Task
It is often assumed that existing organization theory is necessarily ‘bad’ and that new ideas about the organization are necessarily ‘good’. This logic then animates an imagined need for constant organizational change. Building on what you have learned in this module, write an essay that explains why this overly simplistic representation of organization theory is misguided and develop an argument that defends the importance of all organization theory – as you have encountered it throughout this module – for the organization of business
Importance of an Organization-Wide Theory: Physical Structure Perspective
Introduction
The importance of organization theory is profound for human resource management in an organization. Regarding organizational theories, it is commonly thought and practiced giving significance to new ideas and theories. The stance is reasonable and appropriate concerning the changing environment in the industry. However, it does not represent the whole situation and all the requirements needed for an organization. New theories or ideas are useful and essential, but businesses should evaluate them based on their area of application. The importance of all organization theory is very high because any aspect of the organization should be negligible. This essay is going to make the case to support an all-organization theory where human resources are at central importance. If an organization adopts an all-organization theory or idea, it will necessarily benefit the organization because it invites new ideas and practices to an organization (Michael and Popov 2016). In this regard, a focus on physical structure can be useful as it connects culture, social structure, and technology aspects within an organization. The organization and its every department should be on board in the implementation of theory, and this essay has focused on the physical structure. A focus on the physical structure and its related components can improve the performance of an organization extensively.
Discussion
There is a common assumption that existing organizational theory is not good, and it is the response to the dynamic environment outside. Organizations have to adapt to a new environment; therefore, they need new ideas and theories. This notion is not baseless because it is right in the beginning. New ideas and theories are essential so, and any organization cannot sustain its business without embracing new avenues of knowledge and innovation. There are numerous research studies and evidence to establish this fact because the application and interpretation of old theories have also been changing continuously. The question that arises here is whether a new theory is inevitably needed for an organization, or it acts an assisting role. The answer to this question would change the perspective altogether. Even an organization adopts a new theory that is consistent with the needs of it, and it may not be valid if there is a lack of infrastructure or basic attributes of the organization. Therefore, a new theory should not ignore the role of an organization and its environment (Camelia et al. 2019).
A theory consists of some ideas, concepts, and views those implements to an organization. Hawthorne’s studies in lecture four are a clear example of how a theory or framework has its implementation in an organization. However, it is not always the case that a theory results in the same results. Many organizations apply the same techniques and strategies to engage employees, but their results are different. Examples in the technology sector include Microsoft, Google, and Apple. All three companies have unique cultures, but they tend to engage and motivate employees. They decide on the location of their business and operations so that they can effectively attract the best talent. They are equipped with the latest technologies, but the level of innovation is tremendously higher in Google than Microsoft. It shows that there lacks an essential ingredient of effectiveness, and it is because of the absence of all organization theory (Regis-Hernández et al. 2017).
An all-organization theory is not the name of any theory, but it indicates the need for a theory that covers the whole organization. However, perspectives to go on the way towards all organization theory may be different. Making the case towards the importance of all organization theory, one has to adopt a proper perspective. Among numerous aspects, this essay has taken the view of the relationship between the physical elements of the organization. Tangible elements of an organization and physical structure are essential, along with the adoption of a theory. The location, layout, proximity, and human interaction act fundamentally towards effectiveness and good results for an organization. Therefore, the importance is to take every aspect of an organization that includes the consideration for physical elements. This essay has focused on the physical elements and layout of an organization. This perspective acts as a way for an organization’s theory based on the physical structure. A physical structure has to coordinate with culture, social structure, and technology so that it can contribute to overall wellness and the excellent performance of an organization. An organization has to focus on its physical layout. This focus can communicate a common sense of feelings and emotions among its employees. It can also send a message of cooperation to employees and stakeholders through a cohesive and coordinated structure (Miragaia et al. 2014).
A theory is ineffective if it does not integrate with the physical structure. Elements of culture, social structure, and technology overlap with the physical structure. It means an all-organization theory has to consider these elements to its fullest. The focus on marketing, human resources, operations, and other functions is the topic of many research studies. There is little focus on the physical elements of an organization. The theory applies to the marketing function gives benefit to only the marketing field. It is stressed that the marketing department should interact and coordinate with other departments and functions.
