Principles of Managing
Reorganisations
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Principles of Managing Re-organisations
Published 24/06/2011
Contents:
1.Introduction:
2.Principles:
3.Key Stages of a Change / Restructure
4.Statutory, Legal and Corporate Requirements:
5.Planning and Managing the Change / Restructure (Stage 1 – 7)
Overview of a Restructure (Stage 1 – 3)
Overview of a Restructure (Stage 4 – 7)
5aStage 1 – Decide the outcomes you want to achieve
5bStage 2 - Decide the structure or change required to achieve the outcome(s)
5c Stage 3 – Authorisations required to adopt and implement the change / restructure
5d.Stage 4 – Processes you need to go through to implement the change / restructure
Step 1 – Restructuring Project Plan
Step 2 – Consultation on the Proposed Change / Restructure
Step 3 – Job Role Profile
Step 4 – Job Evaluation
Step 5 – Assimilation
Step 6 – Selection Criteria
Redundancy Payment Approval Form
Step 7 – Redundancy Notification
Early Warning:
5d. (i) Assimilation
Assimilation - Flowchart
5e.Stage 5 – Updating Management Information
5f.Stage 6 - Action required to manage and redeploy staff displaced as a result of the change / restructure
Redeployment - Flowchart
6.Transferring Posts to a different Team, Section, Department
Transferring Post(s) to a different Team, Section, Department - Flowchart
1.Introduction:
This documentis a guide that outlines the principles for managing the effective completion of restructures and covers redundancies, assimilation, redeployment, and transferring post(s) to a different team/section/department. The principles, at times, allow you to use your discretion to ensure that the desired outcomes are achieved.
2.Principles:
You are responsible for making sure that the following principles of reorganisations are met by:
- managing the changes in a fair and equitable manner
- undertaking a business and employee relations risk assessment
- taking appropriate action to reduce the risks identified to a manageable level
- knowing your limitations and getting appropriate advice if in doubt
- drawing up a project plan and delivering within the timescales
- completing a predictive equality impact assessment
- ensuring minimum disruption during a restructure by:
- managing the change process with sensitivity and showing empathy and understanding to those affected by the change
- ensuring full and open communication throughout the period of the restructure
- ensuring meaningful and regular consultation with all staff affected and the Trade Unions
- where redundancies are proposed, fair and consistent application of the selection criteria
- considering whether reduction in staff numbers could be made without the need for redundancies via:
- natural wastage or phasing the reduction over a period in order to maximise the opportunity for natural wastage
- redeployment to other parts of the organisation
- reduction or elimination of overtime
- shorter contractual working hours
- replacing agency workers with staff at risk
- ensuring that all statutory and legal requirements are met, including consultation with trade unions and staff.
3.Key Stages of a Change / Restructure
Stages / Considerations- Decide the outcomes you want to achieve
Is the change linked to the corporate aims and objectives of the Council or operational service plan?
Is the change driven by a LEANER service review?
Is the change driven by external factors, such as withdrawal of funding or internal factors such as budgets?
- Consider what structure or change is required to achieve the outcome(s). Discuss and consult with staff regarding proposed restructure / change
Discuss these proposals with DMT,Director and Cabinet Member (as necessary). Consult with the trade unions and arrange consultation meetingswith staff prior to preparing the final report
- Authorisation required to adopt and implement the change
Does the change impact on other departments and therefore requires approval of both department Directors? If yes, discuss the change with appropriate manager.
Does the change require approval of a cabinet member?
Does the change need to be approved by LEANER or CMB?
Finalise report and complete a Predictive Equality Impact Assessment, which can be obtained from Martin Garnar, Equalities Officer.
- Processes you need to go through to implement the change
Changes that involve new posts or a reduction in numbers of staff – decide the selection processes
Developing Job Profiles and Job Evaluation
Assimilation and Redundancy Selection
- Updating Management Information
Updating SAPHR & MI Portal with the change(s)
Changing the budgets to reflect the change(s)
- Action(s) required to manage and redeploy staff displaced as a result of the change
Training, developing and up skilling displaced staff
- Review and evaluate the change
Was the change implemented within timescales?
