Factors Affecting Organizational Structure and Change

This project delves into the complexities of organisational restructuring, examining how market, technology, customer, and environmental changes can impact a firm. It also discusses various strategies that management can employ to address uncertain business situations, including streamlining procedures, encouraging open communication, and aligning individual and organisational interests.

Case Study

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
CASE EVALUATION ...................................................................................................................3
Analyzing the factors which are influencing an Educational institution to restructure itself. ...3
Identifying the challenges faced by an organization in restructuring procedure. ......................5
Analyzing the uncertainties introduced by the changing external environment.........................6
Explore the effect of change in organizational culture on performance of an institute. ...........7
PROPOSED SOLUTIONS AND RECOMMENDATIONS .........................................................8
Recommending effective tactics for enhancing collaboration between individual and group. . 8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organisational theory can be defined as a set of interrelated concepts which assist an
individual in developing the understanding about behaviour of employees those who interact
with each other while performing activities for accomplishing desired objectives. It is mainly
concerned with identifying the effect of people action on the company as a whole. The structure
plays very much significant role in the success of firm. Organisational theories support an
enterprise in addressing one of the best structure for solving specific problem. Few
organisational theories are scientific management, classical, administrative, bureaucratic, modern
and neo-classical theory.
The report will have focus on assessing the forces which are shaping the business
structure in context of Educational and training institute Ltd. Business entity offer different short
as well as long term courses. Study will highlight the key components of organisational structure.
CASE EVALUATION
Analysing the factors which are influencing an Educational institution to restructure itself.
Education and training institute Ltd. Is an organization which offers long as well as term
courses. Mission of an institution is to deliver assist trainees in their professional development
by delivering them with high quality training and education. An organization is growing at very
rapid rate. It is very much important for manager in Education and training institute Ltd. To
address the forces which is effecting the organizational structure's, as this static will provide
them in aligning the organizational structure with long term goals. It has been analyzed from the
given case scenario that Education and training institute Ltd is fostering growth at rapid rate.
The fact which ha been found by analyzing the case study is that Education and training institute
has undergone expansion in 2017. An organization has acquired the new building which has
forced an enterprise to restructure itself (Gunasekaran, Dubey and Ngai, 2018). It has also
positively influence an organization to bring changes in its operations as well as business
strategies. Neo classical theory of organization structure states that an enterprise is combination
of both formal and informal structure. The factors which influence organizational structure are :
Business development stage: The need or choices related to restructuring the business structure
is recognized at the life cycle stage of business. For instance, there are few organizations which

re their development stage, management in such enterprise has concentration on maintaining the
power as well as authority in their hands. In context of Education and training institute Ltd., firm
is at growth stage, management in business entity can now shift their control and delegate
authority as well as responsibility to lower level of employees. An organization in order to shift
the control need to restructure its structure. Firm needs to adopt pyramid like structure.
Environment : Increase in the intensity or level of competition in an industry might force
Education and training institute Ltd. To restructure itself. In context of Education and training
institute Ltd high level of uncertainty ion environment has influence the firm to take decisions
related to restructuring itself. Changes in business environment has direct as well as significant
influence on the decision making by management in Education and training institute Ltd. In
addition to this, changes in environment have great influence on the firm potential to run
effectively as well as efficiently. Changes in business environment quickly might force company
to restructure itself. Business entity in order to cope up with changes in business environment
might need effective coordination between functional units for that firm might need to
restructure itself. Business culture as well as working environment can force management top
bring changes in organizational structure. For instance, Before the expansion of business,
Education and training institute Ltd., was operating its business under organic business design,
There was free flowing style of management due to which an enterprise has to face various
issues such operational problems, decline in sales, etc. Then management in an enterprise has
planned to implement mechanic design and they have implemented new code of conducts along
with new level of hierarchy in structure. The changes in structure has been done in order to reatin
control on people as well as their activities.
Technology : It is considered to be as important resource which is required by companies for
converting raw material into output. Technology is the factor which decides the type of
organization structure require for the production system. In context of Education and training
institute Ltd. An organization is planning to implement advanced IT systems which means that
for implementing system, an enterprise will require more people those who have high technical
knowledge as well as skills. In addition to this, management in firm will require establishing
separate functional unit for catering to the needs of IT. Business entity is planning to employ IT
for bringing improvement in organization communication. It will also help management in
ensuring free flow of information between different functional units in an organisation.

