Organizational culture – Page 2

Culture in Change Management

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Culture in Change Management

Introduction

The only constant reality in life is change. Change is not only observable on a personal level but also an organizational front. Nonetheless, managing change is a challenging task that it takes effort, energy, training, and time (Hickman & Silva, 2018). Change is also characterized by uncertainty and fear, and therefore most people and organizations prefer to maintain the status quo.

With the Internet Age introduced by the 21^st century, maintain the status quo is harmful to business as it puts companies at the risk of losing their competitive advantage as witnessed by various companies such as Levi Strauss & Co., which is a textile company in the United States. Given that change destroys the familiar corporate culture and status quo, managers should be very careful when implementing change because people are inherently resistant to change. Understanding and applying the best change theory helps a company to implement change efficiently.

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Unfortunately, managers in most organizations rarely pay attention to the impacts of culture on organizational change, even when confronting major problems. Often, managers disregard the power of culture in maintaining the status quo as they regard culture as too mushy and soft to address (Kezar, 2011). Other managers think that a company’s culture adjusts itself once the new strategy is in place or feel that the costs for changing the company’s culture are considerably high as well as difficult to achieve.

Others yet, believe that they can avoid addressing their company’s culture until the company has implemented the change, which may include new policies and procedures. What such managers fail to understand is that when change is introduced in an organization, stakeholders, including employees, shareholders, suppliers, and investors, expect an intrusion or a disruption (Kezar, 2011). As such, the culture that these stakeholders are used to fights hard to defeat the change and maintain the status quo. Consequently, significant changes mean more intrusion and more disruption, and therefore, the culture works very hard to defeat the implemented changes.

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Purpose of the Study

As a result of the tremendous change that has come with the Internet Age, the business environment is constantly changing, which makes it important for managers to apply the right systematic strategies in limiting stakeholder resistance towards a positive corporate change process. The main purpose of this research paper is to investigate the significance of an organization’s norms, values, as well as principles in change management. This paper with pay special attention to one of the textile companies in the United States, Levi Strauss.

Significance of the Study

Levi Strauss & Co was among the leading textile companies in the United States. However, today the company experiences significant challenges in maintaining a competitive advantage over other companies such as L Brands, Inc., Abercrombie & Fitch, Co, Coach, Inc., American Eagle Outfitters, Inc., and Urban Outfitters companies among others. This paper is important because it provides useful information on how textile companies such as Levi Strauss & Co. can revolutionize the company through change management strategies while paying special attention to its culture.

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Research Questions

Some of the questions that this paper seeks to answer are:

What value does culture change create for the company and the customers?
Why do people resist change?
What role does culture play in change management, and how can a company limit resistance?
How has globalization created a need for change in the textile industry?
What are the advantages and risks of not making the necessary change?
What theories support the role of culture in change management?

Methodology

This paper investigates the role that corporate culture plays in change management. The methodology that is applied in this research study includes a literature review, interview, and descriptive studies. The materials used in this research paper provide detailed information about the importance of considering culture in change management. The literature review offers supporting evidence that links cultural consideration to successful change management within an organization. The descriptive studies offer information about the best practices during organizational change supported by theories.

The criteria that are used for the inclusion of the articles for both literature review and descriptive studies pay attention to the nature of articles, timeframe, keywords, and search area. The timeframe applied for the secondary resources is within the past 30 years. The nature of the resources used includes business news articles, peer-reviewed articles, and journals. The keywords used include organizational change, corporate culture, change resistance, strategic change management, and culture change.

The search areas include business websites such as the Society for Human Resource Management (SHRM)and the United States Department of Labor and Organization for Economic Co-operation and Development (OECD). The inclusion criterion helps in setting research boundaries for the literature review to ensure that the research paper is focused and the discussion is valid.

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Background information on Levi Strauss & Co.

Levi Strauss & Co. is a privately owned textile firm that was established by Levi Strauss about 164 years in 1853. For many decades, Levi Strauss & Co. was able to effectively compete as a clothing company known globally for Levi’s brand of denim jeans. This company was the first textile corporation to make the first blue jean across the globe, and since 1853, the Levi Strauss & Co. has heavily relied on innovation to come up with new products.

