Organisational Structure and Culture - Research Paper Example

Organizational Change Introduction Technology has rapidly revolutionized the way business organizations are providing goods and services. Business organizations need to have effective and efficient structures and cultures that would enable them to respond to the needs and requirements of the twenty first century. Organizational structure consists of the chain of command within organizations. The task is divided and distributed amongst the work force in order to achieve the common objective. Different models of organizational structure have been proposed and applied. Organizational culture refers to the principles and values that are held dear by the company. These principles provide a framework and mechanism for ensuring the development of fairness and transparency. It also assists in the development of ethical standards that provide management with the means to resolve ethical dilemmas and problems. Both organizational structure and culture act as promoting factors for change inside organizations. It is the aim of this research paper to study the impact of structure and culture on change management. The paper provides description of the theoretical concepts regarding organizational structure and culture. It identifies the various theories and classification schemas of structure and culture. After that the research paper makes links between structure and culture on the success of change within business organizations. In order to arrive at appropriate conclusions the research paper utilizes and incorporates a number of consistent and perfect resources. Organizational Structure Organizational structure refers to an ecclesiastical order in which various sections pool resources and provides valuable input towards the attainment of common objectives. Every organization incorporates a unique style of organizational structure that enables it to either succeed or fail in the business market. The atmosphere and environment of the organization is determined by a number of factors. Each section of the organization is assigned different tasks so that the targets are achieved (Hage, 1999: Pg 597). In many cases the organizational structure does not adhere to ground realities which can cause significant structural and administrative problems for the organization. The deviation from standard principles can result in the proliferation of quality and performance related problems. Organizational structure seeks to augment the proportion of endeavor and participation in order to maximize investments. Empirical studies have found evidence that effective and efficient organizational structures can assist the process of integration and coordination between various sections of the organization. A system of checks and balances seeks to boost the work process. Successful organizational structures empower employees with decision making abilities (Hage, 1999: Pg 598). Such an endeavor results in the application of innovation and creativity towards the resolution of problems. It also helps to promote proficiency and efficacy inside the work place. Organizational structure needs to be reinvented with the passage of time in order to meet new challenges. Sometimes specific modification to the existing structure can cope with the challenges yet in other cases there is a need to overhaul the entire organizational structure. Types of Organizational Structures Organizational structure has been analyzed and scrutinized by a number of researchers and academics. One of the basic structures is known as the entrepreneurial structure which is characterized by the lack of formal and official operating procedures. The business founder usually controls the structure by identifying goals, objectives, and decisions. Bureaucratic organizational structures have formal and official standard operating procedures (Hannan, 2003: Pg 309). Employee initiative and motivation are not encouraged because of strict adherence to company guidelines. The management retains decision making ability as they make all the strategic decisions. Post bureaucratic structures have also been analyzed and scrutinized by researchers. These organizational structures have a flexible and efficient chain of command. Decisions are made through mutual agreement and harmony by taking the employees into confidence. This model encourages greater involvement and partaking for the employees. However the application of this model is limited to non profit and charity organizations. During the 1990s a new model of organizational structure was developed and designed by researchers. This model was known as the matrix structure. Employees are hired on the basis of their special skills while the characteristics of the products are also taken into account by the management. This helps provide a conceptual model in the administration and management of the organization (Hannan, 2003: Pg 310). The matrix model allows multitasking skills which results in employees perform a number of diverse and interesting tasks. This results in an increase in employee stimulation and motivation. Finally a new type of organizational structure is the concept of virtual offices. Organizations utilize digital and information technology applications to outsource different functions to third party entities that can be located anywhere. Organizational Culture Organizational culture refers to the set of guidelines, principles, rules, and regulations that are used to govern the workplace. The culture is determined by the relationship of the organization towards its business partners and customers. It seeks to set up objectives that would help to increase the revenue and profit of the business organization. Organizational culture seeks to provide a structural framework where employee actions and deeds can be governed and regulated (Randel, 2009: Pg 804). This is done in order to protect the business interests of the organization. The success or failure of organizations can be determined by the prevalent organizational culture. Efficient and effective organizational cultures have clear and precise goals. The strengths and weaknesses of the organization are taken into account by using a realistic posture. A clear vision and mission statement help to provide management with the tools to reflect and perceive decisions. Organizational culture can be dependent upon numerous factors. In some companies the individual can be venerated and honored. Organizations with individualism have higher levels of creativity and novelty since the employee is empowered to improve and augment their skills towards problem resolution. In other companies the collective interest of the organization is taken into account while stifling individual initiative and endeavor (Randel, 2009: Pg 807). Collectivist organizational