Teaching Period 1, ORG30003: Sustainable Organizational Design Essay

This essay focuses on sustainable organizational design within the modern business environment, aiming to demonstrate an understanding of key aspects of organizational design (OD) and how organizations can adapt to shifting stakeholder agendas. It emphasizes that effective organizational design cannot rely on simplistic principles applicable to all situations, but rather requires diverse approaches based on the specific operating environment. The essay discusses key features of organizational design, contrasting traditional and contemporary organizational structures, and highlighting the significance of contingency theory in adapting to changing conditions. It also explores the role of stakeholders, including employees, customers, and partners, and how their interests and influence impact organizational decisions and outcomes, covering financial and operational aspects. The essay concludes by summarizing the importance of stakeholder considerations and adapting organizational design for long-term sustainability.

Running Head: OD 0
Sustainable Organizational Design
Essay
(Student Details: )
4/9/2020

OD 1
Contents
Sustainable Organisational Design............................................................................................2
Introduction................................................................................................................................2
Sustainable Organization Design...............................................................................................2
Conclusion..................................................................................................................................5
References..................................................................................................................................6

OD 2
Introduction
The essay is mainly focused on sustainable organizational design in the context of the modern
business environment. The major aim of the essay is to demonstrate an understanding of key
aspects of organizational design (OD). In addition, the essay will talk about how
organizations can adjust key aspects of organizational design in response to shifting
stakeholder agendas. In general, organization design cannot be only based on simple
principles which can be applied in every kind of situation (McShane & Glinow, 2017). There
are some key differences and changes in an organization’s operating environment which
typically require diverse approaches to organization design for making it sustainable in the
long-term. Thus, based on the key principles and aspects of OD, the essay is going to talk
about the distinctive features of contemporary organizational environments (Mossberg,
2009).
Sustainable Organization Design
Before discussing the framework of dimensions of organization design, key aspects of
organization design are being discussed. In this context, there are some key features of an
organization, such as structure, process, culture, relationships, responsibility, authority,
performance, team-behaviours, employee morale, leadership, and others (Davies, 2016). On
the other hand, a typical organization is different from contemporary organizational
environments. In addition to that, the key difference between traditional and contemporary
organization is that unlike a conventional organization, contemporary organizations reduce
management layers and thereby share information, personnel as well as skills across
departments. It is worth knowing that contemporary organizational always tries to make
companies simpler on their feet as compared to the old-school hierarchy (Daft et al., 2017).
For organizations to develop in long-term fulfilment, they have to create and maintain healthy
environments within the workplace (Mills et al., 2010). In addition to that, companies keep in
mind that it takes a collaborative effort to compete in their marketplace section and produce
non-stop profits. On the other hand, recognizing as well as understanding the characteristics
of healthful businesses let you hit upon problems in your business enterprise if it is far
unprofitable and take corrective steps to function a successful commercial enterprise
(McShane & Glinow, 2017).

OD 3
The following discussion is based on contingency and the key implications of contingency
theories for the managers of contemporary organizations (Daft et al., 2017). By definition, in
management literature, ‘Organization’ is a process of management and an outcome of a
process which is also known as a system of consciously coordinated activities of more than
two persons (Carroll et al., 2018). Now, the new contingency approach is an important
process which has been added to the paradigm of the contemporary theory of management
(Mossberg, 2009). While defining the contingency approach, it can be said that it is the most
sophisticated approach with which the increased complexity of modern organizations can be
understood (Ortbal & Mehta, 2016). The contingency approach majorly emphasizes the
multivariate nature of modern organizations. The approach typically attempts to understand
how organizations now operate in the presence of varying conditions. Apart from this, the
contingency approach is directed to work towards proposing efficient organizational designs
as well as managerial actions in the most appropriate manner for specific situations (Davies,
2016).
There are some major implications of contingency theories for modern managers. For
instance, the contingency approach provides control on the internal functioning of
organizations which must be consistent with the help of new demands (Widya Yudha, 2019).
In this way, by using the contingency approach, an organization can work towards
effectiveness while focusing on the organizational technology, tasks and external
environment (MSG, 2020). It has been found that this approach integrates the many other
approaches to effective management developed earlier. The contingency approach is known
as a situational method that described that there is no best way to manage and solve any of
the management problems. As per this new concept, the principles and practice of
contemporary management must be contingent in any situation on the existing circumstance
or the situation (Vecchiato, 2015). The contingency theory has so many positive implications
in modern workplaces. Some key implications include an effective solution in specific
complex situations; enable the macro view of the organization and increases managerial
discretion as well (Osland et al., 2015).
Now, coming to the stakeholders of an organization, stakeholders of an organization are those
persons who can considerably affect as well as be affected by an organization's actions
(Osland et al., 2015). In addition to that, organizational objectives and policies also get
affected by stakeholders (Lăzăroiu, 2015). The main examples of main stakeholders of an
organization include directors, creditors, employees, government, owners including