Throughout the 1960s, this company benefited from various U.S movements such as counter-culture groups and campus rebellion groups, which wore jeans as their uniform. During this period, sales doubled, and in three years, the company revenue almost hit $200 million. By 1979, the Levi Strauss & Co. had become the largest clothing industry across the world and had licensed its brand to be used in other products such as socks as well as shoes.

By this time sales had hit $ 2million. Levi Strauss & Co. had ventured in about sixty nations. During the prosperous years, Levi Strauss & Co. had fifty-three production facilities and thirty-two customer service centers in forty-nine nations. Some of these countries included Japan, Europe, South Africa, Argentina, India, Australia, New Zealand, and the Philippines.

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Nonetheless, from the beginning of 1980, Levi Strauss & Co. started to experience market difficulties, and although the demand for denim jeans stabilized, its profits flattened. Thus, to enhance distribution, Levi Strauss & Co. reached agreements with marketing companies such as Sears and J.C Penney, but the profits still fell by about 25% (Au, & Ho, 2006). In 1982, the company was forced to shut down nine production plants, which led to layoffs of 2,000 employees globally.

In 1885 Levi Strauss & Co. restructured the company and was taken private in a leveraged buyout for $1.45 billion. The company afterward introduced a successful upscale men’s pants line known as Dockers, which saw that sales increase to $4 billion. Since then, the company invested in adverts, campaigns, and stand-alone jeans boutiques to maintain sales. Despite these endeavors, the company still faces stiff competition from other leading companies across the United States.

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Interview

In an effort to provide the best analysis for the importance of culture in change management, a research interview was conducted with Levi Strauss & Co. CEO Mr. Chip Bergh. Chip Bergh has been the chief executive officer of Levi Strauss & Co. since 2011 and is also a member of the company’s board of directors. As such, the Chip Bergh is well acquitted with the company’s history, market trends in the textile industry, the corporate culture that guides Levi Strauss & Co., challenges faced by the company, and what needs to be done to ensure market competition.

Interviewer: As a textile company, who you say that Levi Strauss & Co. has a competitive advantage in the market today?

Interviewee: No.

Interviewer: Why is that?

Interviewee: The textile industry has undergone a great deal of change, specifically due to the high levels of competition and global sourcing. More so, the textile and clothing industry is now characterized by significant changes such as high volatility, short product lifecycle, high chances of impulse buying, and low predictability. Additionally, retailers across the world source for their textile supplies from companies that can meet their specific needs in time. This has been a huge setback for the company because it has failed to adopt the necessary strategies for its supply chain.

Interviewer: What do you think is the main hindrance in implementing effective change?

Interviewee: Our corporate culture. Levi Strauss & Co. is largely a bureaucratic corporation, which makes the implementation of change very difficult. Our employees, shareholders, and some managers resist change.

Interviewee: What do you think should be done?

Interviewee: The Company needs to change its supply chain and adopt one that enables it to optimize efficiency, minimize acquisition and delivery time, cut on operations costs, and improve product distribution globally.

Literature Review

According to a report given by OECD, many companies are driven to change because of several reasons today (Rothaermel, 2016). These factors include technology, globalization, market conditions, organizational growth, and poor performance. Whichever the cause, stakeholders in a company will always resist the change, which puts the company at risk because failure to adopt the necessary changes may influence the company’s ability to secure a competitive advantage in the market.

A survey conducted by the SHRM (2007), change resistance is one of the biggest reasons why most corporations fail to change. During change, a company may experience active resistance, passive resistance, or compliance, which is destructive to a company’s endeavors for change. Effective change management out to cultivate enthusiastic support from the stakeholders and to achieve this. The corporate managers have to understand how their corporate culture is affecting the change.

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People simply resist change because it disrupts their “way of doing things,” which can be defined as culture. Notably, culture in change management is a significant component in every firm that all corporate developers and managers in human resource departments must consider when making plans and executing any viable changes within an organization.

