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This report is to analyze the SWOT of the company, the pros and cons of restructuring Computime Ltd. by adding SBUs, the perceived cost center, building up the Human Resource function and ways to assist Bernard Auyang in the decision of restructuring Comp

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1.0 Introduction 1.1 Aim This report is to analyze the SWOT of the company, the pros and cons of restructuring Computime Ltd. by adding SBUs, the perceived cost center, building up the Human Resource function and ways to assist Bernard Auyang in the decision of restructuring Computime Ltd. 1.2 Authorization This report has been authorized by Bernard Auyang, President of Computime Ltd. on 15th September 2005 for his decision making of restructuring the company. 1.3 Background Computime was founded in 1974 in Hong Kong by Mr Ho Auyang. It is a global technology and manufacturing company that provides innovative automation and control solutions to their customers in the industrial, commercial and consumer markets. Headquartered in Hong Kong, Computime operates more than a dozen design, manufacturing and sales facilities in Asia, Europe and North America. With a strong workforce, they design, manufacture and distribute products and systems with an objective to make people's lives safer, more productive and comfortable. (Computime: Company Profile) 1.4 Sources of Information Resources are found from books, websites and journals. 2.0 SWOT 2.1 Strength 2.1.1 Quality * Quality Awards * Six Sigma Manufacturing standard * Lowered manufacturing costs and improved quality of products * Performed tests on products * Best global practices * Exceed customer's quality standards * Total Quality Management (TQM) * Expectations of its customers * Suppliers quality and delivery performance suppliers Computime has received many quality awards due to its continuous effort in producing quality products. The practice of Six Sigma Manufacturing Standard, the commitment of Total Quality Management (TQM have also lead to high quality products. Furthermore, new products are built according to the quality and expectations of its customers. Besides, vertically integrated plant has lowered the manufacturing costs and improved the quality its products. All these allow Computime to excel in its engineering, manufacturing, testing and supply chain management against the other global competitors. 2.1.2 Reputation * Largest OEM of electronic equipments * Computime is globalized * They have demanding customers Based on the article, ...read more.


All these threats will actually lead to fall in sales in Computime. 2.5 The Problems during Restructuring 2.5.1 Financially If an organization were to restructure or to add SBUs, the first step to be taken will be the adjustment of the organization structure. Whether there is addition or reduction of any departments or SBUs, the legal works in each department such as bank loans will be affecte. For instance, if a new department (SBU) is created or added into the organization structure, the organization will need to prepare new finance arrangements and law documents for the SBU. As a result, all this legal transactions with the banks or any other financial subsidiaries will involve high cost (Financial issues: Will Restructuring Save Us Money?). Also, legal fees will be paid to law firms to manage all the relevant transactions. These legal fees will take up a large proportion of the expenses as these legal actions are complicated but not simple ones (Funding the Strategic Restructuring Process: Funding a Strategic Restructuring Effort). They cannot be settled immediately but will definitely need a long period of time in order for the documents to be processed and approved by the law and also by the government. 2.5.2 Human Resource When there is a restructuring in an organization, the human resource of the company will be seriously affected. Either some employees will be made redundant, or some new employees will be hired. All these will lead to redundancies and also "resource-allocation-slack" (Human Resources: Recruitment during Times of Transition). Problems will arise when it comes to hiring new employees. For instance, if the Human Resource Department does not perform a good job in allocating new staff, efficiency and effectiveness of the work performance of the organization will certainly be affected. Furthermore, when more SBUs are introduced into the organization, the new manager for each SBU will be extremely important as all the future decisions will be made by these new managers. ...read more.


You can explain to your employees the tangible benefits of recruiting to the company as a whole. For example, hire world renowned motivational speakers or current successful employees to boost their morale effectively. Also, you can invite your employees to a welcome event for new hires. For instance, you can enlist some current employees as mentors or buddies for these new recruits. Try to do everything you can to encourage current employees to feel involved in the recruiting process, in case they should feel subject to the arbitrary whims of management. Another method is to organize holiday retreats for the employees. An all expense paid retreat together is definitely going to help the employees to realize their importance to the organization. This way, they will perform more efficiently and effectively in their work. 3.5 How to Regain Organization Image Restructuring is never good for a firm's image. As mentioned in the findings, the public may think that the reason that your organization is being restructured is due to financial difficulties. We recommend that your organization to hold press conferences to inform the public that the restructuring process is to improve the organization's efficiency in the future. Apart from that, you can also release financial reports to shareholders, investors and the public to regain their confidence in your organization. This way, shareholders and investors will not be affected by the gossips and continue to support your organization. 4.0 Conclusion After all the research done by us, we strongly recommend you to restructure your organization despite the huge disadvantages that will strike your organization in the short run. We believe that your organization is strong enough to overcome the difficulties and problems during restructuring. In addition, Computime will progress more efficiently and effectively after restructuring. Also, your organization will be more cost efficient and this allows higher profit margin. In fact, by adding more SBUs, decisions will be made quicker. This allows your organization to keep up with the increasing sales and competition in the future. As a result, your organization will gain high profitability and better performance in the long run. 5. ...read more.

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