Discussion Thread: Changes of Organizations

Postmodernism has had much influence on the structure of organizations around the world. The impact is still evident to date, judging from the huge structural shift that is being experienced globally. The subjectivism, relativism, and skepticism brought about by postmodernism have contributed to the evolution of knowledge. This has led to the emergence of multinational organizations that are taking over the world. Consequently, the concept of recognizing organizational boundaries is being appreciated. The entire process has however been made possible by the applications of ideologies and convictions derived from the organization theory. This paper aims at discussing how organizational change can be achieved by changing the contours of the organization and the effective application of the organization theory.

Organization Theory

Organization theory focuses on portraying the correlation between an organization and its environment (Cornelissen & Höllerer, 2019). It examines the working of an organization by showing how various components relate to each other. For major contours or boundaries changes to be implemented in an organization, the organization theory should be enacted. In other words, the stakeholders should prioritize the focus on the internal and external environments of the organization. There are four major theories that scholars use to support the concept of organizational structure and environment. These theories are discussed below.

Classical Organizational Theory

This theory incorporates the applications of science, bureaucracy, and administration. The main focus is the organization’s output and how the functionality of the employees can be improved. However, the need to accomplish the organizations’ goals comes before the employees’ freedom. The working environment also is not highly regarded as a determining factor in relation to personal comfort and convenience (Cornelissen & Höllerer, 2019).

Human Relations Theory

This theory focuses on enhancing stronger working relationships among employees in an organization. It borrows a lot from classical theory based on its insight on economic rewards ideologies. It is perceived that good working relations improve the overall performance of the organization. This theory argues that employees need motivators rather than stringed rewards (Cornelissen & Höllerer, 2019). Ideally, it is the differences among the various groups of people that bring about a blend of new ideas and definite relationships. 

Modern Systems Theory

This theory aligns with the open system perspective that organizations operate in dynamic equilibrium in which they ought to strike a balance between formal structures and informal structures (Cornelissen & Höllerer, 2019). The main idea-driven across by this theory is that change will always have an impact on the general structure of an organization. A small change might make a huge impact and vice versa. Modern systems theory aims at portraying the essence of effecting reasonable changes in any given organization.

Decision Theory

This theory views conflict among participants in an organization as manageable and resolvable. To achieve this, the management should be competent enough so that all conflicts among members do not escalate to unprofessional levels. This theory advocates stringent managerial styles in ensuring a smooth flow of operations in an organization.

The organizational theory is all about the structure and operational style of an organization (Cornelissen & Höllerer, 2019). The fundamental principles and strategies that keep an organization at its feet are covered under this theory. In implementing any substantial change, there are some basic attributes that an organization should not overlook.

Managerial Styles

The style of management of an organization speaks volumes about its formal and formal structures (Ericsson, 2020). The open system perspective suggests that both the formal and the informal structures of an organization are important and should work hand-in-hand to ensure the common goal is achieved (Beyer & Scott, 2018). On this note, it is crucial for an organization to have a stable managerial structure that accommodates members across all ranks. A good managerial style is one that maintains a good rapport between all the stakeholders involved in the operations of an organization. Going ahead to achieve an organizational change, there should be a well-established managerial style that can steer the organization to the projected levels. Additionally, an organization is defined by its style of managing both the formal and informal structures.

Efficiency

The progress of an institution is gauged by its ability to showcase efficiency in its mode of communication or service delivery. In a world full of competition, ensuring efficiency in an organization becomes a matter of high priority. Technological changes are in most cases aimed at increasing efficiency in an organization. This might range from efficiency in communication channels to efficiency in the production process or service delivery. However, some of these efficiency-themed technology shifts may accrue several impacts to the employees. For instance, some participants might not be conversant with some areas of technology that are being improved. This might consequently impact the efficiency of the individual employees once they cannot function effectively with advanced technology. Although the rational system perspective argues that formal structures of an organization should come first, it is important also to consider the welfare of the individual employees, as proposed by the natural perspective. Therefore, a technological change that aims at increasing the efficiency of the organization should be compatible with the skills and expertise of the individual participants.