Organizational change management refers to a systematic and organized way through which corporations apply their tools, resources, and knowledge in an effort of facilitating change. According to Kneer (2013), change management can be defined as the strategy of systematic and planned chance that is achieved based on how the structure of the organization influences the culture of an organization and stakeholder behaviors.

The endeavor of change management implies that the change process demands proper planning and systematic management. Proper change management facilitates progressive, efficient, and effective implementation of new methods and systems within a firm. Change management also involves a company’s response to external stimuli when it cannot straightforwardly influence factors such as political, social, competitor’s strategies, legislations, technological advancements, and globalization.

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Pfister (2010) asserts that the culture of an organization refers to a shared understanding of a specific group of individuals in a specified context. The shared understanding originates from a set of principles, values, and norms that the individuals deem significant to them and, as such, align their practices towards those particular standards. According to Bhasing (2010), the principles, norms, rituals, and values of a company define its culture.

Typically, organizational culture refers to the profile of a group of individuals within an organizational context in regard to factors like standards, values, and behaviors. In the business world, culture defines the way things are done within a company and entails the fundamental patterns of assumptions that have been working for the company in the past and are considered valuable.

New stakeholders are inducted to embrace them while working with the organization. While change management purposes to take a corporation through various levels of development as stipulated by the goals put in place by a firm, several factors make a huge difference in determining the failure or success of change management tasks.

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Doppelt (2017) argues that people adopt and maintain certain cultures because of their personality, feelings of certainty, fear of failure, the impact of the change, the prevalence of the change, and the perceived loss of power in case of change. When a corporation is comprised of many stakeholders with a low self -concept, they are likely to resist the change because they feel that they may not be able to adjust to the change accordingly and be successful in the new system.

As such, they fight to keep the status quo and culture of the organization. Secondly, change brings feelings of uncertainty. Changes such as mergers make people lose jobs while the company’s revenue may take a turn to the worse. The uncertainty created results to fear and stress because people feel that they may lose control.

Corporations also fail to change because the stakeholders fear failure as they do not know how performance may be affected by a new system. People also resist change because it may impact their lives negatively and only welcome change that is favorable to them. The prevalence of change may also cause change resistance, mainly if it involves key departments. Lastly, people may fear change if it is associated with losing influence with the company.

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According to Hickman & Silva (2018), a flexible organizational culture limits resistance and helps people to adopt changes implemented in a new system easily. Company managers need to understand the relationship between culture and change management. One of the questions that corporate managers ought to ask themselves when orchestrating significant changes is how the existing culture and mindset are similar to the required set of behaviors expected to realize the change.

When the disparity is high, the company is at risk of not realizing its goals. According to Lewin’s Change Management Model proposed by Kurt Lewin in the 1950s, a company should apply three steps to achieve systematic and effective change (Ala et al., 2013). The first step is the Unfreeze stage, where the company prepares for change by purposefully changing the stakeholder’s mindset and behaviors towards a proposed change. During this step, the change managers should focus on breaking the status quo and eliminating fear and uncertainty.

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The second step is to change implementation. During this phase, the company implements a real transition. The success of this stage depends on how well the management creates the vision for change, communicates the change plan, develops a sense of urgency, builds a coalition, engages employees in decision making, and provides support prior and during the transition.

The last step, according to this theory, is refreezing. The company ensures that people embrace and implement new policies and procedures. During this stage, the management tracks the changes to ensure that the organization is stable again. The behaviors, norms, principles, and values of the company must be aligned with the new system.

Discussion

Currently, industries have adopted outcome-based strategies rather than input-based (World Economic Forum, 2015). The success of a 21st industry is measured through its outcome-based targets and its ability to connect with the significant teams across all functions. It is also measured through is the ability to find the right partners to form collaborative platforms and bridges.

With the current demand for speed, the textile company would also need to form meaningful alliances with the transport industries, including road, railway, shipping, and air transport. A collaborative ecosystem will require innovation, flexibility, and efficiency as its core strategic approach.