structures are better suited for developing team spirit which can lead to resolution of standard problems. However innovation and ingenuity are inhibited in such a culture. Organizational culture can also lead to the development of ethical codes that provide the mechanisms to respond to any ethical dilemmas and problems. Successful Organizational Culture Organizational culture is considered to be successful if employees react to stimulation and incentive. This is possible because the work force acts in accord and agreement with the organizational values and principles. The management enjoys good reputation because of its formidable communication skills with the work force. The levels of interaction and interface are boosted which can assist in developing strong organizational culture (Kwantes, 2007: Pg 220). Weak organizational culture is not cohesive or disciplined in order to achieve the mission statement of the company. The work process needs to be employed through a system of rules and regulations. Strong organizational cultures are characterized by the presence of group feedback and initiative. Brainstorming sessions are conducted which can lead to the resolution of problems. However this approach does have its demerits in the sense that sometimes the solution might not be based upon realistic notions. Theories of Organizational Culture Geert Hofstede is considered to be the primary researcher on the existence of organizational culture. Hofstede believed that successful organizational cultures have features of individualism and collectivism (Kwantes, 2007: Pg 221). Other researchers are of the opinion that organizational culture is based upon criticism and probability. This means that management should be dynamic and revolutionary in order to adequately respond to any unforeseeable circumstances. Similarly their ability to take calculated risks also determines the success of organizational culture. Modern organizational theories have concluded that organizational culture should focus on work teams and groups in order to divide and distribute tasks. Organizational Change Organizational change has been defined as the strategies and techniques that are implemented in order to transform the disposition of business. It is a diverse field which involves the application of numerous concepts. Change is a process that passes through numerous phases. It is an intrinsic element of leadership and management. The business environment in the twenty first century has changed because of the set of challenges for business organizations. Organizational change should utilize strengths in order to overcome weaknesses (Blair & Meadows, 1996: Pg 26). Accordingly the definition of organizational change has also been transformed due to the dynamics of the twenty first century. It is defined as the effort and endeavor to stimulate the work force to exert for their personal growth and organizational growth. Simultaneous application of these two objectives enables the drive for change. This also results in development of competence and usefulness within the business organization. The process of change results in the enlargement and corroboration of tactics and techniques. It encompasses a vast body of understanding and comprehension towards problems. The organization is a multifaceted and intricate entity that consists of numerous processes and departments. Change focuses on the development of independent processes and collective organization. Experts are posted at the various departments in order to achieve proficiency in the work process. The weaknesses of the system are identified in order to streamline the work process. Interventions are applied in the context of human and technological resources. A systematic and methodical approach is applied so that the transition occurs in a smooth and reliable manner. Types of Organizational Change Empirical and theoretical studies have identified the number of organizational change mechanisms and methodologies. Organization wide change involves the complete restructuring and overhaul of the structure and culture. It leads to the development of new mechanisms for change and innovation. This change is deep rooted as it calls for the modification of values, principles, work process, and attitudes. Another type of change is the subsystem change. In this category of change only poorly performing departments are overhauled or new technology implemented in order to improve efficiency and effectiveness (Hannan, 2003: Pg 311). Transformational change seeks to implement change from the upper management to the lower employees. This systematic and methodical approach uses a step by step approach. This cautious approach can lead to slow change but allows management to identify the weakness of their strategy. Remedial change seeks to solve current problems only. It is concerned with the short term objectives by incorporating quality and performance. The various types of change are utilized depending upon the situation of the organization. The best way to accomplish this is to conduct a systematic audit and review of the organizational challenges. This leads to the pursuit of dynamic and innovative strategies for implementing organizational change. Organizational Culture and Change Empirical studies are divided as to the influence of leadership and management in driving change inside organizations. Proponents who argue that leadership is the catalyst for change insist that culture is strongly interrelated with the long term objectives. Leadership has the mechanisms for modifying or altering long term objectives while ensuring that precise strategies are adopted to accomplish them. Changing the culture requires meticulous planning and organization. Often employees are reluctant to embrace change because of uncertainty (Burnes, 1996: Pg 45). The school of thought that argues management is responsible for change proposes that the managers are faced with the daunting task of organizing and administering the work process. This requires the presence of intuition and decision making abilities that can induce change within organizations. Nevertheless all empirical studies agree on the presence of certain guidelines that enable organizational culture to become the driver for change. Imagination and foresight need to be augmented so that a clear picture of change techniques is acquired by the management. The mutual principles and outlooks assist the management in fostering an environment of change (Burnes, 1996: Pg 49). The upper management of the organization must be willing to adopt the necessary principles and rules in order to achieve change. The organizational culture of the upper management must become the model for revolution and conversion. The practical implementation at the top level ensures the efficiency and effectiveness