Applying principles of Organizational behavior and suggesting changes at ALYAF Co Ltd
ORGANIZATIONAL BEHAVIOUR: FINAL ASSIGNMNET
SUGGESTED CHANGES IN ALYAF CO. LTD
The changes in the business environment drive every organization to undergo several necessary changes in their operations, organizational structure and organizational culture. This report evaluates the current organizational procedures, structure and culture of Alyaf industrial Co. Ltd in order to implement necessary changes in the organization.
The report focuses on the mission and vision of the chosen company in order to evaluate the necessary changes that are to be implemented aligning with their policy and strategy. The report evaluates the corporate structure, identifies the areas that require changes. After evaluating the organizational structure, the corporate culture has been evaluated through the framework of Schein’s culture model and also analyses the control systems. The possible resistances to the suggested changes are identified and evaluated in order to understand the conflicts. The solutions of the conflict are also provided. Along with that a force field analysis has been conducted in order to implement the result in bettering the opportunity in accordance with the stakeholders. Technological advancement and required incorporation of the information technology has been subject of the evaluation of the report as well.
The process of implementing the suggested changes and its effect on the organizational outcome has been discussed.
It can be recommended that the involvement of the new production techniques that will be brought in due to the changes in the structure of the organisation and the internal control system will be beneficial for the company.
In accordance with the market needs of the contemporary times it is significant for the leaders or the CEOs to implement necessary changes in the business system of their enterprise in order to improve the present status of the business. It is important to analyse the current corporate structure in order to identify the areas of change and implement the changes accordingly. The current study reflects upon the current structure of ALYAF Co. Ltd and along with evaluating the system of the company attempts to implement necessary changes to the organization.
Aims and objective
The current report aims to shed light upon the organizational structure, corporate culture and the business systems of ALYAF Co. Ltd in order to identify the current loopholes of the system. The loopholes are evaluated in order to effectively implement necessary changes. The chief objective of the report is to provide appropriate recommendation regarding the organizational structure and culture.
The report covers the existing organizational structure and operational systems of the company. The corporate structure of the company is evaluated along with the corporate culture in order to identify the areas of change. A particular engine of change is used in order to implement required changes. Apart from that the visible and invisible control systems are evaluated and the possible resistance in the changing process has been identified. The conflict and the procedures of resolution are analyzed and a force field analysis is conducted to understand the benefits of the changes.
Background of the company
ALYAF Co. Ltd was founded in the year 1992 and it has become the largest manufacturer of geotextiles that operates from its headquarters in Saudi Arabia. This company is considered one of the leading suppliers and manufacturer of smart and environment friendly and technical non-woven solutions (Alyaf.com. 2018). They empower their clients with enriched materials. The products that are manufactured by this company reflects the deep embedded culture upon which the organization is established. The company produces a wide range of promising geo-textiles and their products offer high performance in the following areas:
- Soil stabilization
- Crack relief paving fabrics for asphalt
- Erosion control in marine construction
- Subsurface drainage
- Waste containment systems
The company offers long term environment friendly products along with that they aim at reaching the masses with their products(Alyaf.com. 2018). The moot criterion for employment in the company is dedication regarding manufacturing. The company has significantly pioneered the development of the technical non-woven in the Arab countries.
Vision and mission statement
Vision: Alyaf industrial Company Limited aims at becoming one of the finest manufacturer and supplier of technical nonwovens and smart environment friendly solutions that has the capability and credential to empower the clients and to enrich the communities, they work for (Alyaf.com. 2018).
Mission: This particular company operates in a demanding industry that thrives to provide optimum solutions. Alyaf’s mission is to provide the industry with quality products that are particularly and potently engineered to meet the requirement of the challenging applications (Alyaf.com. 2018).
Corporate structure indicates the amalgamation of several departments within the organization in order to achieve the overall mission and goals of the company. Alyaf has a vertical structure that indicates it has several management levels at the top of which is the CEO of the company. Vertical structure indicates that the organizational success is dependent upon strong leadership skill of the higher authority. But it is important for the company to incorporate several features of the horizontal corporate structure in the organization for operational ease. This company because of its vertical structure has a chain of management (Alyaf.com. 2018).