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These demands make it necessary for companies in the textile industry such as Levi Strauss & Co. as well as others in different sectors to employ the necessary changes to acquire a competitive advantage in the global market. Levi Strauss & Co. need to collaborate with suppliers that can supply raw materials promptly and at a low price. The company needs to access its culture and destroy the current status quo to adopt new supply chains that will be more beneficial to the company.

Conclusion

Conclusively, companies are prone to change due to poor performance, technological advancements, globalization, workforce demographics, organizational growth, and market conditions, among other factors. Nonetheless, regardless of the factor, people will always resist change as it disrupts and intrudes on their status quo. Based on Lewin’s Change management model, a company must systematically plan change around three steps, which include unfreeze, change, and refreeze.

References

Ala, R. D. (2013). Values as Predictors of Attitudes toward Changes. International Journal of Trade and Finance, 4 (5).

Amah, E. (2012). Corporate Culture and Organizational Effectiveness: A Study of the Nigerian Banking Industry. 212 – 229.

Au, K. F., & Ho, D. C. (2006). Electronic commerce and supply chain management: value-adding service for clothing manufacturers. Integrated Manufacturing Systems, 13(4), 247-255.

Bhasing, N. (2010). Change in perception of organizational culture after the merger: The Influence of Motivation, Acceptance, and Knowledge. University of Twente Press.

Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for business, government, and civil society. Routledge.

Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture, strategy, and change in the new age. Routledge.

Kezar, A. (2011). Understanding and Facilitating Organizational Change in the 21st Century: Recent Research and Conceptualizations: ASHE-ERIC Higher Education Report, Volume 28, Number 4 (Vol. 155). John Wiley & Sons.

Kneer, C. (2013). Change Management Enhance the Ability to Survive. München GRIN : Verlag GmbH.

Pfister, J. (2010). Managing Organizational Culture for Effective Internal. Berlin: Physica-.

Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.

World Economic Forum. (2015, October 9). Five characteristics of a successful 21st-century enterprise. Retrieved from www.weforum.org/agenda/2015/10/5-characteristics-of-a-successful-21st-century-enterprise/

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Making sense of organizations Research Paper

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Making sense of organizations

To what extent is our understanding of organisations and management over the last 100 years applicable to the 21st century?

MAKING SENSE OF ORGANIZATIONS THROUGH THE YEARS

The complexity of interconnections is at the heart of our knowledge economy. In a developing economic ecosystem, all individuals, teams, communities, systems, and other corporate assets are highly interrelated. Each network player in the linked economy is part of a bigger economic web that influences and is impacted by each other (Pettinger, 2017). We can no longer focus on individual actor performance in such a linked system; instead, we must focus on system results.

The performance of the integrated whole is the key. Attempts to make sense of this new environment are revealing certain fundamental principles at work in the complex adaptive systems we call organizations. (Shapiro & Varian, 1999) said that, “There is a central difference between the old and new economies: the old industrial economy was driven by economies of scale; the new information economy is driven by the economics of networks…”.

Recent study on knowledge economy productivity and effectiveness sheds light on what works in the linked workplace (Pettinger, 2017). When undertaking knowledge work, certain patterns of relationships arise around both effective people and successful teams.

An Organization is a group of people working together to create a surplus (Koontz & Weihrich, 2006). This surplus is profit in business organizations; however, it may represent fulfilment of needs in non-profit organizations such as philanthropic organizations. Management is the act of creating and maintaining an environment in which people work together in groups to achieve specific goals (Koontz & Weihrich, 2006). The basic definition of management implies that managing is concerned with productivity which implies effectiveness and efficiency.

Business success necessitates the development of a smart strategy into a well-executed plan. The process of directing a corporation and efficiently employing or controlling its assets and resources is known as organizational management. It goes beyond a corporate structure; it necessitates that executives have systems in place to resolve challenges and produce solutions that assist the company get closer to its goals (Leonard, 2018).

