Organizational Redesign
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Organizational Redesign
Introduction
With the transformation of business processes to mirror current emerging business demands, there arises a need to redesign the organizational structure to ensure compatibility. Some of the major factors that are normally affected include career paths, changes in positions and task descriptions, organizational charts and succession arrangements among other changes. While theoretically it is relatively easy to use manual or digital methods to construct an organizational chart, it is relatively challenging to implement the same organizational chart on the ground. This will involve reestablishing the main objectives of the organization, selecting the appropriate staff and then determining the major requirements needed to make the new organization function. The proper cycle is to first design the businesses processes then construct the most suitable organizational structure that would work with those processes.
Redesign and reorganization can be understood to mean transformation. This change encompasses transformations in the relationships among the colleagues as well as the duties and tasks in addition to the private changes that accompany all organizational changes. Redesign ventures are typically challenging and take a longer duration before they are eventually concluded. Organizational redesign creates several distressing times for the parties involved, and most of them waver when presented with difficult decisions that have little space for compromise (Leavy & McKiernan, 2009). Successful redesign efforts should be based on stable organizational evaluations and a discussed and feasible long-term business plan. The expertise that are applied in the formulation stages that forge future strategies are developed over long periods of experience with a wide diversity of corporate cases in a broad variety of geographical, market and industrial settings. Evidently, the more a leader can prepare in expectation of organizational change,the easier it will be for the employees and the organization to embrace the change.Evaluating the causative factor behind the change andconstructing a strategy tofacilitate an efficient transition to the new design is significantin a manager’s job description.Leaders need to be conscious of the fact that organizations change affects several interconnected dimensions including the targeted group, the level of change expected and the amount of preparation involved.
Need for Organizational Design
Effective organizational designs can be considered the cornerstones upon which leaders can base their leadership regimes within the workplace. The type and nature of organizational design affects the general perception and experience of an organization and defines the official and informal methods of getting tasks accomplished (Leavy & McKiernan, 2009). Regrettably, many managers are essentially oblivious of or ill prepared to employ this device and, consequently, numerous organization designs end up realizing losses in a manner similar to the Winchester architecture that consisted of a massive mansion with numerous rooms and a poor structure and organization that realized huge losses for its owners. Many organizations lack appropriate plans exposing them to the creation of departments that have no purpose and fail to deliver substantial results. The following reasons provide a food rational for organizational redesign in most formal organizations.
Strategic shifts are an appropriate reason for an organization to make a redesign. When an organization makes drastic and wide changes to the business strategy for instance changing the main products or the methods of implementing differentiation in the market, it is necessary for the organization design to be reevaluated. The strategic shifts come about due to changes in the environment, such as rivalry, policies and innovation in technology or phase at which the organization is currently experiencing. Whatever the case, the advantages of the new strategy have changed and consequently, performance expectations would shift. Accordingly, the organization’s structure will have to be redesigned to handle the new work needs.
Similarly, the redefinition of the tasks done in the organization will provide a reason for redesigning the organizational structure. How the work will be done will depend on the new technologies and approaches. Therefore, the availability, quality and cost of the resources will influence a subsequent change in the organization structure to produce a synchronized system.
Political and cultural changes in the environment provide a suitable reason for an organization to engage in the redesign process (Burke, 2008). The organizational culture refers to the methods of accomplishing tasks and interaction among the employees. Altering an organizational culture is a challenging and cumbersome task for most leaders. In most occasions, the change can be implemented by transforming and realigning the official organization. These deliberate changes to the design are normally employed to coerce the desired behavior change until it is accepted as part of the organization (Leavy & McKiernan, 2009). The last and most obvious reason is when the current organizational design fails to work effectively. External signs such as the inability to respond to changes and poor expertise in handling customer’s demands are a sure indication of the failure. Internal indicators include poor coordination among the employees. Other signs include difficulty in defining the roles of different employees that result in wastage of time and resources. The workflow processes also end up being disrupted regularly. All these reasons are valid enough to warrant conducting an organizational redesign process. Whatever the case, it is imperative to realize that a manager can use organizational redesign as a solution to management problems but only if it was used for the right process.
