Report: Literature review report based on changing organizational structureIntroductionIn the case of Sir Richard Branson the potential problem caused by his maverick way of running his business is lack of clear cut organizational structure and culture. Sir Richard Branson is trying to use the model of distribution of authority. This is where decision making is distributed among various departments in a company working closely with each other in doing their different tasks. An organization structure is where different types of components have got different patterns of relationship; this is where there is arrangement between different people and different department among themselves when working together.
Literature reviewOrganizational structure and culture is the belief which has been entrenched in an organization over a long period of time. There are organizational cultures which are hard to change and take a long time in changing and there are some which are weak and can be changed in time. Changing an organization culture and structure can be the hardest part a new manager can be faced with especially when he is new in an organization which has had a long standing culture entrenched in it.
It may take years for a change to take effect in the organization. The long standing organization structure might either be good for the company or a problem to the company since some of them might be hurting the company in the long run so the manager has to find a way to replace this culture with a much more workable culture which the employees will be able to enjoy. Take the case study of Pfizer. In the book management concept: managing in a global environment on page 202,Jordan Cohen a senior director with Pfizer noticed that the employees who were employed with Pfizer from accredited universities were spending 20% to 40 % of their time on support work which included creating documents, typing notes, doing research manipulating data and scheduling meetings and only 60% to 80% was used on knowledge based work like strategies, innovations, networking, collaborations and critical thinking.
So to avoid all this he researched and brought in a better way for the employees to give their maximum attention to their work and not to support work he outsourced these work to a company in India and this left the employees with enough time to concentrate on the knowledge based work needed.
It gave the employees enough morale to work since they knew the research and typing part were taken care of. All they have to do is click and communicate. This brought an amazing change to the culture of this company. Methodology/ Assessment techniquesLiterature analysis was used to single out and define the distinctive characteristics which could not be disregarded regardless of the environmental issues and then this was arranged and designed into knowledge based collaborationsFindings This report is going to argue about the need for organizational culture in order for the companies to be able to realize the employees’ full potential.
Organizational change is imperative for any organization in order for it to succeed. Research has proved that this is needed for the best outcome from employees in an organization. According to Hannan and Freeman in their article structural inertia and organizational change, they state that most prominent organization theories explain variability in organization characteristics that is diversity through reference to the history of adaptation by individual organization but the argument was still that all forms of changes occur principally at the population level with forms of organization replacing each other as condition changes.
Most organization culture should change with the conditions since maybe the culture in one company may not be suitable to another company or the kind of situation the company finds itself in at such a time. Take a case of James McNerney Jr in page 394 of the book management concept: managing in a global environment, who took over as CEO of 3 M company and wanted to bring his old company at General Electric and brought it to 3M he soon learnt that what worked at GE was not working at 3M.
His first realization was in order to be effective he has to change the organizational structure of the company 3M before he is able to implement his ways of working.