Organizational Structures in the Education Sector of Finland and the UAE - Case Study Example

COURSE TITLE: LЕАDING ОRGАNIZАTIОN СHАNGЕ BY СHАNGING THЕ ОRGАNIZАTIОN СОMРLЕХITY (ОRGАNIZАTIОN STRUСTURЕ) NAME: INSTRUCTOR: INSTITUTION: DATE: Contents Abstract 2 Key words 2 Introduction 2 Types of organizational Structures 3 Functional structure 4 Divisional Structure 4 Matrix 5 What generates complexity? 5 Diversity 5 Ambiguity 6 Change 6 6 Literature Review 7 Systems Theory 7 Complexity theory 8 Chaos Theory 8 How to manage complexity 9 Case Study: Education Organizational Structure in Finland 10 Education Organizational Structure in UAE 11 Recommendation 14 Conclusion 14 References 15 Appendices 16 Appendix 1 Ministry of education and culture structure for Finland 17 Appendix 2 UAE Education structure 18 Appendix 3 Organizational structure of the UAE special needs education system 19 Abstract It is important for organizations to be aware of any change happening in its operating environment which may increase complexity. Similarly, it is increasingly becoming important for manager to monitor closely these changes happening internally and externally so that the organization can achieve success and survive the change. The ability of an organization to survive turbulent global environment where competition and customer needs are constantly evolving is dependent on the ability of its top managers to define clear goals which will guarantee success. This paper discusses the complexity associated by adopting different organizational structures and different theories which explain origin of organizational structures. It also discusses the different organizational structures in the education sector of Finland and UAE. Key words Organizational Complexity, Matrix, Functional Structure, Divisional Structure, Chaos theory, Systems theory, Complexity theory, Diversity, Ambiguity and Change Introduction Understanding organizational complexity is increasingly becoming an important concept for managers, due to the challenges brought about by globalization, accessibility to more information, changes in the socio-political and economic operating environment. In response to these external changes organizations try to adjust by changing its structures, processes and policies. Similarly, globalization has substantially eased the flow of people and knowledge from one part of the world to the other, sometimes demolishing trade boundaries and forming larger blocks which allow free flow of factors of production. This realignment in trading environment has come at a cost where the organization has to mirror the external environment so as to survive. As organizations try to increase their market share by venturing in other trading blocks, developing new production techniques and embracing new regulations in other markets, they often tend to complicate otherwise simple structures and policies. Organizational complexity has been defined as the number of activities or sub-systems within an organization, with the dimensions of vertical or number of levels; horizontal or number of units, departments and divisions; the number of geographic locations (Daft, 1992). As organizations strive to grow, its activities increase, systems or subsystems become complex, the number of departments increase and perhaps number of locations increase which necessitate the need to improve on organizations overall strategy. There are different types of complexities exhibited by organizations including; imposed, inherent, designed and unnecessary complexity which pose challenging operating environment, consequently affecting the structure of organizations. Types of organizational Structures For any organization to achieve success, whether big or small it needs to ensure that its structure is properly aligned to the needs and purpose that the organization is pursuing. For example; if an organization is after provision of tailor made products to its customers, then there is need to have a strong customer service team, structures and policies to ensure customer feedback is incorporated in the production process. Below are some of organizational structures used by organizations when dealing with change and complexity. Functional structure Functional structure is designed by grouping organizations segments or units to match their intended purpose. In this type, departments are clearly defined with each department operations contributing to the overall strategy of the organization. Workers in every department are well equipped in terms of knowledge and skills to perform duties which contribute and support the department. This kind of a structure improves the overall performance of the organization by allowing employees to specialize in specific areas and develop capacity through training and experience. However, the major challenge of this type of structure is that communication, coordination and the ability of departments to work together can be limited and adversely affect the overall output and performance of the organization. Divisional Structure This is common with large organizations which operates from different locations and offer a variety of products and services to its customers. This structure allows needs to be met quickly with seamless flow of activities. However, complexity is increased by having large organizational structure which is costly and hinders free flow of information. This structure allows faster decision making at division level to meet the current needs. The challenge of division structure is, increased costs due to duplication of roles in all locations and reduced focus on the overall organizations strategy. Matrix This is a hybrid of