FactsCase Study on

Hi Fashion International

Group- VIII

Sunil Gandewar Tripti Agarwal Vandna Kumari Vibhuti Bahuguna Vikas Goyal Vinkal Sachdeva

Phase I :- Analyzing the Current Scenario

Cost Ineffectiveness

Not Profitable

Core Operation Function

Organization Structure

Co-ordination

RapidGrowth

Young Organization

Lot of Divisions

Phase II :- Alternate Solutions

OrganizationRestructuring

Integration Among Newly

ReducedDivisions

Other Companies(Designer)

Alliance

Challenges…???

Most Affected :-Employees

Phase III :- After Math

• Organization Culture• Compensation• Employee Benefit

• Employee Relations• Responsibilities• Job Insecurity

Change Management…??Internal V External

Restructuring and downsizing

General Process• Downsizing is reduction in the

total number of employees • Downsizing at decline phase• Downsizing is done to reduce

cost of operation• Downsizing is done to conc.

on core competencies• Moving of operations such as

manufacturing to lower-cost locations

• Closure weak business units

Hi Fashion• Reduction in Divisions and

outsourcing of employees• At Growth Phase• To avoid mismanagement

• Core competencies are given away

• Entering into strategic alliance with other companies

• Downsizing across all units

Survivors reaction to downsizing

Emotions, Psychological States and work attitudeAnger Insecurity Perceived unfairnessAnxiety Dissatisfaction RemorseGuilt Low Morale UncertaintyStress Low org. commitment

Behavioral ReactionsAbsenteeism Resistance to ChangeTurnover intention Less effortRisk Aversion Poor performance

Challenges -HR

• Streamlining of senior management

• Integration of operational units at each division

• Coordinating between the external & internal factors.

• Aligning company & HR strategy.

• HR complying with the business partners

Working with the company

• Building trust and faith amongst employees

• Job redesigning & training

Employees shifted

• Ensuring employees same compensation and benefits in transit

• Fit into new work culture

Contd……

Thank You…!!!!