Similarly, a theory applies to human resource management focuses on employees, and it urges to be relevant for all employees of an organization. When a theory has to make effective results for a specific department, there leaves little room for an all-organization theory. In this context, consideration of physical structure becomes essential because it integrates different functions and departments of an organization. Ideas like flat organization and linear hierarchy are in line with all organization theory. They enable efficient communication among employees. In contrast, if an organization has departments with big walls between them, it becomes difficult for integration and coordination.
Location is a vital element in the physical structure of an organization that contains human geography and physical geography. Locations play a crucial role, and an organization has to consider it. Location decisions should be in light of an organization’s needs. Usually, multinationals have their headquarters in the United States and production plants in China or other Asian countries where the cost of production is low. It is the reason behind the location. A talented and knowledgeable workforce is abundant in the United States that is necessary for corporate-level decision-making. In production units, low cost is the priority. The discussion on location is further essential because of its attributes. In human geography, essential characteristics are economic, social, and cultural aspects of an organization’s environment. They are part of an organization, and all organization theory calls for considering employees working in production units in China or other Asian countries. The distant location of production units may not ignore their importance. They also need integration into the overall organizational culture. If they produce products with low quality, it is not valid for the organization. It does not require a new theory to integrate them, but they need an organization-wide application of existing theories. Similarly, elements of physical geography are essential (Jan-Willem et al. 2018).
Companies decide their locations based on industrialization. Countries with a high level of industrialization and infrastructure are suitable for production or manufacturing. Even if any technical or technical skill is needed, an organization has to consider elements of physical geography. A highly urbanized and dense population provides more opportunities for an organization. The diverse workforce and population are more creative; that is the need of today’s organization. These decisions about location have multi aspects, and there exist several theories to consider them. It is time not to find a different new theory for each element, but it is time to think organizationally wide. It means there is a need for an all-organization theory, so that all aspects of an organization may come into the spotlight. If an organization does not take every member of its supply chain, it can succeed in the long run. It has to integrate and coordinate with each aspect of its operations and functions. It is the reason why sustainability and social responsibility have deeply integrated into the actions of all stakeholders; otherwise, an organization does not remain successful (Willems and Van Marrewijk 2017).
Another critical element of the physical structure is the layout of an organization. It is vital for the adoption of organization-wide theory. The layout has further subheadings of proximity, privacy, openness, and accessibility. An organization should accommodate these characteristics. So, the whole organization comes along with the need for changes. Details about proximity are in the following paragraph. This paragraph discusses the value of privacy and openness. Both these characteristics seem to contradict, but they are related to each other. For instance, privacy promotes the independence and freedom of an employee. It is crucial to allow individual contribution or input into the whole organization. Every employee has to contribute to the overall goal and vision of an organization. However, openness opens the room for cohesion and coordination. In the presence of openness, individual action becomes part of the whole organizational culture. The third element of accessibility is also related to it as every employee should enjoy accessibility. Privacy protects individual differentiation, while openness allows sharing thoughts and practices with others openly. Accessibility is the attribute that makes it happen. These are elements of the layout, and this component of physical structure allows the implementation of an organization-wide theory (Asçi 2016).
The significance of layout in an all-organization theory is tremendous, and it can be further explained. The case to be established is that an all-organization theory is more suitable than the need for a new theory. The relevance of layout in this context should be understandable. If an organization has an existing and old theory, but it has not been working well. Attention to organizational layout can make the case to adopt such a strategy or theory that applies to the whole organization. Google is the company that has such openness and accessibility among its employees that their knowledge and expertise multiplied. They are allowed to work on their areas of interest. It is in line with privacy, but they have to act as per openness as well. It has resulted in Google’s way, and it does not complain about the ineffectiveness of a theory. It has promoted Google Cafes and Google Moderator that have demolished walls among departments. Increasing coordination and collaboration among employees have led to the success of the whole organization. This example states the importance of the layout of an organization (Goswami and Goswami 2010).
An element of the layout is the proximity, that is the nearness of people to one another. An organization-wide theory gets possible through proximity that increases human interaction. An organization has to locate its activities in a location that is near to talented and skilled human resources. This aspect has been discussed in the decision-making process of headquarters location and production location. An increase in human interaction with an organization removes the need for a department-specific theory because the whole organization comes into consideration. The focus of the entire organization becomes possible through an increase in proximity and human interaction. These elements of the physical structure should have a relationship with each other so that existing theory can be integrated well within an organization. However, only physical structure cannot serve the job for an all-organization theory. Instead, it has to deal with other organizational attributes like culture, social structure, and technology (Jan-Willem et al. 2018).