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Managers frequently perceive their work as task or supervisory in nature, however this is a fallacy. Management is a discipline that consists of five broad functions: planning, organizing, staffing, leading, and controlling at its most fundamental level (indeed, 2021).Planning entails deciding on acceptable goals and activities to pursue, as well as selecting what tactics to employ, what actions to take, and what resources are required to attain the objectives (indeed, 2021).

Organizing is the process of putting things together. Workers can work together to achieve organizational goals through this process of creating worker connections. Leading involves articulating a vision, energizing employees, inspiring and motivating people using vision, influence, persuasion, and effective communication skills (indeed, 2021). Staffing involves Recruiting and selecting employees for positions within the organization. Controlling is Evaluate how well the organization is achieving their goals, improving performance, taking actions to ensure events conform to plans (indeed, 2021).

The number of levels in management grows in full agreement with the growth of the organization and employees, and vice versa. The various levels of management can impact the chain of command within an organization, as well as the degree of authority and, in most cases, decision-making power that all managerial roles have (Juneja, 2015). The board of directors of an organization, as well as the chief executive or managing director, make up the top level of management.

Because it monitors a company’s goals, regulations, and processes, it is the ultimate source of power and authority. The strategic planning and execution of the entire business performance is their top focus (Juneja, 2015). This intermediate management level is made up of branch and departmental managers.

These individuals are directly responsible to top management for the smooth operation of their departments, allowing them to devote more time to organizational and strategic duties. Lower-level managers are primarily concerned with the execution and coordination of day-to-day workflow in order to guarantee project completion and delivery of deliverables (Juneja, 2015).

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Traditional organizational structure is a strategy for organizing a business or other entity in what is known as a hierarchy or a top-down structure (Henry, 2016). With this approach, the processes of task allocation and management focus on a vertical structure that strictly defines a chain of command. A bureaucracy of this type allows relatively little open communication between different levels of employees, with those who are assigned to work within departments normally being assigned jobs and told what to do, without much of an ability to have input into policies and procedures (Henry, 2016).

Hierarchical structures of this type have been common in a number of different organizations, ranging from companies and non-profit organizations to religious organizations (Henry, 2016). While a traditional organizational structure can often be effective when highly competent individuals are placed in positions of authority, there are also potential pitfalls with this model that include a lack of checks and balances.

The creativity of the organization may also be somewhat limited in this type of business structure, since the ideas all come from a relatively small number of individuals who are actually involved in the overall operation (Henry, 2016).

There are four basic models or types of organizational structure. One is known as Structure of a Functional Organization. People who do comparable jobs are grouped together by speciality in a functional organization structure(Alton, n.d.). As a result, all accountants are assigned to the finance department, followed by marketing, operations, senior management, and human resources. Because the group members can readily communicate, this arrangement has the benefit of allowing for speedy decision-making.

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They can also learn from one other because their skill sets and interests are comparable (Alton, n.d.). Another type is the divisional structure on Items, in which your organization divides employees into teams based on the products or projects that best satisfy the demands of a certain client (indeed, 2021). A bakery with a catering operation, for example, may divide its staff into departments based on their primary customers, such as a wedding department and a wholesale-retail department (indeed, 2021).

The matrix structure, on the other hand, is more complicated since it incorporates components from both the functional and divisional models. It organizes employees into functional specialized departments, which are subsequently divided into divisional projects and products (Sullivan, 2019). Team members are given more autonomy and are expected to take on more responsibility for their work in a matrix structure. This boosts team productivity, encourages more invention and creativity, and helps managers to tackle decision-making issues collaboratively through group engagement (Sullivan, 2019).

This organizational structure takes a great deal of preparation and effort, thus it’s best suited to large corporations with the resources to spend maintaining a complicated business framework (Sullivan, 2019). Lastly, most firms’ traditional top-down management method is disrupted by a flat organizational structure (Sullivan, 2019). There is no daily “boss” since management is dispersed.

Each employee is their own boss, which reduces bureaucracy and red tape while increasing direct contact (Sullivan, 2019). This structure eliminates needless layers and distributes authority across many positions. When everyone doesn’t agree, this contributes to improved decision-making, but it may also be confusing and inconvenient. In other words, it has advantages and disadvantages similar to other structures (Sullivan, 2019).