The CEO at the top of the authority delegate authority to the lower level managers. The company follows a centralized organizational structure that compliments its vertical operational structure. Because the company has several department it is important to incorporate few changes in the management system of the company. However, a matrix structure can not be suitable for the organization because of its complexity (Bleiklie et al, 2015).
This company uses Divisional structure which is also known as the product structure and the division is based on the products and the projects. This is a suitable structure for a multi service organization like Alyaf and it is based on the existing departments in the firm. It is true that using technological advancement the organizations tend to follow a more decentralized structure that is easy to operate. This organization is technically sound and it has the credibility to implement necessary changes in order to decentralize the management process.
Identification of the area of planned change
This particular organization requires necessary changes in the organizational structure and the operational management as well. It is important to understand the need of the necessary changes. Organizational change is necessary for a company to transcend from the current status to a better one. Engine of change refers to the management of organizational change through the process of planning and implementing necessary changes to the areas (Burke, 2017).
It is evident that Alyaf operates in a highly competitive business market and it is therefore essential for the organization to undergo necessary changes in order to sustain their success and in order to remain competitive. Several factors work as the driving force for the organizational changes. In case of Alyaf, it majorly operates from the headquarters of Saudi Arabia. However, it is planning to expand their business globally. Therefore, globalization is one of the major driving forces for the changes required in several operational and management level of the organization.
As far as Alyaf is considered as a manufacturing company it is important for the organization to be technically sound in order to implement necessary changes in several level of the management (Cyert and March, 2015). The areas that required changes are:
- Organizational structure: Alyaf currently operates using a corporate structure that is vertical. Vertical organizational structure indicates a structure that reflects power culture. The important decisions are undertaken by the CEO of the company and there are several management levels. Because of the management levels it is difficult to manage the management process. It is important to understand that because of extreme centralization the organization is facing several issues regarding the operational system. Therefore, it is important to try decentralizing the system (Joseph et al, 2016). As far as the decentralization of the organizational is concerned, it can be implemented through few changes in the current organizational processes through which the company operates. It is important to select a specific organizational structure that is aligned with the service and the products of the organization (Ou.nl. 2018). It is important for the structure to fit the activities, vision and goals of the organization. The organizational structure reflects the convenience of the operational process of the organization. Currently, Alyaf is considered to be a tall company that has a vertical structure and it maintains a chain of management. However having a horizontal structure indicates simplification of the organizational structure and the processes. Apart from that it is cost effective as there is fewer or no level of middle management in the system.
- Decentralization of the system: Along with changing the current corporate structure of the company it is important to implement necessary changes in accordance with the new organizational structure. Therefore, in the regard of implementing Horizontal corporate structure it is also important to implement necessary changes in order to decentralize the complete process of management (Burke, 2017). As this company operates from different departments that are existing in the organization it is important for every departmental head to have a level of autonomy in order to manage each of the departments effectively. The bureaucratic structure of the organization needs to undergo decentralization in order to promote the high level managers and also to involve them in the decision making process. The managers of every department needs to be involved in the decision making process of the organization in order to help the authority to take significant decisions that suits the mission and vision of the organization. Because of the decentralization it can be possible for the departmental heads to be involved in daily activities and they can interact with the subsequent clients accordingly (Burke, 2017). It is better for Alyaf as the departmental heads can interact with their clients more effectively as they have expertise regarding the particular department and the products and projects that they offer.
Corporate culture refers to the organizational culture that reflects the values and the beliefs of an organization. The corporate culture of an organization is formed through the principles and ideologies of the organization and it is aligned with the mission, vision, aim and objective of the organization. However, the corporate culture is often measured through several different cultural frameworks. Schein’s cultural framework used in understanding the corporate culture is consisted of three levels that are Artifacts, values and assumed values (Fiordelisi and Ricci, 2014).
Artifcats: The first level of culture is analysed through the characteristics of the organization that can be viewed and understood from the surface of the organizational structure. The values that are identified from the surface level are collectively known as the artifcats. The dress code of the employees, design of the office, office furniture and the behaviour of the employees come under the artifacts (Guiso et al, 2015). This organization does not implement a strict dress code upon the employees and they are more concerned about the works and the performance of the employees. The professional culture followed by the organization is strict but they do not believe in imposing the code of conducts on the employees.
