Reorganization

• How often should firms undergo reorganization? • Should a unit be reorganized whenever its leadership changes? • Should there be regular reorganizations every few years? • Or should major restructurings be less frequent? • Some management experts have suggested that frequent reorganizations are akin to the overuse of antibiotics by doctors. In the short run such use may help the patient although the long-term effects of such treatment can be self-defeating or even harmful. When do the costs of reorganization become excessive?

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