Internal and External Factors Affecting Organization Redesign
As suggested in the earlier section, several internal and external factors drive organizational change. Fully functional organizations must be able to work effortlessly with the different aspects of the environment including political, social and economic fields. Organizations that cannot adapt quickly enough to preserve their authority or the resources necessary for their operation either cease to exist or become absorbed by other organizations. The most significant external factors include development of scientific knowledge, explosion in technology, shifting career roles and transforming demographics in the American workplace. The increase in scientific knowledge has been exponential over the last decade with numerous scientists writing articles concerned with organizational management. This influx of knowledge constantly shapes the approaches and theories used by managers in designing their structures. Assisted by advanced communication technologies, scientific management knowledge is quickly disseminated to different organizations and managers (Leavy & McKiernan, 2009). Consequently, managers and leaders must update their approaches with the latest and most efficient scientific solutions (Hopkins, Mallette & Hopkins, 2013). Other factors such as globalization are also influenced by scientific changes. Professional roles are another external factor that drives organizational redesign. The current shift from conventional professions to independent occupations that occupy specific positions in the organization has resulted in employees of the same profession being distributed in different levels of the workplace (Chan & Soong, 2011). Some professionals work on their own terms while others work in groups and in different departments. This new approach towards professionalism has transformed the way in which tasks are allocated among employees and in the process, affecting the structure of the organization. The emergence of new professions has also influence redesigning efforts. Internal factors that drive organization redesigning include fellow employees, organizational culture, events and other internal aspects. These factors are similarly influential and work hand in hand with external ones to ensure that the organization constantly evolves.
People Alignment and Its Role in Strategic Renewal and Organization Change
Organizational alignment can be defined as the absence of a constantly lucid comprehension of the organization’s principles throughout the business organization’s complete value chain. An apparent perception of purpose includes the outlined vision, mission, principles, core capabilities, tactics, policies, processes, employees, products, clients, suppliers, and sociopolitical preciseness. Conventional definitions of organizational alignment were focused on communications, strategies, and processes. Modern definitions of organizational alignment assume a value-based strategy assessing the business organization from its primary values to minor and tertiary outside associations surrounding suppliers and vendors (Leavy & McKiernan, 2009).
Within most organizations, staff expenses form a major part of the overall company expenditure, so it is imperative that these employees are dynamically engaged in the core business in the company. More and more, in an environment where product differentiation does not count for much, the introduction of people alignment to an organization strategy can provide a competitive advantage over other rivals. Aligning an organization’s staff, processes and strategy is a problem and almost unattainable in most situations. However, when the ideal alignment is achieved, it significantly enhances the probability of realizing the desired results. Alignment enables an organization to understand the relationships between different variables as well as the consequences for organizational change. One of the main approaches used in people alignment is pyramid building. This approach relies on decision-making, dialogue and brainstorming among the different employees with the purpose of determining their skill sets and experiences (Chan & Soong, 2011).
While enthusiasm and excitement for organizational alignment is allowed, tolerating a high level of non-conformity within the workplace. Exaggerated alignment efforts can lead to hostility, suppress inventiveness, and restrict innovative opinions resulting in a company with a repressed feel among the staff. Every organization has its special group corporeal character and need for uniqueness. Most organizations need to be perceived as strictly aligned and negotiate their corporate distinctiveness as a market differentiator. Auspiciously, non-conformists are a rare case within the formal environment. These non-conformists should be handled with care to ensure that they are integrated into the system because they are just as important as the other employees.
Conclusion
The benefits of an aligned organization are easily visible internally and externally. Internally, the organization exhibits a high level of commitment among the staff that is accompanied by loyalty and self-direction (Pasmore, Woodman & Shani, 2010). The organization increases its chances of being viable and stable simultaneously. Externally, the company portrays a new image that can attract new customers, vendors, suppliers and rivals. In the process of organizational change, several problems exist that can hamper the successful realization of the new structure. The common challenges include little time, lack of support from the employees and a shortage of leadership qualities. However, if these challenges can be overcome, organizational redesign can turn around a company’s sales volumes and reputation significantly.
References
Burke, W. W. (2008). Organization Change. Thousands Oaks (Calif.: Sage publ.)
Chan, D. L. H., & Soong, S. C. (2011). Strategic repositioning in a dynamic environment. Library Management, 32, 22-36.
Hopkins, W. E., Mallette, P., & Hopkins, S. A. (2013). Proposed factors influencing strategic inertia/strategic renewal in organizations. Academy of Strategic Management Journal, 12, 2, 77-94.
Leavy, B., & McKiernan, P. (2009). Strategic leadership: Governance & renewal. Basingstoke [England: Palgrave Macmillan.
Pasmore, W. A., Woodman, R. W., & Shani, A. B. (2010). Research in organizational change and development: Volume 18. Bingley, UK: Emerald.