Values: The next level in the Schein framework is the value of the employees. The individual values of the employees plays an important role in forming the culture of the organization. It is evident that this company averts from workplace discrimination and the individual values of the employees are respected and the organizational code of values are not imposed upon them. However, the company has its own policies that the employees require to abide by. The individual perspective of the managers need to be encouraged in the proposed framework of organizational structure as it demands the involvement of the departmental mangers in the decision making process of the company (Hogan and Coote, 2014).
The core values that Alyaf believes in are integrity, excellence and people. The business that they conduct is promised to be aligned with best integrity and they also undertakes the responsibility of the activities and the actions that they perform. They conduct their business with honesty, fairness and in a straightforward manner (Alyaf.com. 2018). High quality production is their chief aim and they focus on improving the quality of their products according to the need of the clients and they also maintains a sense of urgency in delivering the products. As far as the workforce of the company is concerned they believe in hiring bright minds from the industry. The employees of the company are provided with scope of improvement and necessary training to perform in a better manner (Alyaf.com. 2018). The employees of the organization are not treated as the subordinates and they are rather treated as the partners in business. Therefore, the culture of the organization reflects a clan culture and not the power culture that often de-motivate the employees (Alyaf.com. 2018).
Assumed values: The third level of Schein’s framework is known as the assumed values of the employees. These values can not be measured in a tangible scale but the values have great impact on the organizational culture (Hogan and Coote, 2014). The inner aspects of the human nature come under the third level of the organizational culture. There are several rules of the organization that are not mentioned but the employees tend to follow that. For instance the company does not have any particular policy regarding the harassment of the employees but the employees are not harassed by the managers as it is considered unethical.
Visible and invisible control systems
Like other manufacturing companies, in spite of being a manufacturer of geo-textiles Alyaf follows the COSO framework that was issued in 1992. COSO suggests an internal control that processes through an integrated framework (Pett et al, 2015).
This framework works through several principles and the principles that Alyaf follows are:
- Alyaf selects and develops the general control activities over technology in order to support the achievement of the objectives. Management of the company after reflecting on the contemporary technological advancement, implement new technological solutions that can facilitate the operational procedures of the organization (Pett et al, 2015).
- The organization identifies and also assesses the changes that has the credential to impact the system of internal control (Pett et al, 2015). The changes in the external environment, changes in the business model and changes in leadership are the factors that affects the control system of the manufacturing company like Alyaf.
- The visible control system of the company are the management team that controls the operational activities and the employees. In this regard, it needs to be mentioned that the company generates and uses relevant information in order to support the functioning of the internal control. The monitoring system of the company is another visible control system.
- Behavioral and clan control systems are the internal invisible control systems of the organization. Behavioral control focuses on controlling the actions and in the procedure of internal control several rules and processes are used to structure the behavior. Clan control is another non-standardize type of control and it is highly dependent upon the traditions, expectations, values and norms.
As far as the conventional change literature is concerned, resistance to change is considered as collateral damage of the change endeavours. According to Burke (2017) resistance can be perceived in several forms including withdrawal and material sabotage. Any organizational change is conceived to be desirable and inevitable. In the long term success of the organizations change has always acted as one of the potent driving forces. However, in implementing the change, the initial stage of implementation has always been full of organizational conflicts in several levels (Fiordelisi and Ricci, 2014). As per the indication of the multi-dimensional concept of change management the dichotomy of being against the change is simple and it does not reflect any complex reality of the people;s responses. The resistance has often being reframed as a resource of enhancing the process of change.
The resistances that this company is likely to face are:
- Resistance from the managers: The existing departmental managers of this organization are not acquainted with the process of participating in the decision making processes. However, it is evident that the suggested change require effective participation of the managers not only in the decision making process but in interacting directly with the clients as well. Leaving the operational management to the managers of each department might create issues in the management team as well. It is important to inform them regarding the benefits of the suggested change and as an active participant of the company, it is important for them to welcome the change as well (Goetsch and Davis, 2014). On the other hand their involvement in the process of interacting with the clients might require necessary training regarding the communication skill and it can be implemented as a change as well.
