Organization Y Restructuring Proposal

Organization Y Restructuring Proposal

Introduction

As an organization’s climate changes, the organization is faced by the escalating need to restructure its operations to accommodate the climatic changes. An organization structure is a framework under which an organization operates towards the attainment of its objectives (Danish et al. 2016, 249). The structure is affected by changes in the climatic changes that occur in the organization from time to time. Organizational culture is the process through which the culture of an organization is quantified. The organization culture has a significant impact on employees’ motivation and satisfaction in their job. Thus, it influences the overall performance of the organization. Therefore, for any organization to succeed in the business world, its structure has to accommodate its climate needs which keep changing from time to time. Thus, restructuring is a continuous exercise in any organization.

The Current State of Organization Y Climate

The CEO of Y organization realized that for the organization to become more innovate, there is a need for it to evolve. Although the mission, vision and the organization’s values have remained the same, there has been a notable decline in employee motivation. Thus, a need for the organization’s structure is necessary. Employee demotivation can be as a result of many factors such as constantly changing goals, distractions and difficulties at home, and a lack of confidence in the organization, among others (Mathur & Nair, 2016, 322). Answering to the question of whether they are satisfied with their job, the percentage of those who answered yes before restructuring fell from 79% before restructuring to 79% after restructuring. That was a clear indication that there were issues with employee job satisfaction in the organization, which could have been one of the contributing factors for demotivation.  To rebuild and retain employee motivation, there is a need to identify the cause of demotivation and restructure the organization to accommodate the needs of the employees. However, the restructuring should fall within the organization’s mission, vision, and values. Organization Y’s mission is to serve clients globally, with innovative products and state of the art customer service. The vision is to become the leading producer of innovative products design globally. As part of its value system, it supports teams to collaborate to be innovative, and relationships with stakeholders are built on trust and honesty. Also, investments are made on team members, and learning is continuously promoted. Communication is done openly, and a risk-taking attitude is encouraged.e.

Impact of the Organization’s Structure on Organizational Climate

Organization climate is one of the driving forces towards an organization achieving its objective (Bronkhurst et al. 2015, 258). An organization needs to be structured in a manner that promotes the organization’s climate. When employees feel supported by the structure, the organizational climate is influenced, and employees become more comfortable working in the organization, thus, an increase in productivity. Organization Y is operated under a functional organization structure. An organization that runs functionally groups its workers according to their acquired skills and expertise (Mathur & Nair, 2016, 258). It operates on a vertical structure where each departments’ roles are laid out from top management to the junior staff. A functional structure may be advantageous to the organization in that it supports specialization where each department concentrates on their areas of expertise. Such a structure supports the organization’s mission and vision in that the products produced are of high quality. However, it may fail to support part of Organization Y’s values which aims to support collaboration of teams towards innovation. It may also fail to support employee growth because when employees interact within departments, learning is promoted.

Strategies for a Healthy Organization Climate during Restructuring

Organizational climate is an essential resource for any organization as it helps in improving the mental state of employees which have a significant impact on employees’ motivation levels (Bronkhorst et al. 2015, 261). It also facilitates their participation in decision-making and their level of innovation and creativity. In the restructuring process, Organization Y will have to adopt some measures that will promote a climate favourable for the process to be successful. There will be a need to assess the current climate of the organization as that will help in determining if the demotivation of employees is caused by factors in the climate. If, so the restructuring process should be carried out in a manner that allows modifications to be made towards improving the climatic conditions. There would also be a need to create awareness of the company’s mission, vision, and values as it will ensure that the restructuring will fall under the three components of the organization. It will be advisable for the management to identify various factors that motivate employees. Identifying such factors will help in enhancing them during restructuring. Training programs should be put in place to educate employees on the importance of tasks being delegated; thus, they will be more willing to accept changes in the structure. They should also be educated on the importance of teams’ cooperation to ensure that they will be more willing to cooperate with their colleagues in teamwork.

Justification of the Strategy

The aim of restructuring the organization is to maximize on employees motivation, which would impact on the overall performance of the organization while maintaining the mission, vision, and values of the organization. When embarking on the restructuring processes, all the above-mentioned measures if put into action will ensure a successful restructuring. If a comprehensive assessment of the current climate of the organization if carried out, it will help to identify areas that may need improvements (Danish et al. 2015, 252). Therefore, it will be easier to make amendments in such areas and ensure that the new structure will promote the organization’s mission, vision, and values. The mere existence of a mission, vision, and values does not necessarily mean that every member of the organization is aware of its existence (Mathur & Nair, 2016, 320). Creating awareness will ensure that every member is aware of what is required of them. Thus, they will channel efforts towards the fulfilment of the mission, vision, and values. When employees are educated on the importance of their tasks and why they are delegated to them, they will be more motivated and find satisfaction. It creates a sense of task importance. Creating awareness of the importance of teamwork will enable employees to cooperate with their colleagues more readily. When restructuring, it is essential to identify what factors motivate employees. The move will help in the organization to incorporate such motivators in its operations which will be for the good of its mission and vision, which are directed towards the production of innovative products.

Additional Resources for a Healthy Organizational Climate.

The role of organizational climate cannot be under-estimated as it helps an organization to maximize productivity. When employees work in a positive climate, their morale levels go up; thus, they become extra productive. To achieve a positive work climate, the physical environment in which the employees work in should be conducive in a way that arouses their creativity. Materials needed for day to day tasks should be available. The organization should ensure that its leaders are qualified for their respective positions. Such leaders should be able to awaken creativity in employees. Functional systems should be facilitated that support a healthy flow of communication from the top management to the junior staff. When lines of communication are clear, everyone knows who to report to which minimizes time wastage, hence increased productivity (Bronkhurst et al. 2015, 259). The key skills that will be needed in supporting the organization mission, vision and values during restructuring are communication which should be clearly defined. Defining communication lines enables everyone to be aware of where to report to and take directives. It eliminates conflicts within and between departments (Bronkhurst et al. 2015, 263). An environment that reflects the organization’s mission helps members to focus on the task.  When the purpose of the restructuring is clearly defined, it facilitates for easy implementation that is readily acceptable by all. Stipulating input mechanisms ensures that laid out plans are followed promptly. The human resources are the resource around which an organization operates. Investing substantially on human resource at all levels can have a significant impact on the organization as a whole. A motivated workforce results in increased productivity, thus organizational productivity. The financial resources play a significant role in organizational growth, and for a restructuring undertaking to be successful, financial input cannot be avoided (Danish et al. 2015, 306). Finance is a great motivator for employees, and the restructuring process my involve salaries and wages increment to motivate them. Also changing and improving the physical work environment will require a considerable amount of financial input as sometimes there will be a need to change a few that will require money to implement.  Therefore financial consideration will be a crucial resource towards achieving the goal.

References

Mathur, P. & Nair, M. (2016, October). Organizational structure a key to driver to competitive advantage. International journal of management. Vol. 3 pp 248-356.

Danish, R., Draz, U. & Ali, H. (2015). Impact of organizational climate on job satisfaction and organizational commitment in education sector Pakistan. American journal of mobile systems. Vol. 1, pp 102-109

Bronkhorst, B., Tummers, L. & Steijn, B. (2015). Organizational climate and employee mental health outcomes: A systematic review of studies in health care organizations. Health care journal Vol. 40 pp 254-271 https://doi.10.1097/HMR.0000000000000026