4.Statutory, Legal and Corporate Requirements:
It is your responsibility, with the support of Human Resources to ensure that the following statutory, legal and corporate requirements in a restructure/redundancy situation are met:
Requirement / Action(s) / By Whom / TimescaleRisk Assessment / You must undertake a business and employee relations risk assessment of the change / restructure / Managers / Stage 2 – early stages and prior to implementation of the change / restructure
Forward Plan / You must contact the Democratic Services Team to arrange for details of the restructure to be included in the Council’s Forward Plan for all Key Decisions / Manager
For further guidance contact the Democratic Services Team / At least one month in advance of the decision been taken to implement the change/restructure
Equality Impact Assessment / You must complete an Predictive Equality Impact Assessment - (EQIA) for all restructures, which is obtainable from the Equalities Officer. Upon completion you should send the Assessment to the Equalities Officer / Manager
(Contact the Equalities Officer on ext. 3113 for additional guidance or support) / Stage 3 –the EQIA must be completed and attached to the appropriate reportbefore it is sent to the Director for approval
Consult with Workplace Representatives (trade unions) / Consultation must start in good time and at least:
- 30 days before the first redundancy where there are 1 to 99 proposed redundancies over a 90 day period
- 45 days in advance where there are 100 or more proposed redundancies
Provision of Information / Provide trade unions with written details of the change / restructure / Manager / Stage 2 – prior to implementation of the change / restructure
Consultation with staff / Group meetings with staff affected to explain the rationale for the change / Manager / Stage 2 – early stages of change and prior to implementation
Collective Redundancy Consultation / If there are plans to make 20 or more employees redundant across the Council within a 30-day period (a collective redundancy situation) the authority must notify the Department for Business, Innovation & Skills (BIS) / Manager – provide HR with the number of all proposed redundancies
HR inform BIS of number of redundancies across the Council / Stage 2 – prior to implementation of the change / restructure
Individual Redundancy Consultation / You must consult with employees individually / Manager / Stage 6 – after the redundancy selection process is completed
Suitable alternative employment / The Council has a statutory obligation to offer employees suitable alternative employment where it exists / Manager with the support of
Human Resources / Stage 6 – after the redundancy selection process is completed
Time off to attend interviews and training / Displaced staff are entitled to a reasonable amount of time off work during notice period to:
Receiving training to help them find another job in the council or externally
Complete applications
Attend Interviews / Manager / Stage 6 – after employee has received his / her redundancy notification
If you fail to meet the statutory requirements, affected employees may claim a protective award or unfair dismissal in an employment tribunal
You can find detailed guidance on the Corporate, Statutory and Legal Requirementsin relation to restructures, involving redundancies and guidance on the organisational transformation framework by using the links Organisation Transformation Framework.. There is also information on managing the consultation process with staff and trade unions and meeting the statutory requirements in the ACAS Advisory Booklet- Redundancy Handling.
5.Planning and Managing the Change/Restructure (Stage 1 – 7)
The flowchart on pages 7 – 8 outlines the stages of a change / restructure, including the actions that you will need to take, and the timescales for completing those actions.
Your performance review will include an assessment of your ability to complete the change / restructure within the timescales specified in the flowchart and your project plan.
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Principles of Managing Re-organisations
Published 24/06/2011
Overview of a Restructure (Stage 1 – 3)
Overview of a Restructure (Stage 4 – 7)
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Principles of Managing Re-organisations
Published 24/06/2011
5aStage 1 – Decide the outcomes you want to achieve
Clearly define the outcome(s) of the change or restructure which should include details of:
- what you are trying to achieve
- why you are proposing the change(s), i.e. the rationale
- how the outcome(s) of the change or proposal(s) are aligned or linked to the corporate values of the Council
The change/restructure should ensure that you have the right people, with the right skills, aptitude and competencies, in the right jobs.
In the case of a LEANER service review you should seek clarification of the rationale for the proposals from the project lead. You should also arrange to discuss your proposal with Human Resources at this stage.
5bStage 2 - Decide the structure or change required to achieve the outcome(s)
Once you have decided the structure or change(s) required in order to achieve the outcome it is recommended that you discuss this with the trade unions.
