Organizational Change: Restructuring Stephen W. Pore BUS 610- Organizational Behavior Professor L.

Smith April 25, 2012

Introduction: In every business venture, there are changes that are necessary for production and competitive developing within the business environments. A common approach designed for enhancing the growth with any business or organizations development is restructuring. This paper will explain some of the impacts restructuring can have on an organization employees performance, management effectiveness,

Body of Paper:
A necessitate for growth in any organization to stay a practical entity must occur. Organizational change is inevitable. Just like anything in existence, business and cultures change which require stable consideration and preparation. In order to be successful in any market, an organization has to be able change itself to the needs for the market.

Organizational Restructuring has been the subject of many

organizations for many years. Organizational structures are formal systems of relationships that exist within a business. Organizational structures allow management to supervise and manage the business process while facilitating working relationships among employees from top to bottom. Different types of organizational structures include functional structure, divisional structure, environment structure, hierarchical or tall structure, and horizontal or flat structure. Concepts:

Theoretical inputs for research concerning the embedding/adaptability-approach ifib applies mainly come from the contingency approach in organizational theory. According to this model, the formal structure of an organization defines the roles of its members in a specific way and thereby directs their behavior to a certain degree. The performance of the organization depends on the degree to which these role definitions enable members to cope with the requirements resulting from the context of the organization. For example if there is strong competition and a high degree of technological change, decisions about new products and marketing strategies have to be changed frequently and be taken close to the market Different researchers focused on different contextual factors and investigated their influence in empirical studies. However, the basic idea of the situational contingency of a particular object on its context as well as the idea that the performance of an institution depends on the fit between its properties and its relevant context is still valid and of great heuristic value as it suggests the critical examination of too early generalizations and asks for situational differentiation. OPEN-SYSTEMS THEORY Traditional theories regarded organizations as closed systemsautonomous and isolated from the outside world. In the 1960s, these mechanistic organization theories, such as scientific management, were rejeced in favor of more holistic and humanistic ideologies. Recognizing that traditional theory had failed to take into account many environmental influences that affected the efficiency of organizations, most theorists and researchers embraced an open-systems view of organizations. The term "open systems" reflected the newfound belief that all organizations are unique and should therefore be structured to accommodate unique problems and opportunities. For example,

research during the 1960s showed that traditional bureaucratic organizations generally failed to succeed in environments where technologies or markets were rapidly changing. They also failed to realize the importance of regional cultural influences in motivating workers. Environmental influences that affect open systems can be described as either specific or general. The specific environment is a network of suppliers, distributors, government agencies, and competitors. An organization is simply one element of that network. To succeed, or profit, the organization must interact with these influences. They use suppliers, for example, when they purchase materials from other producers, hire workers from the labor force, or secure credit from banks or other companies.

Conclusion: Organization structure is at the heart of all businesses. It applies to those involved in the manufacturing of a product or providing a service. It can be concluded that organizational restructuring is a value tool for an organization to use in an attempt to maintain their goals and objectives. The choice of which strategy to use will depend on which area the company wants to improve profitability, performance, or operation. As has been illustrated restructuring is an ongoing process. It is a very complicated subject and this paper has only brushed the tip of the iceberg. The results of how well those restructuring efforts were can take years to determine depending on which performance measure is used.

References: Burns, T., & Stalker, G. M., (1961), The Management of Innovation, London Robbins, S.P., 1993.Organizational Theory: Structure, Design, and Applications, 3rd Ed. Prentice-Hall, Inc., New Jersey