Team reorgs are tricky events at best. Majority of the employees worry about the safety of their jobs and water-cooler conversations abound. Two common mistakes are committed by the management team. The first one may be termed as wait and see approach where all decisions are delayed till the last moment when it all comes out from the top leader. Rumours keep spreading around, leading to anxiety and ultimately the leaders need to submit to come out with answers before stipulated time. The other common error is the ivory-tower idealism approach. Here the top management may have genuine good intentions but the way it is broadcast to the people, cynicism instead spreads. The talent management or reorg team may deliver webcasts or take tours of the premises, but the employees still feel neglected. The best way to go past both these conundrums is to ensure corporate communication is effective at all times. People must be constantly spoken to until the point is driven home. Also the leaders must themselves be clear as to what the employees are looking to hear, and deliver the communication accordingly. There has to be engagement regarding the process among employees themselves and a formal forum for this needs to be facilitated by the executive level. A proper design must be in place to make sure this reorganization takes place without undue stress within the organization taking place. The other stakeholders also need to be taken in to confidence. This includes the worker unions, customers, suppliers, regulators and independent board members.

Source:http://www.mckinsey.com/business-functions/organization/our-insights/reorganization-without-tears