- Resistance from the clients and the customers: This company majorly works as one of the leading suppliers of the geo-textiles manufactured by the organization. As this is a well established company the client base of the company is also established. Therefore, they are not accustomed with interacting with the departmental managers. Though, it is helpful for them to communicate directly with the managers who are associated with a specific project for the sake of information, this factor has the credential to act as a potent resistance.
- Resistance from the employees: Changing the organizational structure and implementing changes in the operational process of the organization indicates that the employees need to perform in a different manner as it has a huge impact of the working culture of the organization (Goetsch and Davis, 2014). Therefore, a resistance can be encountered from the employees of the organization as well.
- There is necessity for implementing new technological changes as well for the decentralization of the organization. As it reduces the number and levels of management chains it is possible to face resistance from the managers of human resource as well. It is important to note that the suggested change needs to be implemented slowly in order to resolute the possible resistances (Goetsch and Davis, 2014).
An area of conflict and explanation regarding its resolve
In an organisation it is seen that any changes that occurs in the organisation due to the implementation of different functions and operations or the inclusion of new strategies in the company brings in changes and conflicts in the company. The main reason behind the conflict that occurs in an organisation due to the changes brought into the system of the organisation is that the some of the employees of the company cannot cope up with the new system or the change that has been introduced. It is seen that any new changes in a company leads to various changes in the functions of the company, the operations of the company, the sales and revenue collection of the company and the production process of the company. Due to this reason it is seen that the different people of the company who are related to the different functions of the company sometimes do not agree with the new changes that are too brought into the company. This leads to various conflicts in the company (Clegg et al, 2015).
There are different types of conflicts that occur in the organisation and these conflicts has been categorised into three parts. The three set of conflicts that can occur in an organisation are personal conflict, intergroup conflict and intra-group conflict. It is seen that in the company ALYAF Industrial Co. Ltd., the proposal of changing the organisational structure of the company and the internal control; system of the company has led to various conflict among the different authorities of the company and also among the stakeholders of the company. It is seen that the conflict that has arose in the company can be grouped in the category of intergroup conflict.
It is seen that the company functions, rather the different departments of the company do not agree with the changes that is to brought in the company which are accounted to be the changes in the structure of the company and the changes in the internal control system of the company. This is due to the fact that any changes in the structure of the company will lead to a huge financial changes for the company which in turn will lead to termination of employees and changes in the pay structure of the company. It is also seen that there will be changes in the budget system of the company. In order to avoid such changes the different functions and the departments of the company are not agreeing with each other and are in the mode of competition in order to restrict the changes that are to be brought in (Wallensteen, 2015).
In order to resolve such conflicts in any organisation or particularly in this organisation the company can adapt to the different methods of resolving conflicts. Some of which has been given below.
Disciplinary actions: it is the setting of policies and rules that is to be followed by the employees in the company in order to mitigate the common set of conflicts that are very common to occur in an organisation while conducting any change in the company.
Negotiation and collaboration: it is a two way system of resolving the conflicts. Where the manager or the CEO can negotiate with the employees to resolve the conflicts or can collaborate with the employees in order to generate new ideas and suggestions that will be helping in resolving the conflict. But it is to be noted that both of these techniques should be sued in the initial stage of the conflict.
According to the current conflict that has occurred in the company ALYAF Industrial, it is seen that the use of the negotiation and collaboration techniques will be effective in resolving the conflict as the proposed idea is new and the conflict is in the initial state.
Select your strategy
There are various strategies that can be used in the organisation in order to bring the changes and manage the change that is too incurred into the system. It is seen that the change that the use of appropriate strategy or rather the use of an appropriate model will be helping the company to bring the changes and manage the changes in the organizational structure and the internal control system of the company. One such model that will be helpful in bringing in the changes in the company and manage the changes is given below.
