Business Management Organisation Theory: ETI Restructuring Report

This report provides a comprehensive analysis of the Education and Training Institute Ltd (ETI) and its restructuring process. It explores the factors influencing the institute's decision to restructure, the challenges encountered during the process, and the impact of external environmental uncertainties. The report also examines the influence of organizational culture on ETI's performance, highlighting the importance of value-based leadership, clan culture, and the pitfalls of bureaucratic culture. Furthermore, it delves into effective tactics for enhancing collaboration between individuals and groups within the organization, emphasizing the need for clear communication, trust-building, and clarified decision-making authority. Finally, the report outlines long-term strategies for resolving organizational issues, including strengthening internal design and adapting to technological changes. The analysis incorporates relevant academic literature and provides valuable insights into organizational management and business development.

Business Management
Organisation Theory

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 2......................................................................................................................................1
1. Factors influencing institute to restructure the organization and ......................................1
2. Uncertainties introduced by changing external environment and appropriate
recommendation to uncertainties............................................................................................2
3. Impact of change in the organizational culture on the performance of the ETI.................3
4. Effective tactics for enhancing collaboration between individuals and groups and long term
strategy to resolve the problem...............................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
This study highlights the factors which influence the Education and Training Institute Ltd
(ETI) to restructure the organization and analyse the challenges faced by the organization in
restructuring process (Barry, 2017). This study also analyses the uncertainties faced by institute
due to changing external environment and includes necessary recommendation to the
uncertainties.
Furthermore, this study also highlights how change in the organizational culture impact
the performance of institute. It also includes effective tactics for building relationship between
individuals and groups and evaluate long term strategy for effective working of organization.
PROJECT 2
1. Factors influencing institute to restructure the organization and
Education and training institute Ltd is a London based training institute which aims to
provide high quality education and training and offers around 30 long term and short term
courses.
Factors influencing institute to restructure the organization.
Institute aimed at expanding the business to diversify the scope of area by offering large
range of courses which will help in growth and success of the business. Institute function under
organic design which lack written rules and regulations which leads to lower productivity and
efficiency at workplace (Argenti, 2018). Organization had loose hierarchical structure which
leads to ineffective decision making and lower profitability. This also hampers the growth of the
organization which leads to lower operational efficiency and productivity. Institute aims to build
strong organizational structure which leads to achieve goals and objective of the organization
effectively by effectively implementing strategic plans which are beneficial for the growth and
expansion of the company.
Challenges faced in restructuring process.
Restructuring of the organization was a major challenge for the organization. Institute
aimed at shifting its focus from organic design to mechanic design which leads to strong
operational efficiency.
 Implementation of strategic and operational plan: Institute faced major challenges in
implementing various strategic and operational plans which were necessary for the
growth of an organization which eventually hamper the productivity of institute.
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 Miscommunication: Restructuring in the organization leads to increase communication
gap among the management and individuals in an organization which eventually lowers
the productivity (Schaltegger, Burritt and Petersen, 2017).
 Inefficiency in implementing project on time: Management of the organization delays
in implementing important plan or projects which leads to inefficiency in completing
work on a timely manner.
 Unstructured hierarchical structure and undefined roles: Overlapping of roles in an
organization leads to increase conflict within the organization which leads to poor
coordination and disagreements within various department at workplace.
 Time consuming: Restructuring process was time consuming which deviates
management from focusing on core project which are important for growth of
organization.
 Mismanagement and chaos in organization: Restructuring process poses major
challenge on the working of organization which led to increase in frustration and chaos
and lower efficiency of work (Erasmus, Strydom and Rudansky-Kloppers, 2016).
2. Uncertainties introduced by changing external environment and appropriate recommendation
to uncertainties.
External environment consist of all those factors which are outside the control of the
organization and influences business operations. Environmental uncertainty means that
organizational lacks factual and conceptual information which are necessary for the growth of
the organization.
 Competitive factors: Large number of new and powerful competitors are entering into
the market in the same industry. This leads to lower market share and increased
competition.
Recommendation: Institute need to focus on its core activities and improvise the quality of its
services by implementing new strategic plans which help them maintain a competitive edge in
the market. They should also focus on maintaining relationship with its trainees to enhance their
customer base which eventually increases productivity and profitability of the company
(Chandler, 2017).
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 Political factors: Government enforce various policies and regulations which are to be
followed by organization. ETI expands its business by creating various new departments
which leads to implementation of various laws and procedure according to the
department. This creates conflict among employees of the company and reduces
productivity. This leads to improper decision making and negotiating and bargaining
plays a key role in the industry.
Recommendation: Management of the organization should work in compliance with the
standard rules and procedures enforced by government by setting defined lines of command
which leads to smooth working in the organization.
 Technological factors: Technology is changing at a faster pace which means that it can
become obsolete very fast (Pearson, 2016). Instructors or trainees of the institute may
face problem in adapting to new technological change which lowers the productivity and
performance of the individuals.
