Development of Organizational Architecture

Development of Organizational ArchitectureVenter and Louw (2006, pg 394) describes organisational architecture is an integrated strategic response, which draws together key dimensions of the organization (such as organizational body structure, leadership, organizational culture, policies and strategies and the to guide strategic formulation, alignment and murder. This report entrust seek to critically discuss organizational architecture as a cohesive frame crop that will leave about limiting at heart PPC.Venter and Louw (2006, pg 394) says that the ability of an organization to facilitate the effective and efficacious mechanismation of dodge is almost entirely dependent on its indispensable functioning, for it is the internal organization which is seen to comprise those elements that atomic number 18 pivotal in translating the strategy into touchable outcomes and actions. We will do this by exploring the notions of PPCs alignment and implementation with particular mention to the architecture developed by Lee et al (2004).S tearholdersThe main device driver of PPC strategy as described in the case sphither is to call down stakeholders recountingships. PPC Stakeholders are shareholders, customers suppliers, the broader community and its employees. These different employees are affected differently by PPC strategy. During the strategy formulation phase, PPC was able to establish that the main hindrance to achieving accordance was that their 4000 employees were demotivated. So PPC embarked on a strategy to motivate its employees.Cameron (2003) defines motivation as the force that drives behaviour in a particular direction. Mitchell (1982) defines motivation as those psychological processes that cause the arousal, direction and persistence of voluntary actions that are intention oriented. Both Cameron and Mitchell point out that motivation is goal oriented and Mitchell (1982) further defines this force as a psychological processes in his exposi tion of motivation. This distinction by Mitchell is important in that it pulls motivation as a process (i.e. consisting of a number of steps) and psychological. This distinction reveals that for a manager to be able to motivate he has to identify the psychological needs of his employees and consequently devise a process of meeting those needs.PPC was able to identify that motivation of employees was one of the factors that it needed to remedy in order to im record its goals. So it looked at how this can be achieved.CapabilitiesLouw and Venter (2006) describe capabilities as those different deliverables provided to the stakeholders by the organization and dependent on the nature of the organization. From the case study PPC seems to be following a low cost structure for its cementum stock and a differentiation strategy for its PPC Lime and Afripack business. These different capabilities put up implications on PPC stakeholders. For example, for shareholders, the low cost strategy has high returns through and through with(predicate) stream field of operationd, to a greater extent cost effective operations and proved by the increase in share price from R78 to R122 by the end of September 2003. So the in a higher place combination of strategies has the benefit of drawing elements from both capabilities.ProcessesProcesses can be seen as drivers of capability. Veasey (2001, pg 423) cited on Louw and Venter (2006) categorizes processes as worry, operational and support.Management ProcessesDescribes the role of PPC managers, their work methods, goals and tasks that they aim to achieve and lastly knowledge, skills and level of performance required by the product line. The Kumbuku learn seemed to be aimed at reducing the performance as the responsibleness of only the managers only if to spread it amongst all employees.Operational ProcessesThis is merely come to with the conversion of inputs into outputs. Heizer and Render (1999, pg 228) cited on Louw and Vent er says most goods are produced utilise one of three strategies, namely, process focus, repetitive process and product focus. PPC produces umteen units of cement a year with very low degree of variety, so it follows the continuous process.Support processesThese are the processes that support the core business e.g., HR, marketing, sales. These processes are still very important in ensuring efficient and effective streamlet of the business.Organisational structure/systemsThe main purpose of an organizational structure is to clear and circumstantial roles and responsibilities for all employees as per their department and hierarchy in the structure. This chequers order and maintains a systematic procedure of doing things, which ensures performance and force. At PPC, the strategy is aimed at flattening the structure and shortens the decision making hierarchy. This in turn can improve efficiency and motivate employees.Systems, Policies and procedurePolicies and procedures are usefu l in guiding and line up the organizations members in their activities and their ports at work.Reward Systems.Performance oversight systemsPerformance management includes activities that ensure that goals are consistently being met in an effective and efficient manner. These could include current observation and measurements to track performance conducted by supervisor.Ongoing feedback about the performance to be given.Quarterly formal performance reviews. This could entails a formal documentation of the progress towards achieving expected terminations, comments on how these were achieved and suggestions on how to improve performance.If performance meets the desired performance standards, rewards should be given.Policies and procedures companionship, skills and abilitiesWith the Kumbuku barf, one of the main aims of the bulge out is to achieve a good match between the requirements of the job and inherent capabilities of individual employees. This could alike acquire the imp act of motivating the employees and lead to job satisfaction and loyalty.TechnologyTechnology is the key to implementation of processes that lead to outputs at PPC. PPC has evaluated its manufacturing technologies and is similar to the best in the industry. However it also essential(prenominal) ensure that its office technologies and service technologies are also of a benchmark standard. For PPC this has meant a big investment in order to achieve highly apt employees.Organisational cultureCollins and Porras (1994 in Clegg et al 1996) showed that it is strikingly obvious that organizational culture lies at the centre of what differentiates visionary companies from comparison companies (and significantly greater economic performance over the long-term). Culture, how we do things around here in order to succeed (Schneider, 1994, 1997), is an organizations flair, identity, pattern of dynamic relationships, reality.Nel et al (2001, p.397) on Harris and Moran (1979, p.32) describes culture as a hereditary knowledge for human cope within a particular environment that is passed on for the benefit of attendant generations, whilst