Consultation with the trade unions must start in good time - when redundancy proposals are in their formative stage - and at least:
- 30 days before the first redundancy where there are 1 to 99 proposed redundancies in a 90 day period
- 45 days in advance where there are 100 or more proposed redundancies
Consultation does not have to end in agreement, but it must be meaningful, genuine and carried out with a view to reaching agreement, including:
- ways of avoiding the redundancies
- minimising their effect
- limiting the effect on those dismissed.
Ideally youshould hold group consultation meetings with staff affected to outline the rationale for the change / restructureand answer any questions that staff may have about the proposal. Where group meetings are not possible you should arrange to communicate the proposals to staff by letter.
5cStage 3 – Authorisations required to adopt and implement the change/restructure
The Council’s Constitution outlines the scheme of delegation regarding who is able to authorise decisions. This includes decisions to change/restructure teams and services. It is therefore important that you understand the following:
Operational Decisions – these will include the restructuring of individual teams and divisions within a specific department and can be authorised by the Director of that department.
Portfolio Decisions–these will include departmental restructures and require the authorisation of the appropriate Cabinet member. Departmental restructures are major restructures involving changes to the overall structure of an individual department.
Corporate Decisions – these will include changes to the Council’s departmental structure and will require approval by Cabinet. Restructuring decisions that may have an impact on the provision of services to the local community or will involve the provision of a service in a different way e.g. outsourcing may also need to be taken as a Corporate decision. You should always refer to Democratic Services if you think that your change / restructure is a Corporate Decision and they will provide you with specific advice.
You should also be aware of the difference between a key and non-key decision.
Key decisions: These are proposals or decisions involving expenditure or savings totaling £250,000 or above and/or that will involve a significant impact across one or more wards. These decisions will require the production of a formal Delegated Action Report and can be taken either as an operational, Portfolio or Cabinet decision.
Notice of any decision identified as key must be included on the Forward Plan at least 3 weeks in advance of the month in which the decision is due to be taken. You should contact Democratic Services to arrange for details of the change/restructure to be included on the Forward Plan.
Non-key decisions: These are proposals or decisions involving expenditure or savings totalling less than £250,000. These decisions can also be taken either as a Cabinet, Portfolio or operational decisions.
Decision Approval Process
Non key operational decisions will only need to be approved by the relevant Director using the new Restructuring Report template form, having sought comments from Finance, Human Resources and, where necessary Legal Services. These decisions will not be subject to call-in and can be implemented as soon as they have been agreed.
Operational key decisions will need to be signed off by the relevant Director and based on a formal Delegated Action Report. These decisions will be subject to the call-in process, prior to implementation.
All Portfolio decisions (whether key or non-key) will need to be based on a formal Delegated Action Report and must firstly be signed off by the relevant Director before being approved & signed off by the relevant Cabinet member.
In the case of any operational key decision and all Portfolio decisions (whether key or non key) a copy of the Delegated Action Report, once approved and signed off by the Director, must be sent to Democratic Services (within 24 hours of it being signed) so that details of the decision can be included on the weekly “Publication of Decisions List”. This will then trigger a 5 working day call-in period, which provides members with an opportunity to ask for the decision to be reviewed prior to implementation. Please note the decision must not be implemented until it has cleared this call-in period.
If the decision is called-in, its implementation will remain suspended until a review by the Overview & Scrutiny Committee has been completed. This will usually be within a one month period. Democratic Services will advise if your decision is called-in, and the outcome of that process, once completed.
Delegated Action Report
In all cases the Delegated Action Report must comply with the Council’s Report Writing Guidance. It is important that you give Finance, Legal, and Human Resources at least five working days notice that you require their comments on the implications of the change / restructure. The same notice period applies for obtaining Finance’s comments on a Restructuring Report template form.
Pension and Associated Costs
You should include an estimate of pension and related costs in the Delegated Action Report or Restructuring Report. You will be able to obtain figures from the Pensions department.
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Principles of Managing Re-organisations
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The table below provides examples of changes / restructures and the appropriate type of report that you should complete. It also outlines the authorisations that should be obtained prior to implementation dependant on the reason for the change / restructure. In the event of doubt or difficulty you must contact the Democratic Services Team.
