Organization Structure Case

1. Introduction

 Defining the term ‘organization’ is not a simple task due to the variations of organizations shapes and purposes. There are many definitions cited in Connor et al. (2012). Huczynski and Buchanan’s attempt to define organization was one of the clearest definitions, as they defined it “a social arrangement for achieving controlled performance in pursuit of collective goals” Huczynski and Buchanan (2007, P6) cited by Connor et al. (2012, P2). Organizations consist of many elements such as organizational design, strategy, structure, culture and change. This essay will take three elements of organization. Firstly, it will define organizational culture, organizational change and organizational structure. Then, it will discuss the relationships between the three elements.

1. Organizational change definition

According to Dr Sommerfeldt (2014), organizational change means ‘permanently altering patterns of organizational behaviour’. The main drivers for organizational changes are facing; crises, new competitors in markets, unsatisfied customers, complaining staff, reduction of yield, merger and reforming organizations (Bremer, 2010). Seventy percent of all organizational change projects are unsuccessful (Sommerfeldt, 2014). It seems that a successful change in organizations are hard to achieve.

1. Organizational culture definition

Defining culture is complex and difficult (Wankhade and Brinkman, 2014). Smircich and Morgan (1982) cited in Carlstrom and Ekman (2012, P175) identified culture as ‘the glue that makes up a common identity between different individual’. It is valuable to understand the organizational culture before discussing the relationship between organizational culture and organizational change. Deshpande et al. (1993) cited in Sharimallah et al. (2011, p 617) defined organizational culture as ‘a pattern of shared values and beliefs that help individuals understand organization functions and provide them the norm for the behaviour in organizations’.  Organizational development is influenced by organizational culture to create new behaviours (Carlstrom and Ekman, 2012). When a new behaviour is introduced to an organization, this means that the organizational culture has been changed.

1. Organizational structure definition

Organizational structure defined by Needle (2010, p176) as “the grouping of activities in most suitable manner to achieve the goals”. The organizational structure can provide many types of structure that reflect different descriptions and clear chain of commands (Connor et al., 2012). Certain strategies require specific organizational structure such as; functional, multidivisional, project team and matrix structures (Connor, 2012) (Needle, 2010).

1. The relationship between organizational change and organizational culture

 Continuous changes in organizations are usually created by survival needs (Dr Sommerfeldt, 2014). Organizations, which choose to expand by acquisition or merger, are examples of the need to seek identical cultures (Smith, 1998). Big companies, which grow through merger, faced many challenges (Denison et al., 2012). For example, when United Bank (local bank in Saudi Arabia) merged with Cairo Bank in Saudi Arabia in 1997. They faced many challenges such as resistant of change especially culture change by some employees in both banks. Those employees who cannot adapt with the new practices and technology upgrades, consequently, some employees resigned. This illustrates the influence of organizational culture on the organizational change.

 Carlstrom and Ekman (2012, P175) argued that Elwing (2005) has shown that loyalty to the organization and effective communication culture encourage employees to favour changes. However, it can be argued that Elwing’s claim is not always accurate because employees with high level of loyalty can resist any change, that they feel would affect the performance or the image of their organization, more than less loyal employees.

Changing the organizational culture leads to organizational culture development (Carlstrom and Ekman, 2012). Some of the new leaders in organizations came with new visions that demanded the change of many layers in their organizational culture (Dr Sommerfeldt, 2014). However, if experts, who share same targets and values, lead the culture development, the health organizations develop their own culture (Carlstrom and Ekman, 2012). In the health organization, the important element of the change process is the vision of organizational culture (Carlstrom and Ekman, 2012). This illustrates the influence of organizational change on the organizational culture. It seems like communicating relationship.

1. The relationship between organizational culture and organizational structure  

According to Needle (2010), many factors can influence organizational structure, one of these factors is the culture of country of origin. Certain countries would favour specific structures depending on the culture, for example, French organizations prefer steeper hierarchy’s structure in comparison with the UK organizations (Needle, 2010). Momeni’s study supports the argument that the culture of organization influences its structure (Momeni et al., 2013). The organization culture is the outcome of the organization structure (Kesler, 2014). This illustrates that the organizational culture follow the organizational structure.

On the other hand, structure may reverse particular organizational culture like team structure for the organization, which prefer the involvement of teams as a decision maker (Needle, 2010). This illustrates that the organizational structure follow the organizational culture. It seems like collaborating relationship.         

1. The relationship between organizational change and organizational structure

Chandeler (1962) cited in Needle (2010) noted that employees on supervisor level might obstruct any organizational structure change. The resistance against structure change is a major challenge that needs to be faced and adapt to environment in order to survive and success (Needle, 2010). This means the change influence the structure.