HR Assignment report on: Cisco Organizational structure

Q?? Write an analysis on Cisco Organizational structure??Solution the essay proposes is:

Analysis

Cisco is trying to change its identity in terms of the organisational structure and the scope of its operations across the world. In response to the changing structure, the company expects to cut down its global workforce anywhere from 3000 to 11,000. As per the information stated in the article, Cisco expects the Australian and New Zealand market to grow three fold in the coming years which would provide growth opportunities to its business. The objective of the company as of now remains to cut down the costs in the business to the tune of $1 billion and thus layoffs would be one of the route to achieve the same. Although this does not seem to be the right strategy for Cisco Australia in particular keeping in mind the specifics of the market and the economy of the country (Bunnell, 2005). On one side the Australian market is expected to grow well in the coming years and Cisco is engaging itself in cost cutting measures thereby posing a threat to the overall business growth in coming years. The Australian arm was supposed to increase the head count by 20% overseeing the market performance but is now receding to layoffs subsequently (Duffy, 2010).           As per the deontological ethical theories, the morality of action by an entity is judged based on the action’s adherence to rules (Crisp, 1995). Keeping it in mind, the step taken by the Cisco’s Australian business does not seem fair. As per the business sense, it does not make sense to cut down the costs or have a defensive strategy in the market which is expected to grow and generate the revenues three times at its present stage. In order to keep up with the market growth, business would have to invest in people and resources which were informed by then Cisco Australia and New Zealand chief Les Williamson. Cutting on the staff strength would put additional burden on the present staff which would make things difficult for them and may lower down their efficiencies as well. On moral grounds it would not seem fair for the organisation to act in this manner considering the effect on people as well on business ahead (Broad, 1997). In order to achieve the objective set by the global arm, it is essential to look again on the markets where growth is not expected to come in future. Also Cisco is looking to expand its line of business as it is entering new technologies and products as well. With the help of seven acquisitions which were made last year, Cisco would be entering new markets altogether which would boost up its revenues and would also give a new direction to its business (Ross, 2005).

Conclusion

Cisco Australia plans to cut short the number of employees as a part of its global cost cutting measures. The company intend to do so by shifting some of its work to countries like India. Cisco however is expecting the Australian and New Zealand market to grow well in the coming years. The company although planned to increase the workforce earlier in the year has changed its plans and would cut some part of its work force soon (Duffy, 2010). The company should not deal in such measures and should maintain a healthy staff in order to cope up with the expected growth in the market. It should trim down the costs in the markets where growth is not coming and is not expected in future. This would help the company in proper allocation of resources in the markets where is it present. It would also help in meeting the overall objectives of the company at the global level. The company should instead of cutting costs in terms of employees should look into process audits and should try to save money by enhancing the efficiencies in the system (Ross, 2005). Since a lot of new businesses have been acquired by the company, it is essential that they generate revenues for the business without raising costs and by operating in a manner better than their previous ones. This would be one area where Cisco needs to work proactively in the coming years to achieve its cost savings of $1 billion.

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