Lewin’s Force Field Model
Force field model was discovered by Kurt Lewin, who proposed that this model will be analysis mgt he overview of the changes problems that has occurred in an organisation. It will help in identifying the changes that are need to be tackled by the business, and then spitting the factors that are creating the changes and bringing in problems and forcing the factors for the change and against the change. The force factors that bring the change and helps in management of the changes are the employees, the attitudes, the customs, and the habits. Given below is the force field diagram that shows the levels of the change. It is seen that the diagram can be used in the different levels of the organisation and changes that are to be included. In the diagram the driving forces are listed in the left column, the restraining forces are listed in the right column and the arrows are drawn in the middle where the longer arrows show the stronger forces (Swanson and Creed, 2014).
figure: force field diagram
There is various use of this model for the management of changes in an organisation which can be identified and will ensure that the use of this model in the company ALYAF Industrial, will be helping the company to bring in the changes and manage the changes. Some of the use has been described below.
- Using this model there will, be the analysis of the conduction of the investigation that will allow the company to realise the balance of the power that is present in the issue that has been identified to occur in the changes to be made
- This model will help in identifying the most important people who are related to the organisation and the target groups that can be used in order to gain support for the campaigning on the issue that has been identified. Some of the important people related to the company are the stakeholders of the company
- This model will help in identifying the different opponents and the allies of the issue. Every change that is to be incurred in the organization will be agreed on by some of the employees and the individuals related to the company while some of the employees and the individuals will be disagreeing with the changes that are to brought into the company
- The last use of this model is the identifying the tendons that can be used in order to influence the target group who will be helping in bringing the changes in the company and will help in convincing the employees and other people related to the company
There are various steps that are to be followed in order to bring in the changes and use this model of analysis. Steps are given below
- Description Of the current situation
- Description of the described situation
- If no such action is taken then the result of the current situation identification
- Listing of the forces that will drive in changes to reach the required situation
- Listing of the forces that will help in resisting the changes to reach the desired condition
- Identifying the forces and their importance
- Identifying the range of the forces
- Charting the forces in accordance to the driving forces on the left and the restraining forces on the right
- Determining if the change are valid
- Describing the effect of the changes
Identify the key stakeholders and your methods to influence them in your decisions
Stakeholders’ plays an important role in bringing in different changes in an company by approving the changes and sometimes brings in conflicts by restricting the change start are to be occurred. In this company ALYAF Industrial, there are various stakeholders who will be helping in bringing in the change is the structure and the system of the company if they are influenced by providing them the realisation of the benefits of incorporating the current changes in the company. The stakeholders of the company are shareholders, the employees, the creditors, the government, and most importantly the customers of the company.
There are various ways in which the stakeholders can be influenced in bringing the changes that has been proposed by the CEO of the company ALYAF Industrial. Some of the ways has been listed below.
- Providing a detailed report on the various effects and benefits that will be created in response to the proposed changes. It is important to note tha5t the stakeholders of the company has been investing their time, labour and money in order to gain profit from the company in terms of revenue, reputation and payment, thus it is important to give them a detailed report on the benefits of the changes
- Providing a demo of the changes that is to be brought and showing the effectiveness of the new changes
Information Technology and what positive & negative changes due to the impact of information technology
The use for information technology in the company ALYAF Industrial has been able to bring in both positive and negative changes in the company. The current technologies that are available in the present business world are very much effective in increasing the overall productivity in the company. This in turn creates various changes in the company. Some of the changes are positive and some are negative which has been listed below.
- It is seen that the company has used various new technologies in the company which has increased the overall productivity of the company
- The use of the new technologies has led to better product quality and service that is being provided pot the customers
- There is an increase in the rate of customers availing the service of the company ALYAF Industrial, thus increasing the sales of the company
- With increase in the sales of the company, there has been increasing in the overall revenue generating the company
- The use of the advance and the upgraded technologies in the company has led to the brand reputation maximisation. This in turn has increased the level customer retention and the number of candidates applying in the company for employment
- Despite of the use of technologies in the company, there has been decrease in the employee retention as the previous employees are not able to cope up with the new technological procedures and the practices that has been included in the production procedures of the company
- There has been changes in the budget of the company as cost of including the technologies have been more
Thus, it can be concluded from the given report that the company ALYAF Industrial which has proposed to bring in new changes in the organisational structure and the internal control system of the company has been bringing in various changes in different states of the company. It has been noted that the ne3w system that is to be brought in has been affecting the overall system of the company but the inclusion of the new structure and the control system will be helping the company to get better results and production.
- Thus, it can be recommended that the current proposed system will be effecting the overall production of the company
- There will be better scope of employment and increase in the brand reputation