Based on the case’s description, Siemens has a long history. It means that it took for a long time to form the current structure. It is truly global company offering a portfolio of technological solutions in the areas of water, energy, environment, healthcare, productivity, mobility, safe and security. The changing is a big revolution which involves the many departments. The issue of departmentalization is a key consideration in any restructure of an organization. The overall objectives are divided into the specific assignments. The general task cannot be done without the any departments. Another key issue is how to integrate the activities and relationships between various departments. It is associated with the rights, obligations and interests of many parties. Therefore, the changing will confront the hostility and barriers
The factor is that Kleinfeld is a pioneer of restructuring the organization all over the world. He begins to dismiss some department and weigh up the interest. In initial stage, it is natural that Kleinfeld face the more problem and barriers from the overall the world. The solution also differs from the various countries. Therefore, Kleinfeld must spend a long time on understanding and negotiating the situation. In contrast with Loscher’s situation, the Loscher sell off the firm’s underperforming 10-billion-euro car parts unit, VOD. This decision make a big difference, which means the Siemens avoid downsizing and restructure the unit’s operations. The first step in the conflict process is the appearance of conditions that ceate opportunities for conflict to arise. Then the potential for opposition or incompatibility becomes actualized. The stage three is that both sides begin to compete, collaborating, compromising. Kleinfeld exactly are in first two stage. Therefore Loscher’s restricting decisions have generated less controversy than did Kleinfed’s.
It is hasty for this college to conclude like this. Although reducing the size of the workforce has an immediate positive outcome in the huge reduction in wage costs, companies downsizing to improve strategic focus often see positive effects on share prices after announcement. Although the statics shows that its stock price has fallen 26 percent on the European stock exchange since 2008, the background of global finance is depression. In contrast with Siemens, the stock price of France’s Alcatel-Lucent decreases 83 percent. Meanwhile, the long-term mechanistic structure problem is solved. It is believed that the company will recover from the depression instantly. However, companies must reduce negative impacts by impacts by preparing for the post-downsizing environment in advance, thus alleviating some employee stress and strengthening support for the new strategic direction.
Question 4 It is certain that the CEO take a little concern on the well-being of employees. The CEO makes the decisions aiming for optimize the company. the thing that CEO must do is to comfort the current employees to focus on the job.