The Managerial and Organisational Perspective of Arts Council England - Coursework Example

The Structure of The Arts Council Changed Twice in About A Decade. Describe Each Change and the Advantages and Disadvantages of the Change in OverallContext of the Organizations Policies and Strategies Table of Contents Introduction 3 Theoretical Perspectives of Change 4 Critical Arguments of the Change 10 Advantages 10 Disadvantages 11 Critical Evaluation of the Change 13 Conclusion 15 References 17 Introduction Arts Council England is a non-profit enterprise which deals in funding, improvement and promotion of sponsored arts segments in England. Arts Council England chiefly receives funding from the government to ensure that major regional theatres and opera houses are provided with appropriate financial support. Arts Council consists of nine regional offices which are located throughout the nation with the domestic offices situated in London (The Leadership Trust, 2007). It is worth mentioning that Arts Council has experienced massive changes for altering the responsibilities in the recent a few years. For instance, in the year 1990, Arts Council had made significant changes by altering its allocation of resources from central to geographical region. Again, in the year 2003, Arts Council England experienced change when the funding system was reformed and every regional office was incorporated into one organisation (Scholes, 2004). The essay describes how Arts Council organised its changes in management twice over time. The objective of the essay is to understand the managerial and organisational perspective of changes and focuses on the activities of Arts Council England which have resulted into changes. The fundamental concept of this essay is to demonstrate how Arts Council England systematises itself with respect to structure, procedure and associations and accomplish success. Understanding the strategic situation of an organisation is vital for placing significant changes in the structure. Theoretical Perspectives of Change Organisational theory is the study of enterprises in order to recognise common subjects and thus resolve problems, increase competencies and productivity as well as satisfy the requirements of stakeholders. As Arts Council England pervade in public area and support other art establishments, organisational theory can help to identify how it works (Barzilai, n.d.). Organisational Process Organisational process describes the flow of information and working practices executed within an organisation. It outlines the supervision procedure, work culture and planning system practiced within the organisation. It is worth mentioning that organisational process is much important for applying any changes in the existing system acting as a tool to implement control in an organisation (Poole, 2000). In Arts Council England, the significance of organisational process can be observed apparently. In the new organisational process, the Arts Council England comprises chief executive officer, directors, senior officers and personal assistants as can be identified from the figure below: Source: (Arts Council England, 2009) Arts Council England has separate departments for varied tasks such as, advocacy division, communication division, planning department, investment department, arts department and support department as well (Arts Council England, 2009). This in turn benefits the organisation to execute its operations in a structured, systematic and planned way raising its overall efficiency. Cultural Relationship It is significant for an organisation to recognise the relationship structure as it distinguishes the decision making authorities to specific level. Thus, for any kind of strategic change it is essential for an organisation to consider the cultural aspects with utmost concern. For example, in Art Council, eradication of organisational layer or division can also change the culture of the organisation. Organisational culture is formed on the basis of organisational structure, and therefore any structural change can have an impact on culture of the organisation. Culture can explain the norms about organisations and the motives for its success. Culture can also be thought as the objects of organisation comprising the system and the structure (Johnson, n.d.). Cultural Web of Arts Council England Source: (Johnson, n.d.) The cultural web of Arts Council England provides the idea to cultural aspects of Arts Council England. As can be observed from the figure, Arts Council England provides financial support to numerous art institutions as well as regional divisions. The ambition of Arts Council is to address art at the heart of national life of people. Arts Council England follows the divisionalised organisational structure and it is publicly accountable for its activities. Evolutionary Theory Evolutionary theory defines a series of consecutive stages involved in the process of change in an organisational structure. Evolutionary theory of change is based on the thought that organisational change is formed by structural forces and restrictions. This theory assumes that development of organisation relies on its capability for flexible and effective resource management as its operations and varied functions collaborate with the external environmental factors. This theory perceives that the environmental situation can shape the organisational structure and as long as organisations’ activities are aligned with environment it can be measured as fit. The evolution in organisation is prompted by variance, selection, maintenance and struggle which can lead to transformation in organisational system (Sisaye, 2001). In Arts Council England, numerous weaknesses can be observed in its traditional organisational structure. The environmental situation persisting within the organisation indicates a lack of control over the regional offices that has resulted in requirement for cultural changes in Art Council England. According to evolutionary theory, the survival of Arts Council England relies on its ability to flexibly cope with the external as well as internal environment. It is worth mentioning that there was significant internal conflicts existed in fund distribution of Arts Council England. Therefore, Arts Council had to transform its organisational culture which led to the removal of all regional boards and merger of those boards into one single organisation. This evolutionary change not only resulted in effective control, but also increased the operational efficiency of the organisation (Scholes, 2004). Organisational Structure Organisational structure involves functions such as task distribution, management and direction which are focussed toward the accomplishment of organisational objectives. Organisations can be controlled through