Leadership

An organization requires sane stewardship to ensure all operations are running smoothly. In other words, good leadership subdues all the hurdles that an organization might face in its daily routine. For multinational companies, leadership originates from the senior-most member of the organization right to junior-most employees at the grass root (Ericsson, 2020). Leadership is to some extent different from management. Good leaders go beyond their job description in ensuring that everything flows smoothly. Strong leadership is vital while making major changes in an organization because some of the proposed changes will affect the usual mode of operation, which might also affect the productivity of an institution. Good leaders also engage in a productive decision-making process on matters affecting the organization. Every participant in the change-making process ought to be included in the decision-making process. Good leaders should also lead by example for others to imitate (Hebrews 13:7, New King James Version).

Communication

A convenient mode of communication is required for an organization to sail smoothly. Ideally, people from all professional levels ought to have a well-defined way of passing a message to each other. When the communication channels are not efficient, it becomes complicated to execute various operations that directly affect the organization. When making organizational changes, the participants should ensure that an efficient communication channel is factored in. Ideally, it would be pointless to implement major changes and fail to invent a strategy to communicate them. Communication is to a great extent the backbone of all organizations both multi-national and local ones.

Group Behavior

The running of an organization is not usually a one-man’s responsibility but a collective responsibility. When making major changes in an organization, the stakeholders should consider the implementation of efficient group behavior. In simpler terms, group behavior is the culture of working in teams of individuals in the same industry. Group behavior enhances sharing of ideas and promotes inter-professions learning among the stakeholders. This component of organization theory has proven to be effective in both huge and small establishments. As a matter of fact, multi-national organizations are embracing this concept for their global projects as well as inter-departmental tasks. With group behavior, it becomes easier to cope with new working environments, especially in cases in which the organization has shifted its operations to a new geographic or economic region ("Factors of Human Resource Management Practices Affecting Organizational Performance", 2020).

Organizational Culture

Every organization has its own way of doing things that is different from others. In other words, organizations have cultures that distinguish them from the rest. These cultures may entail employee relationships, managerial style, and decision-making processes. Culture is an essential factor to consider when making changes in an organization. Ideally, the changes made should not discard or disorient the existing culture of the organization. Most cultures help an organization to climb to higher levels of achievement. Such traditions should be preserved and used for future engagements that concern an organization. Additionally, most customers usually stick to a certain organization because of their cultures and traditions. A technology change should similarly accommodate the organizational culture and allow the participants to adapt (Zakic et al., 2015).

Changing Contours of Organization

Organizations have parameters that characterize their cultures, managerial styles as well as leadership structure. In most cases, these boundaries are not fixed. They change with time, depending on the specific needs of the organization. The change, however, must align with the goals of the organization and the environment (Fisher, 2019). In the modern world, organizations are constantly changing their mode of operation and adopting newer and better ways of achieving the same tasks. Multinational organizations have been at the forefront in implementing organizational changes at their institutions globally. The quest for change has been characterized by series of transformational concepts and ideologies. The postmodern era has played a great role in shaping the outlook of organizations in the modern-day world (Fisher, 2019). Organizations have evolved from unitary to multi-paradigm, from monoculture studies to multicultural studies. The multicultural aspect has brought about diversity in organizational coordination (Fisher, 2019).

