Organization Theory - Report Example

Running Head: ORGANIZATION THEORY Organization Theory Name Institution Date Introduction Organizations are considered as social processes which are constructed, performed as well as well-experienced. The key element within such perspectives, therefore, views an organization as not a stable and static entity of social order, but as an ongoing multiplicity of efforts at ordering. Therefore, for any apparent stability achieved results from more or less successful efforts made at developing networks of relationships amongst heterogeneous actors who inhabit an organizational space. In this respect, organization is perceived to be the language, techniques and practices through which individuals govern their conducts as well as how they relate to the other actors within and without their organization arena. Study examines how the liberalization, privatization, international ambition and networked organization change episodes have been implemented through the application of systems approach in KPN, a Dutch Telecom operator. This transformation process provides a unique opportunity to systematically examine the relationship between a corporate architecture and the organizational change. This has been achieved through owing to the liberation, deregulations and privatization of KPN that has transformed from the government owned type of monopolist to a privatized corporation. Currently, KPN operates within the global telecom market. Identification of organizational change episode success Initially, operating as government owned telecom, KPN was characterized as the monopolistic, bureaucratic as well as technology oriented. The civil servants were very loyal this organization and valued its high quality telecom infrastructure against costs. However, their employees later on faced with privatization when the Dutch government accepted to liberalize all of its national telecom markets. Therefore, the technological advancements, new government policies on telecommunication sector as well as the increased awareness telecommunications a vital sector within the global trade system. All these factors collectively influenced the need to have fundamental changes in the telecom sector. In order to cope with the changes, KPN Telecom successfully implemented some three major change programs from 1990-2010 and of different episodes such as privatization episode from 1990 to 1995, international ambition episode from 1996 to 1999 and networked organization episode from 2000 to 2010. Explicit description and analysis of organizational change episode in KPN In privatization change episode, KPN was still operating as a monopolist at a national market but with ambitions. However, the government of Dutch forced KPN to spread its headquarters Hague and Groningen located in the North of Netherlands. This was aimed at stimulating employment opportunities to the economically weaker regions. The KPN Board of Directors, who controlled the privatized organization, discarded the concept of split headquarters and occupied the AA tower where spatial and cultural change was claimed. This implies that systems approach is applied in KPN Telecom where the power relation is well symbolized through spatial settings of the AA tower with a symbol of human body. Therefore, adoption of such a system approach to organizational change management, suggests that changing organizations undertakes building a network of various relationships amongst the entities of an organization. However, these must be defined and shaped to overcome the various resistances so as to effectively contribute to a particular goal of change in an organization. International ambition was another change episode where KPN was no longer considered as a monopolist. At this level, the organization was listed among the global stock markets of Amsterdam, New York, London and Tokyo. As a result, the new management was recruited so as to change the organization’s management style, develop international market, put more focus on the customers as well as improve its entrepreneurship skills. Due to this, the value of international activities increased to a more significant level and KPN’s strategic alliances which made the subsidiaries of the organization to be situated within the foreign telecom markets, particularly in Eastern Europe and South-East Asia. This indicates how mobile telecom and the internet are both fast growing markets. Therefore, implementation of the international ambitions was a change episode that developed entities so as they can feature either some general or abstract model of an organization, for instance, to be considered as more complete. Organizational development should make extensive use of the general systems theory in order to achieve this and consider organizations as open systems that often interact with their environment. During the international ambition period, various change programs were implemented in order to make KPN organization a more efficient, international, entrepreneurial, cost-effective and transparent. As a result, the chief executive officer (CEO) of KPN suggested that changes were to be supported by some new symbols. The internationalization period was then considered as the golden age of the organization. Today, it can be argued that both the internet and mobile markets are developing explosively and KPN has several international acquisitions, operating at the global telecom markets with various offices through out the world. This implies that in making efforts to work with communities on issues that involve social change, a theoretical framework has the capability to make a difference in understanding, analyzing as well as acting in what may often be considered as a complex situation. Therefore, this argues for the application of general systems theory framework in management of international issues of an organization. The networked organization change episode indicates the new KPN headquarters under construction. For instance, Moon plaza project as a complex structure of about 85,000 square meters within the 13 offices. At this level of change, each of the business unit in KPN owns a separate building. This indicates a shift from the early modern aim space that was rigidly fixed by some hierarchies to a more or less subjective and flexible space, implying that Moon plaza is a clear example of the spatial power expected to dominate the plaza. By 2010, the organization was truly changed. Today, KPN is identified to be in full competition with extra international ICT service operators that are highly pragmatic and more cost-oriented. The newly considered value orientations include entrepreneurial, competitive, stakeholder value and commercial. Therefore, KPN which is a telecom operator has transformed from a monopolistic operator that was initially characterized by fixed telecom infrastructure to a more commercial Information and Communication Technology (ICT) service provider. This implies that ideas and concepts of the general systems theory if well implemented can be considered as valuable ways to understand and conceptualize the needs of human beings, communication links, communities and organizational environment. Emerging as a useful approach for working with on issues of social change, general systems theory provides a unique perspective and framework for managing organizational change. A sketch diagram of the change episode in KPN Telecom Company The above illustration indicates how monopolistic, privatization and strategic alliance structures in the sub-systems have been implemented for the organization to shift from its monopolistic state through privatization and international ambitious state to a more networked organization. The double arrows shows how the changes in the subsystems affected each other to reach the ultimate change or goal of a networked organization. On the other hand, single and bigger arrows indicate the change processes that were undertaken in KPN organization to reach its current operation as a networked organization. Usefulness and appropriateness of a general (social) systems approach for thinking about organization Systems thinking are very important in exploring the systemic dimensions of various organizations, communities as well as translational entities that search for universal principles enactments, functioning and dynamics. The approach is also appropriate in achieving social innovation that entails the various models of implementing innovation activities within social systems that are geared towards great sustainability, practicing social responsibility and building of communities. It is apparent that today systems thinking are required more than before since people are becoming overwhelmed by the idea of complexity. This implies that humankind has the ability to create more information than can be absorbed, able to foster greater interdependencies than anyone else can manage and the capability to accelerate change faster than other individual’s ability to keep pace. However, the nature of social systems and their associated sub-systemic structures as well as the relations that sustain them in a given period of time, vary so much from organization to organization. Through the application of the general or social approach thinking to analyze the buildings of KPN as reflected in its last episode of change, indicates how corporate architecture has resulted in powerful representations of the organizational ambitions as well as corporate value orientations. The systems approach of reorganizing the spatial settings of KPN is directly related to centralization of power and control executed by BoD in the organization. In addition, the shift of KPN headquarters away from the centre of socio-political state to the city’s corporate outskirts can be interpreted within the context of privatization process. It acts as a strong signal to Dutch government not to interfere with the new organizational changes. This spatial shift represents the process of commercialization and corporatization implemented by KPN as a telecom operator. Therefore, organizational theories which individuals develop through sense-making are influenced by various contextual dependencies that arise from own experience and environment. Conclusion Ideas and concepts of the general systems theory are valuable ways to clearly understand and conceptualize entities such as human beings, communication links, communities and organization environment. Extensively proved to be a useful approach for working with social change, the theory of general systems offers a more unique perspective and framework for managing organizational change episodes. Adoption of systems approach to organizational change management implies that changing organizations undertakes building a network of various relationships amongst the entities of that particular organization. The systems approach of reorganizing the spatial settings of KPN is directly related to centralization of power and control. The shift of KPN headquarters away from the centre of socio-political state to the city’s corporate outskirts can be interpreted within the context of privatization process. Read More