The culture of an organization is critical, and it determines the future and long-term focus of an organization. Learning and innovative organizations have a culture that promotes new knowledge and practices. An organization is a producer of new knowledge that is the result of tacit knowledge of its employees. It is not imitable and may become a real competitive advantage for an organization. If an organization has such an inspiring culture, it does not complain about theory. It does not need to change theory only for the sake of getting success. Instead, it has to focus on its culture. So that, more integration of its employees and their actions can solve problems and issues for it. Culture is not confined to one department, but it is a collective asset of the whole organization. Moreover, it cannot be bought or changed overnight. It nurtures and takes a lot of time to be part of an organization. Employees are known for their attitudes and behaviors. They make organizational behavior that is distinct and unique. Any change in culture requires an organized approach; therefore, a change in a department cannot serve the purpose of an organization (De Paoli et al. 2019).
Social structure and technology also play a role in physical structure. Artificial intelligence and the Internet of Things have changed the way the physical structure works for an organization. It has demolished physical boundaries among employees and has made them closed to each other. In other words, they have increased the proximity within an organization and its employees. The social structure makes a case for them, too. Because a cohesive and integrated social structure within and outside of an organization leads to an organization-wide approach, this focus on the physical structure and its overlapping components suggests no need for a new theory; instead, an organization needs to bring changes in its organization. There are different departments within an organization. This essay has focused on physical structure, and it shows how crucial the overall structure of an organization is (Behera and Mishra 2017).
The above arguments state that any new or existing theory has nothing to do well for an organization if there is not any organization-wide approach. An organization theory or every theory that benefits an organization is vital because of its effectiveness. This essay has taken the physical structure perspective, and in so doing, it has shown that a mere focus on the physical structure can serve many benefits for the organization. The case of Hawthorne studies is an example that has been explained extensively in the fourth lecture. It shows that the implementation of the theory is useful if the organization has other attributes favoring its effective implementation. Marketing theory does good for the marketing function, and an operations theory works best for operations. The focus should be on the environment and culture so that fundamental changes may take place. A focus on employees is inevitable because they lead to a change in an organization. It is of utmost importance to consider that a theory can result positively only if it has a suitable environment around it. A mere theory cannot serve well for an organization if there is a lack of organizational support (Coradi et al. 2015).
Physical structure, location, layout, and related attributes are important, but they have not been studied extensively about organizational theory and employee behavior. An employee should get an environment that enables her to contribute innovatively to the organization. Moreover, an organization should take its stakeholders on board as well. Every member of the supply chain should also come along so that a policy or direction can be streamlined at all levels. Choosing a new theory is a straightforward solution that makes the case over-simplistic. Organization theory is the solution that contains an organization-wide perspective of theory. For this purpose, an increasing collaboration of employees and openness in culture can result positively. Therefore, organizations should not stick to a particular theory or function, but they should work on culture and employees. This essay has shown how physical structure can serve the job for them. In this way, an organization should have such a comprehensive approach towards its actions and policies. No doubt, human resources are at the center of these actions because they lead to a change in an organization over a long-term basis (Yeong and Keith 2014).
Conclusion
The essay concludes that a new theory is useful, but the focus should be on an organization-wide theory. An organization theory can work more effectively than different theories targeting a specific department or function of an organization. It is not wrong to adopt and implement a new theory to an organization, but it should not always be the case. It is an overly simplistic attitude towards theory adoption and implementation. It is better to have an organization theory that is ingrained into the organization deeply. It is not a big science to have such a theory because there might be no need for any theory at all. This essay gives an example of Google that has promoted the Google way. Another notable organization, Toyota, is known for its strong culture and practices. They have focused on human resources and culture involving them. As a result, they have been able to bring changes across the organization.
This essay has taken the perspective of the physical structure that remains unnoticed by researchers and students. The discussion has revealed that attention to the physical structure and its components can bring an organization-wide change. An organization may not need to adopt a new theory, but it should work on increasing collaboration and coordination among employees. The organization layout and structure can do so, and it would result in positive outcomes. An existing theory or practice should go through this criterion of employee collaboration and cohesion. It would effectively result in favor of all employees and the organization. The essay recommends taking a comprehensive approach towards making policies and implementing theories so that the whole organization can benefit. It also recommends considering every aspect of the organization to be effective in theory implementation.
References
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