Reference no: EM133050139

A company that is currently maintaining its accounts manually is installing accounts software so that all its accounts transactions can be done digitally. This will provide greater speed, accuracy, efficiency and productivity. However, this initiative would also result in downsizing the Finance Department where the current strength of 35 employees, mostly in the age group of 45 - 60 years, is expected to reduce down to 20 employees only.

This initiative is led by the Chief Finance Officer (CFO) of the company who is a young, very competent finance professional. He has an extrovert, extremely organized and conscientious personality but is a very results-oriented individual who has little tolerance for staff who are inadequate in performance or who cannot adjust to change.

The firm which has a history of 78 years and is a reputed and successful industry leader, believes in high ethical operating standards. It is a well-established, traditional, masculine, bureaucratic, hierarchical organization focused on the long term. There are 32,000 employees spread in different areas and they work mostly in silos with little cross-functional interaction. Most work individually instead of teams in a very competitive internal culture that is not indulgent but which requires strict compliance of rules and regulations.

Assume you are the HR Manager of the company and have been asked by the CEO to assist the CFO in bringing about this organizational change. Considering the CFO's personality and the culture of the organization,

1) Describe what possible organizational, technological, cultural, HR or other challenges are going to be faced by the current workforce in the Finance department.

2) Explain in detail the steps that you would take to restructure the Finance department and ensure that the organizational transformation is smooth and successful.

3) Elaborate how you will ensure that the staff retained in the department after the restructuring is motivated, committed and engaged.