numerous ways on the basis of objectives. Organisational structure also causes significant impacts on the overall performance of the business in two ways. Initially, it delivers the basis on which typical operating processes and practices befall and secondly it decides members to be involved in the decision making procedure and hence form the outline of the organisation’s activities (Jacobides, 2007). In addition, the organisational structure describes the flow of authority and duties. It narrates the relations between peers and colleagues in a particular workforce. Organisational structure also describes the span of control and communication sequence. Therefore, studying organisational structure is significant for recognising the hierarchy and accordingly for implementing new rules and approaches. Organisations can use numerous organisational structures such as divisional, matrix and centralised among others for gaining benefits to their regular activities. However, it should be noted that every organisational structure has its own benefits and drawbacks (Daft, 2009). In case of Arts Council England, it had undergone changes in its organisational structure and corresponded with the new rules and approaches in different phases of development and growth. Before 1990, Arts Council England functioned as sole enterprise covering entire Great Britain. During that period, the goals of Arts Council England were to promote arts in Great Britain. With this concern, it used to arrange a portion of its fund to the regional offices. In this organisational structure, Arts Council England was performing as a feed store where other regional offices were performing according to their desires. This organisational structure was full with numerous flaws, because there was lack of control of Arts Council England over the regional offices and simultaneously. This organisational structure was actually advantageous for regional offices, rather than Arts Council England, because they were receiving financial support from Arts Council England and has less control over their activities. This organisational structure also possessed certain disadvantages with respect to organisational processes. The reason is that there was no effective control procedure and hence a strategy cannot be used and applied in such an organisational structure. Thus, in the year 1990, essential changes were made where the authority had transformed from central division to geographic regions of Arts Council England. The new organisational structure was generally a geographical divisional structure. Throughout this time period, the rules of Arts Council England were also transformed. The change in structure resulted in creation of 10 independent Regional Arts Boards which were efficient in functions and were reactive at local levels. The regional boards were conveyed at the core of finance rather than being free applicants to a central unit for funding. In the new organisational structure, the Arts Council England acquired the duty for funding national level art programmes (Scholes, 2005). Critical Arguments of the Change Advantages The new organisational structure brought several advantages and disadvantages to Arts Council England. The major advantage that the Arts Council was able to attain from the changes in organisational structure was increased concentration on activities of regional offices. The new structure provided the opportunity for Arts Council England to monitor on the local functions and search for new talents within nation. This type of organisational structure can be regarded as efficient because the consequences are apparently noticeable regarding regional performance. In this circumstance the outcomes of regional offices can be calculated by funding of performers. The new organisational structure generated the urge among regional offices to perform better and assisted in complete accomplishment of comprehensive objectives of backing artists throughout the nation (Scholes, 2005). Through the creation of different divisions in the organisation where each division is specialised in particular areas in their own style, it became easier for Arts Council England to develop the arts in different geographical areas where each district in England is popular due to its unique art type. Therefore, the geographic context based organisational structure helped Arts Council England to search for new kinds of art in England where the regional divisions assisted in the development of those arts. The organisational structure also facilitated sharing of information among different divisions and hence played a vital role to assist the disappointing divisions to improve the performance (Scholes, 2005). In former system it was quite difficult for Arts Council England to develop national policy or deliver consistency. The new organisational structure is aimed for bringing huge changes in arts subsidy comprising new rationalised application procedure with specific emphasises on amplified funding for separate artists (Scholes, 2005). Disadvantages Arts Council England also faced numerous disadvantages due to the changes in its organisational policies and strategies. The most significant drawbacks faced by Arts Council England were regarding the increase in its operational expenses as Arts Council England performs on government finances, money is considered as a major restraint for changes in organisational structure (Krishnan, 2010). The other disadvantage of changes faced by the organisation can be regarded as the development of single strategy for the state. In divisionalised organisational structure, it often becomes challenging for an organisation to follow and apply a single strategy. Thus, this organisational structure becomes ineffective when there is requirement for taking a common strategy for the entire organisation. The reason is that higher number of division is obviously resulted in increasing conflicts (Krishnan, 2010). The geographical division resulted in strong competition between divisions which was effective in certain level i.e. if the organisation is a profit making unit or divisions are sources of income. However, in case of Arts Council England, it is not a profit making organisation and thus, competition can be regarded as adversely affective for the organisation. For instance, competition can result in cut down of the money supply of one division for the sake of other division which can hamper the shared understanding. One of the most significant difficulties of new organisational structure is repetition of tasks. In each division there is requirement for functional divisions and employees which can increase the probability of repetition of functions. As a result it can increase the expense of operations (Krishnan, 2010). In order to overcome the difficulties