________________________________________________ 17

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