Customer and market: It is considered to the major factors which force an organisation to
restructure itself. In context of Education and training institute Ltd, decision related to
organisational restructuring is highly influenced by the type of market and customers it serves
(Prideaux, 2018). Customers as well as market are the two important factors which assist
management in determining a need and type of business structure require. In context of
Education and training institute Ltd, customer might demand for the different type of
training in the future, in order to fulfil the needs of customer, an organisation will have to
bring change in its structure. In addition to this, if firm planning to provide services to a wide
variety of clients at different locations in the future, then it will need to have several branch
officers.
Business strategy : structure follows the strategy. If there are any changes made by management
in business strategies then changes are required to be done in structure as well. As there are few
business strategy which requires different or unique business structure. It is required by manager
in Education and training institute Ltd. To reconsider the way they are positioning their products
or service (Enya, Pillay and Dempsey, 2018). For instance, if an organisation is planning to
implement the differentiation strategy and if an organisation wants to achieve leading position in
an industry then it need to adopt the agile structure. In simple words, an enterprise will need to
restructure itself according to new business strategy.
Size of organisation : It includes the number of employees a company is planning to appoint in
the future. In context of Education and training institute Ltd., business entity is planning to
appoint more number of workers in the future therefore, for that firm might need to restructure
itself accordingly.
Identifying the challenges faced by an organisation in restructuring procedure.
The different challenges faced by Education and training institute Ltd. In restructuring
itself are :
Miscommunication among the management : It has been analyzed from the case study that
there was delay in completing the project on time due to lack of effective communication
between employees in management team. Lack of proper communication plan as well as devices,
it was very much challenging for the employees to interact with each other during the
restructuring procedure.

Conflicts among team : The conflicts between employees as well as management has increased.
Manager in Education and training institute Ltd were not working as single unit which has given
rise to other major problems for an enterprise such as disputes among committed, conflict
between committees, decline in morale of workers, increase in number of absenteeism. All these
issues has lead to the unnecessary delay in project. Conflicts has given the rise to the frustration
among employees which has lead to the high level of demotivation which ultimate has negative
effect on their performance (Dadich and Doloswala, 2018). Due to conflicts, management doest
not have focus on the needs of workers, due to which workers have to face difficulty in the
performing their task. It has been analysed from the case scenario that the root cause of the
conflicts between management was due to lack of coalition between organisation’s members, a
disorderly decision making process with bargaining and negotiating playing a big role.
According to the Neo classical theory, he conflicts between the organizational and individual
interest exist, thus the need to integrate these arises.
Centralised decision making : The major challenge that Education and training institute Ltd
has to face during the time of restructuring business in due to centralised system. As only top
level management in an enterprise has authority to make important decision related to the
project, employees have to wait long time for the decisions which lead to delay in procedures
and ultimately the time lag in completion of restructuring process. It was very much difficult as
well as challenging task for firm top complete the restructuring process on time that too without
effecting the customer services.
Undefined roles as well as responsibilities of new management : It has been analysed from
the give case scenario that business entity have to face the challenges as the duties as well as
responsibilities of newly appointed management was not clearly defined. There was high level
of confusion related to the duties.
As per the administrative theory of organisational behaviour, Education and training
institute Ltd can easily deal with the challenges they have faced in recruiting itself by bringing
improvement in five functional areas these are planning, organising, coordinating, directing and
controlling (Hayes, 2018).
Analysing the uncertainties introduced by the changing external environment
In context of Education and training institute Ltd some uncertainties created by changes
in external business environment are :

