Organizational Restructuring at ETI: A Case Study Report

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ORGANISATION
THEORY
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Table of Contents
INTRODUCTION............................................................................................................................. 3
TASK............................................................................................................................................... 4
ANALYSIS OF THE FACTORS INFLUENCING THE INSTITUTE TO RESTRUCTURE ITS
ORGANISATION STRUCTURE, CHALLENGES FACED IN RESTRUCTURING THE ORGANISATION. .4
IDENTIFICATION AND ANALYSIS OF UNCERTAINTIES IN CHANGING EXTERNAL ENVIRONMENT,
RECOMMENDATIONS FOR ORGANISATIONAL RESPONSE.........................................................5
ANALYSIS OF THE IMPACT OF CHANGE IN ORGANISATIONAL CULTURE ON INSTITUTE’S
PERFORMANCE..........................................................................................................................7
TACTICS FOR ENHANCING THE COLLABORATION BETWEEN INDIVIDUALS AND GROUPS AND
LONG TERM STRATEGY TO RESOLVE THE PROBLEM..................................................................8
CONCLUSION............................................................................................................................... 11
REFERENCES.................................................................................................................................12
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INTRODUCTION
This report is based on the case study of ETI (education & Training Institute Ltd.) which is a
training institute that provides long term and short term courses in niche areas. The case is
about the restructuring of ETI's organisational structure as the company is growing and now
have 150 employees who need proper and new organisational structure for the smooth
functioning. Organisational restructuring is process that solves the problem of company’s
unsatisfactory status quo (Vos et al., 2011). There is an addition of new departments in the
organisation like Human resource department, marketing, Health and safety department,
education and training department, accounting and finance department etc. by these
departments the respective managers are also assigned, the procedure of shifting the structure
will result in short term difficulties so the analysis for the challenges in restructuring, solutions
to those problems are to be discussed in the report.
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TASK
ANALYSIS OF THE FACTORS INFLUENCING THE INSTITUTE TO RESTRUCTURE
ITS ORGANISATION STRUCTURE, CHALLENGES FACED IN RESTRUCTURING
THE ORGANISATION
Education and training institute ltd is now expanding itself and is shifting from an office too
whole new building with a huge army of employees which requires a change in the
organisational structure and control.
Figure- Organisational Restructuring
Source- Organisation restructuring, 2018
Factors that lead to restructuring are-
 Expansion – as in 2017 the organisation is expanding; now there are 150 employees in
the organisation which cannot be managed by only 2 directors. The organisation now
needed a systematic structure.
 Lack of written rules and regulations in the organisation due to which handling 150
employees are very difficult. So in the new organisational structure, there will be a set of
rules, procedures in written so that no one questions the integrity of the organisation.
By these rules, the biasness can be overcome.
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 As earlier there was only SMT team and directors who take decisions and there was no
defined hierarchy which defines responsibility and authority so the restructuring
became necessary.
 There was the free flow of management style in the organisation, no systematic style of
management was adopted which created reporting and work division problem.
 The decision making earlier was shared between the departments and there was a lot of
miscommunication between the employees about the work.
Challenges faced in the restructuring of the organisation-
The redefining of new policies and rules in the organisational structure, there was a shift from
organic design to the mechanical design of the organisational structure. This was taking so
much time as the new policies were large in number and to understand them was difficult for
both the employees and the departmental managers. The second problem was that the
efficiency of employees was decreasing daily, every manager of different departments was
involved in the meetings of decision making so the employees were not directed about their
work and hence this reduced their efficiency. The third problem was the delay in decision
making, as the managers of each department were not authorised to take the day to day
decisions due to centralised decision-making system and so the decisions can only be made by
the SMT and Board of directors. Out of which 90% of the decisions were taken by the SMT and
they have so many responsibilities which eventually delayed the process. Earlier there was no
such compulsion of record keeping but now with the new structure, the employees and the
managers are responsible for formal record keeping of all the work they have done or assigned
to.