the two structures which allows the organization to reap from the two types of structures. With this kind of a structure there is an aspect of dual management where some employees can report to different managers. The combination of the two allows the organization achieve higher levels of performance especially when the organization is operating in a volatile environment. Authority in matrix structure flows from top to bottom in the case of (functional Manager) and horizontally for the divisional manager. Employees can actively engage in skill developing projects while pursuing their area of specialty. What generates complexity? Organization design tries to match the complexity of an organization's structure with the complexity of its environment and technology according to (Galbraith 1982). Generally below factors create complexity by eroding operational boundaries where an organization operates but the resulting impact on the organization is different. Diversity Multinational organizations often face challenges brought about by diversity both within the organization and in the external environment across all the functional areas of the organization. Outside the organizations territory there are forces which increase complexity and hinder operations. Different cultures, heterogeneous customer wants, different shareholders, political influence, competitors and legal environment all pose diverse range of challenges to the organization operations. Trying to reduce these restrictions may mean that the organization is being unresponsive and better understanding is called for so as to manage these challenges. Managers must respond to diversity by coming up with innovative ways of solving new problems, new processes and systems, financial deepening to finance any new venture, adoption of new technologies and product modification to meet specific customer needs. Ambiguity Organizations in the current are exposed to massive information with less clarity on how to sieve and apply. Business finds it difficult to use information such as price elasticity, market trends, customer feedback just to mention a few and make it difficult to discover their path to success. Change Even if an organizations finds solutions to all of its problems, manager still have to worry about change since change can happen any time any day. Today’s solutions might not be effective in solving tomorrow problems and this is a major concern for leaders because the must continuously think of possibilities of tomorrow and anticipated relevant solutions to mitigate the risks. Operating environment is always changing with introduction of new technology, competitors, new policies and changing customer preferences, organizations must work to ensure all these changes do not drive them out of business. Literature Review Below are some theories which try to explain how complexity comes about and how to manage it in organizations. Systems Theory System theory is a science concept which explores general laws and principles which are applicable across systems. The concept of systems theory was propagated in 1940 but it remained dormant up until 1960. Systems theory tries to explain the origin, stability and evolution of systems ( Bausch, 2002). All traditional theories appreciate closed systems approach which assumes that only internal elements of an organization are important. Open system approach appreciate that interaction of an organization with its external environment is important in the growth and success of any organization. Any change in any of the internal or external factors causes changes in other factors according to (Shafritz and Rusell, 2005). Lack of coordination in the case of closed system between the organization and its external environment reduces chance of the organization from incorporating sufficient energy required for continuous growth. The concept of input throughput and output increases the level of complexity in any organization. According to Schodeebek open system concept can be categorized in to three classes which include order, regularity and non- randomness. Systems theory do not provide clear way when parts of the system are in conflict or are mismatched in terms of resources and power. These unclear circumstances provoke the organization to act towards provision of solution to its challenges. Also critics argue that since the boundaries of external environment and the organization are viewed as distinct, this inhibits communication and interactions when the organization has different chains of command. Complexity theory Some theorists believe this a new science while other believes it is an old science with modernism. Non-linear dynamics (dissipative structure) can respond to changes in the external environment un-proportionately due to high exchange of energy with external environment which don’t lead the organization to equilibrium. This non-linear disruption may lead to increased complexity within the organization structure and lack of corporation within the elements of structure within the organization. With increased system complexity managers find it difficult to make strategic decisions to adapt with changing external environment. According to Mckenzie and James,2004 concerning the concept of entropy systems tend to be disorganized and lack of pattern in a complex theory though in some instances these patterns can be found called attractors. This theory is characterized by interacting parts within a system which is often necessitated by a feedback mechanism. Similarly, complex systems have the ability to reorganize adapt to external stimuli without influence of a centralized control. Chaos Theory According to Lorenz (1963) a small impact might grow and elicit a substantial disturbance in any system became an area of research a French mathematician developing the differential equation. His work demonstrated that there was a mathematical point of view where there was sensitive dependence. Any small disturbance in the external operating environment can result in to a magnified system challenge in organization’s systems. How to manage complexity The first step to deal with complexity is to establish the kind of complexity an organization is dealing with. Most organizations tend to respond to increased complexity by creating complex structures within their organizations, which does not cure the challenge because most complexities do not add value and therefore need to be reduced if not eliminated. Also this means creating a complex structure which is difficult to manage. Some of the ways to manage complexity revolve around creating simplified structures, creating and defining a clear organizational strategy which will eventually provide a sense of leadership and direction. Every organization must have a clear strategy with different short term and long term goals to achieve. Decentralization of core critical operations and processes in an organization creates a more empowered unit for learning, adaptation and adding value to the existing knowledge base. Standardizing processes which to increase efficient, reducing duplication of processes and authority can lead to reduced complexity. Similarly, aligning employee goals to the overall strategy reduces the chances of employees pursuing their own interest can be a good way to reduce complexity. Case Study: Education Organizational Structure in Finland Finland education system has progressively evolved over the ages and continues to experience more positive advancements as time goes by. Similarly, the education organization structure has also undergone great transformations. Finland’s education system exists under the ministry of Education and Culture. The organization could be said to have a flatter type of structure. Looking at the scope that this ministry is awarded, we could say that Finland’s ministry of education enjoys flexibility and encourages direct communication within its structure. It has some degree of autonomy on its operations in advising the education sector but it’s largely regulated by the government. The ministry of education receives guidelines from the government and prepares policies, procedures and regulations to be observed by other key educational stake holders based on these guidelines. It is also responsible for the implementation of key educational programmes within the education sector. Under this ministry is the Finnish National Agency for Education which inspects monitors and governs the school system in Finland, under the leadership of a Board of Management. This body formulates the education curricular, develops the content of education for the various levels and implements national education policies. Finland’s curricular is periodically reviewed to factor in progress and systems advancement. The general policy in Finland is that each citizen should have equal access to high quality, efficient, education and lifelong learning that can match international standards. The culture, beliefs and practice in Finland has always been that proper education, is empowering, and promotes the competitiveness and well-being of a society in general. The agency actively participates in the preparation of education policies and in the exchange of relevant educational information within the European Networks together. To effectively deliver on its core mandate, the Finnish National Agency for Education then has under it, various departments, based on their functions. These departments are specific in functions, and independently report to the agency. They work closely with the local municipalities in facilitating educational quality delivery especially for the Early Childhood Education and Care. All educational levels in Finland follow the national curriculum guidelines and the local authorities, with whom the schools collaborate, ensure the supervision of this. Local education authorities use the national guidelines on the nation curricular but are free to come up with own curricular, that is within the framework of the one that is nationally used and accepted. The partnerships between the schools and the local authorities, without direct influence from the national agency, enable the schools to have a certain degree of autonomy and flexibility. For instance, schools’ heads are free to hire their teaching and support staff. Education Organizational Structure in UAE The UAE has continuously developed over the years with the countries’ focus being on the improvement of the literacy levels within its population and equal access to education to all. The educational organization structure is fairly flatter with some degree of hierarchical concepts. Education is provided through the main stream public and through a substantial number of private schools as well. The government of UAE dedicates a substantial budget to the education sector, which shows just how much valued the education system is to the UAE. The education system in the UAE is regulated by the Ministry of Education. With the newly formed organizational structure, the ministry of Education is seen to shoulder most of the powers and authority on the system. With a purely hierarchical system of organization structure, decision making, policy formulation, and control is maintained at the top of the hierarchy. Power and authority flows from top to bottom of the hierarchy with some degree of involvement