Wilson and Rosenfeld (1990, p.229) defines culture as the basic values, ideologies and assumptions which guide and fashion individual and business behavior. The above definitions both speak to me about the communicable knowledge which Wilson and Rosenfeld explains it to be basic values, ideologies and assumptions. Stapleton (2003) on Trice and Beyer (1984) identifies 4 symbol categories in which this communicable knowledge manifests itself namely practices, communications, bodily forms and common language. These categories are best summarized to prove Deal and Kennedy (1982) definition of the way things get make around here. The way things get done around here can be seen through these 4 categories.PracticesThis refers to common practices at PPC e.g. Awards etc.CommunicationsCommon stories that are generally heard at PPC.Physical fo rmsSome of the notable physical forms could be for example different dress manner between operators and professionals. early(a) examples include allocated parking spaces and offices.Common LanguageRefers to the common language during meetings, tick off boards, procedure and policies.QUESTION 2Employees are at the center of organizational mixed bag initiatives (Tetenbaum 1998).For PPCs Kumbuku project to be successful, employees need to be able to realize that a good organizational culture and climate would as McNabb and Sepic (1995) says bring about lasting reassign though the developing of working conditions in which employees can operate more(prenominal) effectively. Should the reason for change be not understood, the following sources of resistance to change could be experiencedResistance callable to organizational culture Some of the difficulties with change initiatives may be specifyd to deeper, more critical sources, such as the pervasive culture of the organization and the operating(a) climate (McNabb and Sepic 1995). An organizations culture is the deep-rooted set of values and beliefs that provide norms for behavior (Deshpande and Webster 1989 Schein 1992). An organizations climate refers to the ways organizations operationalize routine behaviors and the actions that are expected, supported, and rewarded (Schneider and Rentsch 1988). These two characteristics combine to rule organizational readiness for change (McNabb and Sepic 1995).Resistance due to a pretermit of a holistic billet Another long-known reason for lack of change success is the propensity for organizations to implement piece-meal solutions rather than taking a systems perspective (Ackoff 1974). Stakeholders may be resistance to the Kumbuku project due to the fact that they susceptibility not have a clear understanding of the direction and holistic implication of the strategy the company is pursuing.Resistance by managers People have a natural fear of change and when change is mandated they feel a loss of control (Evans 2001). For many people in an organization, change initiatives stand for a loss of the security that goes with a specific job. Senge and Kaeufer (2000) note that change efforts can induce fear. The management team at PPC could be exist by the introduction the allowance of employees in decision making processes. They might feel redundant and not adding value. Also the change in the PPC management structure putting management at the bottom might result in demotivated management team who does not take pride in its role.Resistance by white employees and managers The fast promotion of black employees could be resisted by white employees, who might feel unfairly discriminated and not valued. alert white managers might also feel unsecured and can also undermine the radically appointed black managers, who they might not attribute their promotion to good performance.Resistance due to unretentive communication Should the Kambuku project not be properly communicated to relevant stakeholders, it could result in poor buy in and failure in implementation. Dawson (1994) discusses the idea of communication and employee closeness being central to the process of change as a important consideration in overcoming the natural resistance that most employees feel.QUESTION 3Johnson (1988) cited on Signal-Horn (2004), defines strategic effort as when gradually, perhaps imperceptibly the strategy of the company will become less and less in line with the environment in which the organization operates. This definition is the same as that of Charles happy (1989) which describes strategic mess up as the subtle changes of the organisations strategy that leads the organization away(predicate) from its intended destination to a destination that is unintended. This means that an organization must continuously review its environment and change its strategy in relation to the change in environment as has PPC in the past five years.The organ izations response to the changing environment is often associated with its culture. Culture in this slip is seen as a contributor to resisting change (keeping the organization in sense of balance as suggested by Lewin force field model) as it stifles innovation and performance, prima(p) to a drift in strategy. This means that for organization to properly implement change they must undergo an appropriate cultural change.For PPC, it might take many more years for it to start experiencing strategic drift but it is important for PPC Chief Executive to look out for the symptoms of strategic drift which could includeDeclining performance.Highly homogenous culture.Little toleration for questioning and thought-provoking of status quo.Reliance on price/cost /competition.Strong causation blockages to change.When some of the above mentioned symptoms are identifies Lewin three stage process of change could be used as interventions to prevent the danger of strategic driftUnfreezing current attitudesThis means that old behaviours and ways of doing things must be seen to be unsatisfactory by the organisation and changed and prohibited. Also the need and the benefits for change must be well communicated. Those resisting change must be confronted and addressed. This could be done by involving them to participate and communicating the value of change. throw to a newfound levelThis is a period of shifting the equilibrium. Here PPC could embark on a search for new solutions which could include information on new values, organisational culture and structure.Refreezing attitudes at the new levelWhen the organisation has found a solution, it can embark on reinforcing and supporting the new strategy through it structure, policies and systems.REFERENCESKreitner, R. and Kinicki, A. (2004) Organisational Behavior. New York, McGraw-HillNel, P.S., Gerber, P.D., van Dyk, P.S., Haasbroek, G.D., Schultz, H.B., Sono, T., Werner, A. (2001) Human Resource Management. 5th edition. Oxford U niversity Press southern Africa.Stapleton T (2003) The Context of Management -Sessions 1-7.OU Business School.Wilson, D.C. and Rosenfeld, R.H. (1990) Managing Organisations Texts, readings and cases, New York, McGraw-Hill.Cameron, S. The Open University (2008). 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