Diversity and Multinational Organizations

Different people have different ways of doing things. This applies even to institutions and networked organizations. Diversity does not only refer to the different ways of doing things. It also implies facing new challenges and getting new ideas (Fisher, 2019). Diversity is to a great extent a representation of how different people feel about a certain ideology. The difference in their opinions and views is what constitutes diversity. Multinational organizations ought to have a better understanding of diversity since they involve stakeholders from all walks of the world. One might think that running an organization full of people with diverse ideas and professional backgrounds is close to impossible. However, according to sociologists, it is the diversity that makes them stand out. Although the difference in backgrounds might present a few limitations, the advantages of diversity significantly outweigh them. Most multinational organizations prevail in diversity since there is a pooling of ideas from different participants (Zakic et al., 2015). During organizational change, multinational organizations usually design strategies that suit their socio-economic diversity. In some cases, diversity also translates to a different or new wave of competition. This necessitates the stakeholders in an organization to implement strategies that cater to this kind of diversity (Zakic et al., 2015).

Every once in a while, an organization should modify its mode of operation and service delivery. Various types of organizational networks have the capability to undergo contours changes. For instance, strong contact networks can improve on their managerial styles and leadership formation before embarking on making changes in an organization. Most multinational companies prefer this type of network organization since it allows them to interact with high-level professionals in the industry who are likely to offer great insight while making organizational change (Fisher, 2019). The social media type of organizational network can also undergo changes in contours with minimal input from the stakeholders. Although there are no major constraints in this form of network, there are still changes that can be made to improve the overall performance of an organization. For instance, improving the communication channels would boost the passing of messages among the members (Fisher, 2019).

Environmental Factors Affecting Organizational Contours

Changing contours of an organization is affected by several environmental factors such as economy, politics, and competition (Zogjani & Raçi, 2018). For instance, political instability might lead to the breakdown of an organization’s operation in the affected regions. This might hinder the efforts to implement a change in an institution or in some cases interfere with the already established network organizations. The economy, on the other hand, affects the market stability of the region, which might affect the overall performance of the organization (Zogjani & Raçi, 2018). Logically, it is tough to effect organizational changes during a downsizing economy. Competition is yet another environmental factor that affects the process of changing the contours of an organization. Ideally, the changes to be made should handle the competition from similar players in the industry (Zogjani & Raçi, 2018).

Conclusion

In conclusion, the organization theory forms the basis for changing the contours of an organization. Ideally, this theory provides a framework for a successful organizational change or shift with an insightful consideration of the formal and informal structures of an organization. To expound on organizational theory, scholars have compared and contrasted classical, human relations, modern systems, and decision theories. The message being passed over is the importance of the collaboration between the informal structures and the formal structures of an organization. The open systems perspective presents some insights on this point and agrees that it is only by the joint effort of the two parties that substantial progress can be achieved. The theory goes ahead to mention leadership, managerial styles, group habits, efficiency, communication, and organizational culture as the key determinants of the success of an organizational change and progress. Changing contours of an organization works well if the environmental considerations have been made. These considerations are the competition from other key players in the industry, political environment, and economic situation of the region. When an organization manages to strike balance between its internal environment and the external environment, it becomes easier to implement various changes in contours or organizational boundaries.

References

Beyer, J., & Scott, W. (2018). Organizations: Rational, natural, and open systems. Administrative Science Quarterly, 29(1), 134. https://doi.org/10.2307/257765

Cornelissen, J., & Höllerer, M. (2019). An open and inclusive space for theorizing: Introducing organization theory. Organization Theory, 1(1). https://doi.org/10.1177/2631787719887980

Ericsson, D. (2020). Reflections on constructing time in organizational change processes: A virtuous managerial interest. Journal of Organizational Change Management, 33(5), 821-833. https://doi.org/10.1108/JOCM-05-2019-0126

Factors of Human Resource Management Practices Affecting Organizational Performance. International Journal of Organizational Leadership, 9. 184-197. https://ijol.cikd.ca/article_60513.html

Fisher, D. (2019). Book review – changing contours of work: Jobs and opportunities in the new economy. People, Place and Policy Online, 12(3), 269-271. https://doi.org/10.3351/ppp.2019.9742566945

Zogjani, J., & Raçi, S. (2018). Organizational change in business environment and the main barriers during organizational changes. Academic Journal of Interdisciplinary Studies. https://doi.org/10.5901/ajis.2015.v4n3p83