of those positons nearest the minister’s office contributing to policy changes and management of the ministry. Alongside this organizational structure is that set specifically for special needs education which is as well highly hierarchical. A considerable amount of centralization is concentrated at the top of the structure where guidelines and policies are formulated, but after consultations with the positions lower at the structure. These types of organizational structures promote order and common direction. It ensures that all stake holders in the structures are working though at different levels, towards the same goal, output level or achievement. Currently, UAE boasts of 94% literacy levels and, it is expected that this level will increase even further in coming years. Finland and the UAE have different educational organization structures. For Finland, power and authority is not concentrated at the top management in absolute terms. Middle and tactical management take part in formulating the education’s policy formulations and this not only eases the complexity expected in large organizations, it also promotes unity in the direction of the organization. Every employee in their own individual capacity feels valued and interacts seamlessly with the other elements in the system and this boosts the quality and breadth of productivity in their education sector. The UAE on the other hand has this format where most of the decision making is done at the top of the hierarchy. Once passed, these policies are then passed down the hierarchy for implementation. It is likely that as associated with this structure, lower level employees rarely contribute towards the decision making process. If I were an educational leader advising the UAE, I would amend the organizational structure to be more accommodative of the diverse segments that education offers. Education being a service, needs even more empowered and focused personnel in order for the organization to successfully deliver on their mandate. I would incorporate more inputs different stakeholders. The UAE has developed a special organizational structure for special needs education. This is a progressive move, which encourages the differently gifted to pursue their education and learning in a manner befitting them. This includes specialized departments that are empowered with the right personnel and right resources to adequately support special needs education and learning activities. I would also establish a reliable section on the education organizational structure that would support research studies on special needs students, guardians, teachers and sports specialists. Wholesome leaning is key for any progressive society. I this light, I would engage world leading countries on the education front for partnerships in order to develop further the education system in the UAE. Recommendation The UAE should seek more partnerships between the specific functional areas of the departments under the Minister’s office with local government authorities. They should focus more on training of the educators, and lower level administrators of education at the local levels. This would empower the local institutions with the right knowledge and skills to be able to come up with own curricular content and education methodologies. This would create a rich education culture, provide diverse learning and educational experiences for the population and promote independence of thought. The UAE should ensure that there is uniform quality of education available to all. It should adopt a structure where there is free flow of human resources between both public and private institutions. Equal empowerment of trainers in both institutions and see to it that they are both regulated by similar guidelines, policies and procedures. Conclusion The ability of an organization to survive turbulent global environment where competition and customer needs are constantly evolving is dependent on the ability of its top managers to define clear goals which will guarantee success. Managers are increasing dealing with complex situation when performing their daily functions. References Styhre, A. (2002). Non-linear change in organizations: organization change management informed by complexity theory. Leadership & Organization Development Journal. Marion, R. (1999). The edge of chaos. Thousand Oaks, CA: Sage. Daft, R. L. (1992). Organization theory and design (4th ed.). St. Paul, MN: West Publishing. Martha, M, Ulrich.S & Wolfgang A.(2002). Perspective for Managers. McKenzie, C., and K. James. 2004. “Aesthetic as an aid to understanding complex systems and decision judgement in operating complex systems”. Emergence: Complexity & Organizations, Special Double Issue. https://www.theguardian.com/books/2016/mar/11/finland-ranked-worlds-most-literate-nation http://minedu.fi/en/organisation http://www.oph.fi/english/education_system/historical_overview http://www.oph.fi/english/education_system/early_childhood_education https://en.wikipedia.org/wiki/Education_in_the_United_Arab_Emirates https://www.researchgate.net/figure/229888677_fig1_Figure-1-Organisational-structure-of-the-UAE-special-needs-education-system http://teachmiddleeastmag.com/uae-ministry-of-education-announces-details-of-new-organisational-structure/ www.thenational.ae/news/uae-news/.../abu-dhabi-boasts-94-per-cent-literacy-rate http://www.uaeinteract.com/docs/ADEC_signs_for_implementing_Finnish_education_system_model_in_two_public_schools/41431.htm Appendices Appendix 1 Ministry of education and culture structure for Finland Appendix 2 UAE Education structure Appendix 3 Organizational structure of the UAE special needs education system Read More