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Although traditional structures excel in industries where procedural uniformity equates to quality, they tend to have some drawbacks in meeting the varied demands of 21st-century businesses. One of the main problems face by the hierarchical method is that it has a complicated chain of command which can slow down decision-making (Anon., n.d.). this type of structure can reduce interdepartmental cooperation and communication. Departments can become indifferent to the concerns of other areas and develop tunnel vision (Anon., n.d.). When acute, departments may put their own agendas ahead of company goals (Anon., n.d.).

Senior persons have a significant role in decision-making under the existing hierarchical arrangement. They can either foster discussion or strive to reach an agreement among multiple viewpoints, then they might be lauded as heroes for successfully negotiating a compromise. When parties can’t agree, they’re tasked with making the ultimate decision, and they’re lauded as heroes for coming to the rescue and putting a stop to the squabble (Palmer, 2018). Or they don’t involve others in their decisions and just announce what is going to happen and are hailed as heroes for taking a strong line (Palmer, 2018).

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Another disadvantage of the hierarchical organizational method is that there is less flexibility to adapt and react to environmental market. As companies develop, they tend to add additional procedures and systems to help them manage their different pieces. With additional regulation and control added to the maze of bureaucracy, this collection of rules and processes can get increasingly complicated over time. This eventually grows into its own business, requiring an army to oversee and maintain the rules and procedures (Hayward, 2019).

Traditional management clashes with creative expression in particular. Employees at advertising firms and art and design, for example, occupations are more productive when the framework is flexible and informal (Kokemuller, 2017). Traditional management is centered on a controlled work environment in which workers are held to high professional and performance standards. As a result, traditional management rarely works in these situations (Kokemuller, 2017).

Employee empowerment, or the practice of entrusting important decision-making to firm employees, has grown prevalent in early twenty-first-century workplaces (Kokemuller, 2017). Employees who are actively participating in decision-making have a better feeling of ownership at work, according to companies. Customers also benefit from more quick problem-solving assistance (Kokemuller, 2017). Tall bureaucratic structures limited employee participation in organizational decision-making, and they were also rigid and time-consuming since decisions had to trickle down the hierarchy from the top before reaching the individuals who needed to hear the message (Kubheka, et al., 2013).

Flattening hierarchies is an attempt to empower lower-level employees by giving them decision-making authority. While team-based approaches to operating have been identified in some organizations, most employees still delegate decision-making authority to their former middle managers, whom they regard as more experienced and knowledgeable (Kubheka, et al., 2013).

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Lastly, this organization method is resistant to creativity. Business divisions are unable to respond quickly to competitive challenges due to the top-down decision-making structure. This is one of the reasons why smaller, more agile start-ups with fewer management layers are frequently able to surprise larger competitors and carve out a profitable market niche (Basu, n.d.).

The issue is that the chain of command functions properly when it comes to giving instructions and making judgments. It works so effectively that unless fresh ideas are communicated from the top down, they have a slim chance of being implemented. Ideas that emerge from the middle or lower levels of a hierarchy must pass through a series of managers, each having the capacity to veto but not the capacity to implement them (BURKUS, 2012).

The chance of rejection grows as a concept progresses up the levels, because those managers are removed from the area to which the concept relates and are less likely to see its genuine worth in that area (BURKUS, 2012).

Due to the emergence of factors like globalization, intense competition due to an increase in number of companies, ethics and the green movement as well as a need for increased speed and responsiveness, there has been a growing need to change the traditional organizational structure and hence the modern organizational method emerged in the 21^st century. Modern Organization means a boundaryless organization which are networking together and collaborating more than ever before (Quain, 2018).

They are well-suited for rapid innovation and therefore ideal for companies in the growing technology industry. Its main concept is to diversify its activities and connectivity as a result it can accept new challenges and can set a goal frequently. The old top-down organizational structure is replaced by teams that work on projects collaboratively in a modern organizational structure. Rather than depending on senior management to drive the work process, modern organizational design focuses on empowering individuals to make decisions and execute changes without the need for supervisor approval (Quain, 2018).