IDENTIFICATION AND ANALYSIS OF UNCERTAINTIES IN CHANGING EXTERNAL
ENVIRONMENT, RECOMMENDATIONS FOR ORGANISATIONAL RESPONSE
The uncertainties due to change in the external environment can be identified as the institute
has changed from a simple and stable system to complex and unstable system. ETI has done a
strategic expansion with a huge intake of staff and physical asset there should be an increase in
the revenues through an increase in the number of trainees. The beginning of the uncertainties
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include the competition from biggest competitors in this field, ETI has to improve the quality of
training provided by them to sustain in the competition, many companies sink in this type of
competition but by retaining its quality ETI can drive through these challenges. The next
challenge or uncertainty is to fulfil the requirements for the national standards as the company
is now one of the biggest training institutes so it has to strictly follow the norms, rules and the
standards of regulatory board of the country. The challenge is not only to deal with
uncertainties from competitors, quality and growth but also to deal with the actual future or
current uncertainties of the environment which can severely affect the working of the
organisation, the top level management need to scan the environment to grab the future
opportunities and to minimise the threats by using its strength as a medium.
Figure- organisation culture
Source- organisation culture, 2019
Recommendations for organisational response to uncertainties -
Firstly the top level management needs to find the norms of national standards and
communicate it to every employee and manager in the organisation and SMT should see that
the proper execution is done and the employees follow these standards strictly.
Secondly, the SMT and marketing department should come up with more innovative and
creative strategies of promotion and advertisement, like advertising in platforms of LinkedIn,
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indeed etc. where the courses according to your job preferences will be recommended to you.
There are other ways of advertising in print media, social media platforms, giving the demo by
the finest trainers in various colleges or universities etc. Thirdly maintaining the quality and
sticking to the quality standards is also important for ETI to sustain in the organisation plus the
quality can be a competitive edge towards the new entrance and competitors. Quality is not
only to be maintained through delivering the quality services but the regular training of the
employees is also necessary so that the can deliver their best services that are new and
according to the current market situations. SMT and top-level management need to constantly
scan the environment to know the future possibilities and threats that can reduce the business
of the organisation, making the strategies to grab the opportunities and use the strengths to
minimise the threats from competitors and other environmental factors.
ANALYSIS OF THE IMPACT OF CHANGE IN ORGANISATIONAL CULTURE ON
INSTITUTE’S PERFORMANCE
Organisational culture is a set of policies and procedures, working beliefs, attitudes towards
other employees at the workplace, the way of working in an organisation with reference to
achieving the objective of the organisation (Bhasin, 2011). The change in organisational culture
had a very severe and negative effect that resulted in the decreasing performance of
employees. Earlier ETI was a very strong organisation in upholding its values through value-
based leadership which involve gaining high trust from employees. There was a sense of
transparency, integrity and mutual respect between the employees and the directors. The
whole organisation was under the guidance of 2 directors. These 2 directors were very
supportive, they enable staff to integrate with other employees and helped them to adapt to
the change in the external environment. But now there is a change in organisational culture and
adaptation of the bureaucratic approach, there is a reduction of involvement of employees in
the organisation, now they don't feel connected to the organisation.
It is impossible for the employees to reach to the top level directors which were not the case
earlier; this restricts them to give suggestions in solving problems or giving new ideas. By the
new system of protocol and procedure, the employees have to report to their respective
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managers and these actions reduce the creativity and innovation ability of the employees. The
managers provide a large amount of burden on the employees as the managers have pressure
from their superiors so the employees are being red taped and this is bringing down the morale
of employees and degrade their efficiency in performing the tasks and the load they have is
unbearable, this generates commitment beyond oneself which is resulting in conflicts between
the employees and managers about the workload. The organisation is leading to a political
model where the personal or departmental goals are focused not the organisational goals. As
the managers were busy in meetings the efficiency and productivity were affected so the
managers were not attending the meetings of departmental heads which lead to conflicts
between the managers hence delaying the decision-making process and overall affecting the
performance and implementation of decisions were delayed.