OD 4
shareholders, unions, suppliers, as well as the community from where the company draws
their resources (Keillor, 2013). In this context, as stakeholders own stake in an organization
hence they also impact managerial decision-making of the company (Keillor, 2013). At the
same time, managerial decision-making affects the stakeholders equally. It is because
stakeholders get success with organizational success. When an organization gets profit then
the stakeholder gets the share in the profit and dividend too (Hamilton & Webster, 2018). On
the contrary, if an organization takes the wrong managerial decision then it will also impact
the profit, growth, and development of that firm. Thus, stakeholders always get impacted by
managerial decision-making of contemporary organizations (Daft et al., 2017).
In order to see the impact of stakeholders, first, we need to know some key facts like who
they are and how they relate to the business of a contemporary organization. In the context of
the relationship between stakeholders and organizations, employees typically expect a fair
working environment from an employer. It is worth knowing that along with the business
owners, communities, customers, employees, business partners, and suppliers are the key
stakeholders in an organization (Hamilton & Webster, 2018). It has been observed that
customers always expect an organization to operate the business fairly and honestly while
offering a value-oriented solution. Apart from this, modern communities expect organizations
to get involved and then to give back (Osland et al., 2015). In this way, in a modern
organization, business partners and business suppliers expect stakeholders to manage
business relationships with high responsibility and integrity (Vecchiato, 2015).
It has been found that stakeholders can influence organizational outcomes and decisions
considerably (Widya Yudha, 2019). In this context, stakeholders always have an interest in
the business. Conventionally, owners or shareholders have been the prime stakeholder of any
business. The major ways in which stakeholders can impact organizational decisions and
outcomes are as follows:
Operations Impact: the stakeholder group expects to be valued as a key asset. Stakeholders
impact the organizational outcomes by influencing the operations of an organization.
Employees as key stakeholders expect to be capable to work in a non-discriminatory work
environment so that company can grow sustainably (Davies, 2016). Thus, when a company
gets a failure to provide an equal opportunity workplace, then it can further lead to lawsuits
as well as low employee morale which ultimately affects overall organizational growth
(Carroll et al., 2018).

OD 5
Financial Impact: when the organizations are busy in business to make money, they usually
forget to maintain relationships with their stakeholders (Camisón & Villar-López, 2014). The
financial interests of key stakeholders include owners, partners or shareholders. In this way,
greater involvement of stakeholders must be entertained by the companies. By controlling the
financial impact of stakeholders on business, companies can take stakeholder interests into
account while understanding the negative publicity which usually comes from wrong or
unethical decision-making into digital era (Adams et al., 2016).
Conclusion
In whole, this essay has successfully talked about organizational design and features in
relation to the contemporary organizational environments. In addition to that, the key
dimensions of organization design have been researched, discussed, explored and analysed
with the help of this discussion. While discussing the distinctive features of an organization,
the paper has defined both the traditional and contemporary organizations. On the other hand,
the new idea of contingency theory has been introduced in the essay. It has been found that
the contingency approach is the situational method which is used to solve, handle and
manage any kind of management problem in this information age. In addition to that, the key
implications of contingency theories have been discussed for modern managers in
organizations. The essay has identified and demonstrated the role of stakeholders in an
organization while explaining how stakeholders influence organizational decisions as well as
long-term outcomes.

OD 6
References
Adams, R., Jeanrenaud, S., Bessant, J. & Denyer, D., 2016. Sustainability‐oriented
innovation: A systematic review.. International Journal of Management Reviews, 18(2),
pp.180-205.
Camisón, C. & Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business research,
67(1), pp.2891-902.
Carroll, A.B., Brown, J. & Buchholtz, A.K., 2018. Business & Society: Ethics, Sustainability
& Stakeholder Management. 10th ed. Australia: Cengage Learning.
Daft, R., Murphy, J. & Willmott, H., 2017. Organization Theory & Design: An International
Perspective. 3rd ed. Hampshire: Cengage Learning.
Davies, , 2016. The International Business Environment: A Handbook for Managers and
Executives. 1st ed. london: CRC press.
Hamilton, L. & Webster, , 2018. The International Business Environment. 4th ed. london:
oxford university press.
Keillor, B., 2013. Understanding the Global Market: Navigating the International Business
Environment. 1st ed. england: praeger.
Lăzăroiu, G., 2015. Work motivation and organizational behavior.. Contemporary Readings
in Law and Social Justice, 7(2), pp.66-75.
McShane, S. & Glinow, M., 2017. Organizational behavior. Delhi: McGraw-Hill Education.
Mills, J., Helm Mills, C. & Bratton, , 2010. Organizational Behaviour in a Global Context.
canada: broadview press.
Mossberg, L., 2009. Stakeholder Influences on the Ownership and Management of Festival
Brands. scandinavian journal of hospitality and tourism, 6, pp.308-26.
MSG, 2020. Why Companies Engage in International Business. [Online] Available at:
https://www.managementstudyguide.com/need-for-international-business.htm.

OD 7
Ortbal, F. & Mehta, 2016. Stakeholder Journey Mapping: An Educational Tool for Social
Entrepreneurs. Procedia engineering, 159, pp.249-58.
Osland, J., Devine, K. & Turner, M., 2015. Organizational behavior.. Wiley Encyclopedia of
Management, pp.1-5.
Vecchiato, R., 2015. Strategic planning and organizational flexibility in turbulent
environments. Foresight, 17(3), pp.257-73.
Widya Yudha, S.a.T.B.., 2019. Stakeholder mapping and analysis of the renewable energy
industry in Indonesia. Energies, 12(4), p.602.