Recommendation: Institute should adapt to new technological changes like robust and advanced
information technology to maintain competitive edge in the market. Management team should
conduct various training programs to enhance the skills and knowledge of employees.
 Legal factors: Institute has expanded business by creating new departments which leads
to unstructured business hierarchical department and non-compliance with law.
Recommendation: Management should adhere to various laws enforced by government on
different departmental structure (Corfield and Paton, 2016). They should meet in regulation with
national standards which leads to smooth working of organization according to the legal laws
and terms.
3. Impact of change in the organizational culture on the performance of the ETI.
Organizational culture consists of employees with different sets of beliefs, attitude,
values, personality and assumptions. Organizational culture is a significant factor which
influences the performance of the ETI.
 Value based leadership theory: ETI maintains high degree of professionalism with
strong uphold values like transparency, morality, gratitude, mutual respect, honesty and
integrity. Management and leaders of the organization motivate employees to work in
uniformity and build strong relationship between employer and employee which
enhances operational efficiency of institute. ETI focuses on strengthening organizational
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values by implementing value based leadership strategy which leads to build level of trust
and enthusiasm among employees.
 Clan culture: ETI improve the performance of the organization by implementing clan
culture which helps create sense of belonging and responsibility in the institute and also
achieve organizational goal effectively and efficiently. This culture lowers employee
turnover ratio and helps retain productive employees in the organization which
ultimately increases performance of ETI. Employees in the organization are treated with
respect which increases employees commitment and engagement towards work and
drives productivity in the organization (Young and Ghoshal, 2016).
 Bureaucratic culture: Implementation of various organizational culture in the
organization hampers the performance of the employees. Management of ETI enforces
bureaucratic culture which leads to negative impact on institute as it reduces employee
involvement and shifts its focus on implementing new process and protocols. Employees
feel demotivated and takes time to adapt to new changes in organization which lowers the
performance and productivity of employees.
4. Effective tactics for enhancing collaboration between individuals and groups and long term
strategy to resolve the problem.
Effective collaboration between individuals in the organization helps attain
organizational goal effectively and efficiently. ETI aims at implementing various tactics at the
institute for enhancing relationship and cooperation between individuals and groups in the
organization (Samson, Donnet and Daft, 2018). This reduces conflict and confusion in the
organization and attain roles and responsibilities effectively.
 Clear communication: Information should be shared by the management to its
subordinates in a clear and transparent manner. It also helps in addressing important
information quickly. There should not be any wrong misinterpretation of the message and
should be decoded effectively. This helps in clearly stating goals to employees which
helps in increased performance and coordination among individuals and group of the
ETI.
 Establish trust: Building trust among individuals and groups help establish sense of
commitment towards work and increases credibility and reliability of employees at
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workplace. This increase motivation of employees and commitment towards the
organization.
 Clarify decision making authority: Individuals and group in the organization should be
clearly guided with the task and roles which they have to perform (Gomes, Barnes and
Mahmood, 2016). This helps in clarifying their roles which helps in strong hierarchical
and committee structure. This reduces overlapping of work which eventually increases
performance of individual and group.
Long-term strategy
ETI should focus on strengthening internal design of organization and should focus on
building strong ethical organizational culture which increases employee motivation which leads
to higher productivity and efficiency. There should be formalized organizational structure where
employees perform their roles effectively.
ETI should adapt to new technological changes like robust and advanced information
technology which increases operational efficiency and productivity (Volery and Mazzarol,
2015). Proper training should be given to employees for effective use of technology at institute.
CONCLUSION
From the above study it has been summarized that ETI aimed at expanding the business
which focuses on restructuring organization for increased productivity and profitability.
Various recommendations to challenges like miscommunication, unstructured hierarchical
structure, time consuming process, chaos were taken effectively by improvising committee and
setting various rules, procedure and standard for attaining organizational efficiency.
It also concludes that ETI is affected by various external factors like political, legal,
technological and competition. Organization aimed at effective decision making and increase
quality by developing various strategies and theories.
Furthermore, it states that implementation of various organizational culture lowers
productivity. ETI aims to maintain efficiency of organization by implementing ethical and value
based theory and clan theory for increased performance.
Lastly, it states various tactics and recommendation for attaining long term objective of
organization.
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REFERENCES
Books and Journals:
Argenti, J., 2018. A Management System for the Seventies. Routledge.
Barry, W.S., 2017. Airline Management: Business Management in Transport 3. Routledge.
Chandler, J., 2017. Questioning the new public management. Routledge.
Corfield, A. and Paton, R., 2016. Investigating knowledge management: can KM really change
organisational culture?. Journal of Knowledge Management, 20(1), pp.88-103.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Gomes, E., Barnes, B.R. and Mahmood, T., 2016. A 22 year review of strategic alliance research
in the leading management journals. International business review, 25(1), pp.15-27.
Pearson, G., 2016. The rise and fall of management: A brief history of practice, theory and
context. Routledge.
Samson, D., Donnet, T. and Daft, R., 2018. Fundamentals of Management [6th Asia-Pacific
Edition]. Cengage.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate environmental
management: Striving for sustainability. Routledge.
Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
field: A bibliometric investigation of articles published in the International Small Business
Journal. International Small Business Journal, 33(4), pp.374-396.
Young, C. and Ghoshal, S., 2016. Organization theory and the multinational corporation.
Springer.
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