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Managing Changes - Renewing Organizational Structure and Culture

In their 2005 book, Understanding and Managing: Organizational Behavior, Jennifer George and Gareth Jones define organizational structure as "the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate and work together to achieve an organization's goals." A logical consequence to an organization's structure is the resulting culture, which George and Jones further define as "the set of shared values, beliefs, and norms that influences the way employees think, feel, and behave toward each other and toward people outside the organization." Finding the right structure for one's organization is vital to its strength and longevity. Appropriate structures are commonly found by trial and error; most continue to evolve as the organization enters different stages of its existence. Structures are defined and redefined in accordance with the organization's strengths and weaknesses, maximizing one while attempting to decrease the other. Over the course of change of structural 'eras', so too will the culture change.

Culture is more than just a word; it embodies several ideas: Culture refers to the perspectives, practices and products of a social or professional group. An organization's culture holds within it, its integrity, its ethics, its personality and attitude. Organizational culture is the invisible billboard and silent announcement proclaiming its rules of engagement. Culture is a group's particular ideas about authority, hierarchy and communication styles. Culture is shared values across an organization, along with consistent business-related (and to some degree social) ways of behaving that express those shared values.

Aberdeen and Green River: Similarities, Differences and Challenges

FMC North America is scattered among 89 separate facilities. FMC Aberdeen and FMC Green River, both in the northern mid-west of the United States, share a common 'parent company', corporate guidelines and image, and similar operating values and systems. Their management teams, however, have several obvious differences. Organizational strategy, structure, and culture are among the more striking distinctions between the two sister plants. Green River is a multi-facility entity where management is very structured and hierarchical, and produces multiple products for multiple customers. Green River's transactional management model lacks an ability to share information, share decision-making responsibilities, and does not encourage teamwork. Conversely, Aberdeen's participatory management model, single product, and single customer design sets itself apart not only from Green River, but from any other FMC facility. Bob Lancaster, Aberdeen's pioneering transformational leader held the belief that an organization cannot exist in an environment of fear, and that universal trust and respect are the foundation of a successful company, and the key to organizational commitment. Aberdeen and Green River face unique challenges, which necessitate distinct approaches tailored specifically to each organization.

Organizational Structure

Ken Dailey, the Green River Plant Manager has observed and researched the structure, strategy and culture at the Aberdeen facility. He believes that the configuration and approach at Aberdeen is in line with his beliefs and method of management. He further believes that the same strategies can be instituted at Green River, with the appropriate customizations given the vast differences between the two facilities. The success of Green River's restructuring will depend heavily on the planning capabilities and actions of its reorganization team. To that end, he recognizes that his leadership will be relied upon by Green River's workforce and that the team of managers will need to be comprised of individuals who hold the same beliefs and values as his own. In addition, he understands that organizational restructuring is an ongoing, ever-evolving process. He knows that he will need to be thorough in selecting the members who will help plan Green River's new organizational design - one which is built on a foundation of trust and respect. In doing this, the team must consider social, cultural, technological and environmental elements. With regard to social and cultural factors, the reorganization team will need to exercise emotional intelligence into its discussions and design framework. The team will need to recognize different personality types, working styles and skill levels. It will be an important component in building effective teams on which the new structure will be based. Identifying the right combination of individuals with the right combination of strengths, weaknesses, creativity, curiosity, and confidence - to name but a few - is pivotal to achieving a successful model. In addition to staffing effective teams, the organization will need to offer its teams updated production, communication and computer systems, particularly because virtual team participation and involvement will play a critical role due to Green River's satellite locations; therefore, significant research into various providers of technology catering to organizations reliant on its virtual teams will need to be done. Dailey will need to solicit proposals from vendors who can offer insight into how technology can be customized to achieve the goals he and his reorganization team have identified, while at the same time be user friendly enough as to not intimidate or create an unrealistically steep learning curve.

Of any action Ken Dailey can take, effectively communicating is the most critical. Dailey must continuously earn the trust of his employees, particularly because he will face much rigidity from employees who naturally see change as a threat to their respective comfort zones and job security. The fact that Green River has a long standing relationship with a union, which may now become unnecessary, will cause significant unease with individuals who see the USWA as its only advocate. Often, while the idea that 'Employees are an organization's greatest asset,' is heralded throughout organizations, the reality in the eyes of its workers is that the sentiment is only for show and is not actually a core belief to upper management. This belief is inherent in participatory management, made clearly evident by the inclusion of employees in decision making responsibilities, and self-managed teams. Dailey will need to be able to promote the benefits of the organization's change for Green River as a whole, and for the entire workforce itself. Keeping in line with his commitment