of structural changes, Arts Council England has made another transformation in organisational structure in the year 2003. Arts Council England became merged with Regional Arts Board and developed as a combined unit. These changes were made in order to eliminate the drawbacks of pervious structure and to increase the funding performances. The new organisational structure was intended towards harmonising and governing the financial requirements to the geographical areas. Traditional Organisational Structure: Source: (Arts Council England, 2010) New Organisational Structure: Source: (Arts Council England, 2010) Critical Evaluation of the Change Arts Council England is a governmental organisation and performs on public finance facing numerous obstacles with respect to members who arrange the functions. For every effective organisation there must be equivalent sign of government and the members who recognise arts along with the people who provide financial support. In the transformed structure, the nomination of individuals was demarcated appropriately and tasks of regional centres were also changed accordingly (Scholes, 2004). The new structure comprised of 15 executive members including chairman and nine regional councils. These changes developed a vibrant procedure for planning in the organisation where the strategies can be outlined at centre level which flows from top to bottom. The new system provides the advantages of developing single strategy throughout the whole organisation evidently defining the procedures and tasks of the association and thus maintaining coordination and better cohesiveness within the various organisational departments. In the previous structure there were numerous duplications with respect to duties of employees. However, in the new organisational structure, there is one executive structure at the nationwide level which not only reduces the repetitive tasks of employees, but also lessens the necessities of employees. As a result, it has resulted in higher productivity, lower cost and time efficiency in activities (Scholes, 2004). The new organisational structure of Arts Council England is further equipped with adequate involvement of state and government. Likewise, there is satisfactory involvement of regional units at the national level. This structure is explicitly aligned with the new policies which are accepted by Arts Council England. The most important aspect for the changes in organisational structure of Arts Council England is shift of concentration on separate artists which have provided them a chance to demonstrate their skills to the world. Notably, the priority of Arts Council England is to bring congruence between regional divisions and in cultural diversity. The aim of the new structure is not only to provide financial support to the art institutions, but also make them famous and develop skills of every artist (Scholes, 2004). However, the major disadvantage of the new organisational structure can be identified as its increased complexity. For instance, changes implemented in relation to specific organisational roles performed by the employees are probable to increase difficulty in decision making and being fully accepted by all the divisions. Besides, the new organisational structure may also reduce the freedom of operations of regional offices and thus, reflecting a reason for resistance to change. Therefore, it can significantly influence the flexibility in terms of performance of the regional offices in different regions. Furthermore, the new organisational structure will result in a time consuming process of taking decisions and thus affect the pace of reaction with any environmental circumstances. Conclusion The new organisational structure of Arts Council England was quite efficient with respect to accomplishing the objectives formed by the organisation to provide appropriate support to art. Due to the new organisational structure, Arts Council England has been able to increase the funding from £230 million in 2002-2003 to £300 million in 2005 to 2006 (Scholes, 2004). This figure represents the effectiveness of the new organisational structure. The changes in organisational structure were also helpful for increasing the number of skilled artists due to increased focus on different districts with unique art specialisations. It has also been able to eliminate the limitations of previous organisational system with its change management approach. With the new structure, it became possible for Arts Council England to search efficiently for artists with exclusive skills because they would not befall under the purview of specific regional division. Hence, the strategies and policies implemented by Arts Council England can be regarded as standard event of successful organisational change. References Arts Council England, 2009. Structure Charts — as from April 2010. Media. [Online] Available at: http://www.artscouncil.org.uk/media/uploads/organogram_nov_09.pdf [Accessed April 20, 2012]. Arts Council England, 2010. Arts Council England Structure Chart 2010. Media. [Online] Available at: http://www.artscouncil.org.uk/media/uploads/transparency/2010-10-20_OrgChart_without_names_0507.pdf [Accessed April 20, 2012]. Barzilai, K., No Date. Organizational Theory. Western Reserve University. [Online] Available at: http://www.cwru.edu/med/epidbio/mphp439/Organizational_Theory.htm [Accessed April 20, 2012]. Daft, R. L., 2009. Organization Theory and Design. Cengage Learning. Johnson, G., No Date. Mapping and Re-Mapping Organisational Culture: A Local Government Example. White Papers. [Online] Available at: http://www.strategyexplorers.com/whitepapers/Culture-Web.pdf [Accessed April 20, 2012]. Jacobides, M. G., 2007. The Inherent Limits of Organizational Structure and the Unfulfilled Role of Hierarchy: Lessons from a Near-War. Organization Science, Vol. 18, No. 3, pp. 455-477. Krishnan, G., 2010. Case Analysis. ICFAI University, Dehradun. [Online] Available at: http://www.scribd.com/doc/53686237/Arts-Council-England [Accessed April 20, 2012]. Poole, M. S., 2000. Organizational Change and Innovation Processes: Theory and Methods for Research. Oxford University Press. Sisaye, S., 2001. Organizational Change and Development in Management Control Systems: Process Innovation for Internal Auditing and Management Accounting. Emerald Group Publishing. Scholes, K., 2005. Arts Council England. Pearson Education Limited. [Online] Available at: http://pgsm.co.uk/members/teaching/strategic/arts_council.pdf [Accessed April 20, 2012]. Scholes, K., 2004. Arts Council England – New Structures for New Challenges. Sheffield Hallam University. The Leadership Trust, 2007. Arts Council England. Case Study. [Online] Available at: http://www.leadership.org.uk/files/uploads/21.pdf [Accessed April 20, 2012]. Read More