Example Reasons for Change / Restructure / Type of Decision / Type of Report / Authorisation(s) RequiredRestructure within a team driven by the manager to achieve efficiencies or budget reductions / Operational
Non-key decision / Restructuring Report
If applicable you should include an estimate of any redundancy and associated (pension) costs, including how these costs will be met /
- (FCR) Financial Accountant to confirm change/budget and (HR) to advise on Employee Relations impact
- Signature of Director of the department
Restructure within a team driven by the manager to achieve efficiencies or budget reductions / Operational
Key Decision (above £250k or likely to involve significant impact in 1 or more wards or on service provision) / Delegated Action Report
If applicable you should include an estimate of any redundancy and associated (pension) costs including how these costs will be met /
- (FCR) Financial Accountant to confirm change/budget and consultation with Legal, Human Resources, Trade Unions
- Provide Democratic Service with details to put on the Forward Plan
- Signature of Director of the department
- Copy of signed report to be sent to Democratic Services which will trigger call-in – Democratic Services to advise if decision called-in.
Restructure of ‘individual’ department driven by Director to achieve efficiencies / Portfolio
Key Decision (above £250k or likely to involve significant impact in 1 or more wards or on service provision) / Delegated Action Report
If applicable you should include an estimate of any redundancy and associated (pension) costs including how these costs will be met /
- (FCR) Financial Accountant to confirm change/budget and consultation with Legal, Human Resources, Trade Unions
- Provide Democratic Service with details to put on the Forward Plan
- Agreement of CMB
- Signature of Director of the department andCabinet Member
- Copy of signed report to be sent to Democratic Services which will trigger call-in – Democratic Services to advise if decision called-in.
Closure of service due to withdrawal of government funding / Portfolio
Key Decision (above £250k or likely to involve significant impact in 1 or more wards or on service provision) / Delegated Action Report
If applicable you should include an estimate of any redundancy and associated (pension) costs including how these costs will be met /
- (FCR) Financial Accountant to confirm change/budget and consultation with Legal, Human Resources, Trade Unions
- Provide Democratic Service with details to put on the Forward Plan
- Discussion and agreement of CMB
- Signature of Director of the department and Cabinet Member
- Copy of signed report to be sent to Democratic Services which will trigger call-in – Democratic Services to advise if decision called-in.
Outsourcing of Service as recommended by LEANER Service Review / Corporate
Key Decision (above £250k or likely to involve significant impact in 1 or more wards or on service provision) / Delegated Action Report
*Seek specific advice from Democratic Services /
- (FCR) Financial Accountant to confirm change/budget and consultation with Legal, Human Resources, Trade Unions
- Provide Democratic Service with details to put on the Forward Plan
- Agreement of Director of the department
- Agreement of Service Review Board
- Agreement of LEANER Board
- You should now seek specific advice from Democratic Services regarding the next steps
A major restructure within a department to achieve efficiencies recommended by Service Review / Portfolio
Non Key Decision (below £250k or unlikely to involve significant impact in 1 or more wards or on service provision) / Delegated Action Report
If applicable you should include an estimate of any redundancy and associated (pension) costs including how these costs will be met /
- (FCR) Financial Accountant to confirm change/budget and consultation with Legal, Human Resources, Trade Unions
- Agreement of Director of the department
- Agreement of Service Review Board
- Agreement of LEANER Board
- Signature of Director of the Department andCabinet Member
- Copy of signed report to be sent to Democratic Services which will trigger call-in – Democratic Services to advise if decision called-in.
Transfer of a ‘service’ from Department A to Department B - agreed by CMB / CorporateNon Decision (above £250k or likely to involve significant impact in 1 or more wards or on service provision) / Delegated Action Report
If applicable you should include an estimate of any redundancy and associated (pension) costs including how these costs will be met
*Seek specific advice from Democratic Services /
- (FCR) Financial Accountant to confirm change/budget and consultation with Legal, Human Resources, Trade Unions
- Agreement of Directors of both departments
- Discussion with CMB
- You should now seek specific advice from Democratic Services
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