Deliverable 7 - Reorganization

Corporate Culture and Change

Organizational Behavior Analysis

Rasmussen College

Jeff Rover

06/07/18

Nojax’s culture entails centralization of authority where employees wait for guidelines and direction from the senior management team. More so, they are closely monitored in order to ensure that they are able to reach the set goals. A culture where the senior management is responsible for all activities experiences some challenges relating to human capital management. For instance, employees are neither satisfied nor motivated as they feel being treated like programmable machines (Lussier & Achua, 2016). They are not allowed to take part in important business functions such as decision-making. On the other hand, the workers are not frequently engaged in team performance hence there is poor worker-to-workers relations which also negatively impacts performance. Essentially, a culture where employees are not treated as part and parcel of the organization leads to inefficiency in human resources management where an outcome such as a higher rate of turn-over is likely.

The company’s structure is also a contributing factor to the culture. Nojax has a matrix culture which calls for explicit division of labor meaning that every manager is mandated to attain a specific goal. When such is done, there are likely outcomes that are possible. One, synergy which refers to doing more with less is not likely to be achieved as worker are programmed to attain a certain desired result (Schein, 2010). Two, innovation in production and performance are not easily achieved as diversity is not promoted. For instance, Nojax does not have a culture where diversity in decision-making is promoted meaning that innovation is limited. Third, the structure does not promote interrelationships between departments which also contributes to the culture of centralization of authority and sidelining of employees.

As was earlier ascertained, the organization has continually stuck to autocratic leadership style where the senior management is responsible for making all business decisions. Parties such as employees and mid-level managers are no consulted during decision-making which demotivates and makes them feel unappreciated (Schein, 2010). More so, the latters’ concerns and needs are not likely to be known and addressed in a timely manner. On the other hand, an autocratic leadership style does not promote diversity in decision-making as pointed out earlier. Cumulatively, the organization will experience hindrances to innovation and efficiency in productivity as decisions made may negatively impact the performance of the workers. Finally, the style makes the senior personnel bosses as opposed to leaders meaning that junior employees and mid-level managers are not likely to upto them.

Based on the issues outlined above, there is an urgent need for the organization to change the structure and leadership in order to promote a culture that will make employees feel as part of the organization. When it comes to leadership, a democratic style allows for leaders to consider the viewpoints and concerns of all parties (Lussier & Achua, 2016). For instance, employees should be consulted and their views considered before a major decision can be made. That will make them feel a new sense of belonging hence making them motivated which will gradually impact performance. On the other hand, a modification in structure is needed. It is not practically easy to change the matrix structure but there are modifications that can be made. For instance, the structure should enable interdepartmental performance through work teams that will be aiming at attaining common goals. Doing so will promote diversity and worker-to-worker relations subsequently impacting performance positively.

Reference

Lussier, R. N., & Achua, C. F. (2016). Leadership: Theory, application, and skill development (6th ed.). South-Western College .

Schein, E. H. (2010). Organizational Culture and Leadership. New York, NY: Jossey-Bass.