The managers were confused about the departmental responsibilities and so due to
miscommunications the work was not completed on a timely basis and the conflicts between
the departments were also increasing day by day. The decision making power of routine
activities was not given to the managers hence they have to ask for the same small issues to the
SMT and hence the tasks were held pending on decisions further delaying in the execution of
the tasks. All these activities were contributing to the reducing performances of the employees.
TACTICS FOR ENHANCING THE COLLABORATION BETWEEN INDIVIDUALS AND
GROUPS AND LONG TERM STRATEGY TO RESOLVE THE PROBLEM
There are various tactics to bring collaboration between the individuals and groups in the
organisation but this will take time as the whole organisation structure is changed. The first
step is to motivate managers and the employees, motivation can be done through a speech for
thanking all the employees and managers and other staffs for being there in the tough and hard
situations of the organisation, the employees represent the organisation nationally, so they
need the motivation to do better and perform their best in order to achieve the organisation
goal. Employees are loaded with lots and lots of work with the pressure to follow the new
standards and rules, so the employees need to be herd and provided extra facilities for their
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overtime in the organisation this will cheer all the employees and they will work
enthusiastically.
The next task is to delegate monthly and weekly duties of different departmental managers; the
delegation of responsibility should be in such a way that the responsibility can never be shifted
to other department and there should be no conflicts regarding the responsibilities and work
between the departments.
The organisation should cut the regular meeting to weekly or 2 meeting a week so that the
managers can focus on their own departmental productivity and solve the problems faced by
the employees, in this way the employees will not be wasting the time and the errors will be
reduced.
There should be monthly activities or events which will not be related to work these activities
will be including games that involve all the departments, this will create a sense of togetherness
between the managers and employees. By this, the conflicts will be reduced and the
departments will communicate with each other properly.
Long term strategy to solve the problems -
The managers should be given authority to make decisions regarding day to day or routine
activities because the managers now are facing the problem of seeking confirmation from the
SMT team and SMT have the responsibilities of all other departments simultaneously, they
have many decisions to make so there is always delay in decision-making process delaying the
overall goal achievement period. By giving the authority to managers they will feel motivated
and automatically the process is not delayed and workflow will be maintained smoothly. The
employees will also be relived as they also have to wait for the confirmation and hence will
increase the overall productivity.
Another long term strategy is to hold the meeting of employees and top-level management on
a monthly basis, the employees can communicate about their problems and can suggest for the
new and innovative ideas they have for the organisation, this will boost the confidence of
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employees and make the employees feel free and close to the top level management which
was earlier the case before restructuring of the organisation.
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CONCLUSION
It has been concluded from the aforementioned study that the restructuring process in any
organisation is not easy and not a task of a month it takes a year or two or maybe more to
adjust into the environmental change of the organisation. It is the work of all the members of
the organisation to come together and face the change. Slowly and timely the organisation will
adapt to the norms and procedures of the new structure and once the pace is set and the
employees get used to the protocol there is no looking back and everyone will be easily and
efficiently performing their respective tasks. The main part of the delegation of responsibility
and authority to managers will solve most of the problems faced by departmental managers
and employees. The organisation should focus on increasing its customer base through various
promotional methods to compete with the big competitors, the quality and the standard norms
should be followed strictly to compete nationally.
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REFERENCES
Bhasin, S., 2011. Measuring the Leanness of an organisation. International Journal of Lean Six
Sigma, 2(1), pp.55-74.
Vos, L., Chalmers, S.E., Dückers, M.L., Groenewegen, P.P., Wagner, C. and Van Merode, G.G.,
2011. Towards an organisation-wide process-oriented organisation of care: A literature review.
Implementation Science, 6(1), p.8.
GM, 2018. Organisation culture. (Online) Available at: https://gothamculture.com/what-is-
organizational-culture-definition/ (Accessed on 28 February 2019)
Jonra Springs, 2017.Organisational Restructuring. (Online) Available at:
https://bizfluent.com/info-10023474-organizational-restructuring.html (Accessed on 28
February 2019)
TP, 2018. Organisation Culture. (Online) Available at:
https://www.tutorialspoint.com/human_resource_management/human_resource_manageme
nt_organizational_culture.htm (Accessed on 28 February 2019)
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