Employees are given the criteria, milestones, and productivity objectives of significant projects and must find the most effective approach to fulfill those goals under this sort of organization. This style eliminates the typical company’s vertical structure and offers employees ownership of the job they do (Quain, 2018).

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Unlike the hierarchical method, the modern organization structure is more dynamic with its business strategy. This means that it needs multiple progress and constant changes. Regardless of the fact that the hierarchical method was more stable, it was more costly. Managers jumped from job to job quickly, gaining high positions despite a lack of expertise. They not only required constant supervision, but they also struggled to understand what they needed to know (Neilson, et al., 2003).

The corporation appeared to promote its finest and brightest quickly in order to keep them. This caused extra labour at lower levels by adding superfluous layers to the system. All of these activities are really expensive. The company’s general and administrative expenditures were 20 percent more than the average of our benchmark firms due to the managers’ salary and the real cost of their operations (Neilson, et al., 2003).

Traditional organizations are slightly conservative and they try to follow traditional rules and regulation. They always flow a static business strategy and make a workflow model maintaining a traditional marketing policy and employee management system. A modern organization is doing modification, rescheduling, flexible entity management and dynamic business strategy (Neilson, et al., 2003).

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Employees in a modern business have more freedom and flexibility in exchanging their opinions. As a result, staff morale is strong in this form of firm and they is a significant increase in employee morale. Because Traditional is a job-oriented company, you are unsure about employee morale (Jahan, 2016). there is a psychological and rational perspective when it comes to employee morale.

Employee empowerment from a psychological perspective focuses on attempting to characterize the self-perceptions of an employee who feels he or she is empowered. According to proponents of psychological views, empowerment is a subjective state of mind in which an employee believes he or she has effective influence over their work (Kubheka, et al., 2013).

The relational view on empowerment, on the other hand, is concerned with the distribution of power within an organization and how it is influenced by the structure and culture of that organization (Kubheka, et al., 2013). The general theme of the rational perspective is the relocation of power from the upper level of the hierarchy to the lower level workers. Hence the modern organizational prevents people from centralizing authority or embedding power in fixed roles and allows the firm to remain flexible and adaptive (Kubheka, et al., 2013).

With the emergence of factors like globalization and technology, there has been a need for adaptation and change.The modern organization is increasingly technology-driven and devoid of boundaries. As a result, the number of employees or the office compartment are irrelevant. Traditional organizations, on the other hand, are too centralized and backward to embrace sophisticated technologies (Jahan, 2016).

With beurocracy, factors like decision-making, communication and action become slowed down and the company becomes a lumbering entity. However, with modern organisational structure, such factors are easy to adapt to and lead to both profit and growth of the company.

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Regardless of the multiple advantages of the modern organizational structure, there are still a number of negative factors that lead to companies to retain the traditional structure. For instance, A well-designed organization ensures that reporting connections, decision-making, information flows, and work procedures are all clear (Nouri, 2019). Everyone understands precisely what they are accountable for, who they report to, and what other coworkers are accountable for with a well-crafted design.

This can help a company’s operating efficiency, especially if it’s a large one (Nouri, 2019). However, there are certain disadvantages to this level of clarity. Employees in small startups without a defined framework, for example, may be expected to do a variety of unrelated jobs. Employees in highly organized companies, on the other hand, may reject or refuse to complete work that is not part of their job description (Nouri, 2019).

Moreover, if employees fail to hold each other accountable for mistakes, the lack of supervisory power can lead to disorder and inefficiency. Another downside is that, because the organization is no longer top-down or bottom-up, prospects for development or upward mobility are restricted, since the company now operates as a “flatter” structure in which all employees are treated equally (Ingram, n.d.). a typical organizational structure, however, concentrates decision-making and authority in the hands of a few individuals inside a company.

It reduces employee uncertainty about who is in control and sends a clear message about what workers are expected to do in the course of their jobs. A machine can be compared to the top-down structure (Ingram, n.d.).

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References

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