of change management. In many cases the change is simply a modification and alteration of existing procedures rather than any overhaul of the system. When organizational culture is utilized to change the dynamics of the organization it is essential that employees who are willing to accommodate with it should be retained and rewarded. However any employee that is unable or unwilling to adapt to the new rules and regulation should be terminated (Blair & Meadows, 1996: Pg 30). When change is inevitable the management also has to face ethical dilemmas and problems. The organizational goals could clash with personal values. This can be reconciled only by adopting smart and prudent strategies of change. The creation of a new organizational culture is difficult and cumbersome for the management. The smart and appropriate way is to implement a methodical and systematic approach. Such an approach adopts a pilot project in order to study the strengths and weaknesses. After that a gradual and slow process of change and revolution is implemented within an organization. Organizational culture plays a valuable role in change management because it encourages innovation and creativity. Employees need to be motivated intrinsically and extrinsically by relating their personal growth with the growth of the organization (Mullins, 1999: Pg 29). A motivated work force that takes pride and satisfaction in the work process can become the engines for change through organizational culture. The culture of organizations should allow employees to express their innovation and creativity. The employees must be given interesting tasks in order to reduce or mitigate chances of boredom. Organizational Structure and Change Organizational structure remains the core foundation of successful business organizations. Empirical studies have identified the characteristics of efficient and effective structures. Such structures aid and assist the management in distributing and dividing tasks, assigning duties, concentration of power, and monitoring mechanisms. Organizational structure is strong related with change since managers have the framework to utilize and allocate human and technical resources. They have the methodology that enables them to determine the best possible course of action. The information surge inside the organization becomes available to management if the structure is effectual (Mullins, 1999: Pg 33). Change is a continuous process of development and research which occurs in response to unique events. The management might be required to change the job description of employees in order to meet new challenges. The organizational culture might rely on rules and regulations in order to enforce and regulate standards. In such a situation the management might be tempted to modify the structure so that employees express satisfaction and contentment when performing their jobs. Empirical and theoretical studies have identified four important stages as being vital for changing the organizational structure. The entire process of change should be flexible in order to absorb the new structure. This means that the management, work force, and resources of the organization are ready to accept the new rules and regulations (Blair & Meadows, 1996: Pg 44). At the next stage the organizational structure should be based upon mutual consensus and feedback. Dynamism is incorporated so that any unforeseeable circumstances can be reduced or mitigated by the structure. A comprehensive system must exist to monitor and validate the success of change management. Finally the allocation of resources should be considered during the process of change. Organizational structure plays a vital and important role in the implementation of change inside organizations. Successful companies conduct a comprehensive and broad review and audit of their strengths and weaknesses. With the acquisition of data and information the management can identify the sectors that need to be modified or altered. The management consults with the work force in adopting the best possible course of action towards change (Harris, 2007: Pg 339). The duties and responsibilities of each department is also evaluated and appraised by the management. The human resources are prioritized according to their competencies and skill levels. A standard and uniform code of conduct and ethics is implemented in order to remove inconsistencies and contradictions. The communication system inside the organization needs to be reviewed in order to implement change. The analysis of the above steps suggests that organizational structure plays a direct role in the success of change. Organizational structures that have certain attributes are bound to be more successful as opposed to other companies (Boeker, 1997: Pg 159). These attributes include the willingness at the highest level to achieve and recognize change. It involves the management radically overhauling the entire system in order to promote efficiency and effectiveness. Conclusion In the business environment of the twenty first century, business organizations need to be flexible and elastic in their response to challenges. Organizational structure is defined as the arrangement and configuration of companies. It consists of the ability to divide and distribute tasks. It also seeks to integrate and coordinate human and technological resources for the pursuit of company objectives. Organizational culture has been defined as the informal and formal code of conduct that regulates and enforces behavior and outlook inside the company. It can consist of values, principles, and rules which allow the management to achieve the objectives. It also comprises the principles of the founding fathers. Both organizational culture and structure are strongly related in the success of change inside business organizations. Organizational change has been defined as the integration and coordination of employee performance with the organizational performance. Such an approach leads to success inside the work place as new values and principles are adopted. Change is a process which is multifaceted and intricate. Organizational culture plays a significant role in the promotion and development of change. A culture where employee creativity and innovation is rewarded will make the process of change smooth and reliable. Similarly efficient and effective organizational structures enable management to monitor and validate new strategies. Leadership has the mechanisms for modifying or altering long term objectives while ensuring that precise strategies are adopted to accomplish them. Changing the culture requires meticulous planning and organization. References: Blair, G and Meadows, S. (1996) A Real-life Guide to Organizational Change, Gower Burnes, B. (1996). 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