Macro environmental uncertainty : It is considered to be as the major uncertainty which is
present in business environment. For instance, changes in political, legal and economic factor
can have negative effect on the business performance of Education and training institute Ltd. It
is required by an organization to comply with all laws as this tactic will assist them in
eliminating legal issues. In addition to this, an organization to concentrate on reducing the cost of
production, as this will assist them in accumulating the reserve of revenue or profit which can be
utilized during the economic crisis.
Competitive uncertainty: It includes inability of an organization to establish intensity of
competition in sector. In context of Education and training institute Ltd., firm needs to
concentrate on quality of services as this will help an enterprise in maintaining its position in the
market.
Market or demand uncertainty : this is basically an uncertainty which occurs due to lack of
understanding about the market. It also includes uncertainty about the demand for specific
products or services. In context of Education and training institute Ltd an organization can adopt
the innovation strategy, as this tactic will aid business entity in eliminating such types of
uncertainties in the future.
Technology uncertainty : It is the uncertainty related to change in industrial technological
capabilities and resources. Changes in technology factors can have negative effect on
competitive strength of an organization (Tian and Gamble, 2018). It is required by Education
and training institute Ltd to keep update themselves with technological changes and employ
advance technology at workplace.
Explore the effect of change in organizational culture on performance of an institute.
An organizational culture can be defined as sharing of values as well as belief among
people in an organization. It has been analyzed from the case scenario that Education and
training institute Ltd. Have an effective culture. The culture of Education and training institute
Ltd. Is based i\on three principles these are mutual respect, integrity and transparency. Changes
in management has negative effect on the culture of an organization. Evidence of the fact is that
bureaucratic culture created by new management team has lead to the decline in employee
participation (Overall, 2018). Other evidence is that new management only have concentration
on product and procedures. Managers does not have focus on needs of employees which has lead

to the high level of dissatisfaction among workers. In addition to this, workers those who
working for long time with organization feeling burdensome and they planned to leave the job.
All these small issues occurred to change has given rise to high employee turnover rate which
has adverse effect on business performance of firm.
PROPOSED SOLUTIONS AND RECOMMENDATIONS
Recommending effective tactics for enhancing collaboration between individual and group.
Modern theory of organization emphasizes on integration as well as communication
which is very much essential for enhancing collaboration between individual and group. One of
the effective strategy which can be implemented by management in education and training
institute Ltd is encouraging open communication (Burnes, Hughes and By, 2018). Streamlining
the procedures is another best strategy which can be utilized by manager for enhancing
collaboration between individual and group. As per this hypothesis, manager in an organization
need to align individual and organizational interest as prerequisites which is very crucial for smooth
functioning of business.
CONCLUSION
It has been concluded from the project that the few factors such as market, technology,
customer, environment etc. which can influence an organization to restructure itself. The other
fact which has been found is that changes in external environment can create different types of
uncertainties for firm.
There are various strategies has been suggested in the report which can be utilized by
management in an enterprise for eliminating the uncertain business situations.

REFERENCES
Books and Journals:
Gunasekaran, A., Dubey, R., and Ngai, E.W., 2018. Bridging humanitarian operations
management and organisational theory.
Prideaux, S., 2018. From organisational theory to the Third Way: Continuities and
contradictions underpinning Amitai Etzioni’s communitarian influence on New Labour.
In The Third Way and beyond. Manchester University Press.
Larson, P.D. and Foropon, C., 2018. Process improvement in humanitarian operations: an
organisational theory perspective. International Journal of Production Research, 56(21),
pp.6828-6841.
Enya, A., Pillay, M. and Dempsey, S., 2018. A systematic review on high reliability
organisational theory as a safety management strategy in construction. Safety, 4(1), p.6.
Dadich, A. and Doloswala, N., 2018. What can organisational theory offer knowledge
translation in healthcare? A thematic and lexical analysis. BMC health services
research, 18(1), p.351.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Tian, A.W. and Gamble, J., 2018. Challenged and satisfied: the role of organisational ownership
and employee involvement. The International Journal of Human Resource
Management, 29(19), pp.2780-2803.
Overall, J., 2018. All around the mulberry bush: a theory of cyclical unethical
behaviour. International Journal of Business and Globalisation, 20(2), pp.251-267.
Burnes, B., Hughes, M. and By, R.T., 2018. Reimagining organisational change
leadership. Leadership, 14(2), pp.141-158.
ONLINE:
Factors Affecting Organizational Structure.2019.[ONLINE]. Available through
:<https://smallbusiness.chron.com/factors-affecting-organizational-structure-2778.html>.