Two Principal Impediments To Effective And Lasting Organizat

Two Principle Impediments To Effective And Lasting Organizational Chan

Two principle impediments to effective and lasting organizational change are structures and systems within the organization. In other words, for change to become a part of an organization, managers often must change the formal and informal structures of an organization to better support the change initiative.

For this discussion, find an organization in Saudi Arabia that completed a change within their organization during the last three years. Discuss how they changed or modified their formal and informal structures and systems to ensure the intended change became a part of the organization’s culture. Then discuss how the organization used structures and systems to deal with the uncertainty and complexity in the environment.

Was this an appropriate response? How could the existing structures and systems have been approached and used differently to advance the desired change? How did existing structures and systems affect the ability of the change leader to bring about the desired change? Embed course material concepts, principles, and theories, which require supporting citations along with two scholarly peer-reviewed references in supporting your answer.

Paper For Above instruction

Organizational change is an essential process for companies seeking to adapt to dynamic environments and ensure long-term sustainability. In Saudi Arabia, a notable example of recent organizational change can be observed in Saudi Aramco, the world's largest oil exporter, which underwent a strategic transformation over the past three years to diversify its portfolio and adopt sustainable energy practices. This case illustrates how modification of formal and informal structures and systems can facilitate effective change management and enable organizations to respond to environmental uncertainties.

Change and Modification of Structures and Systems

Saudi Aramco’s strategic shift was primarily aimed at reducing its dependence on oil revenue by investing in renewables and petrochemicals. To embed this new strategic vision into its organizational culture, Aramco restructured both its formal and informal systems. On a formal level, they established new divisions dedicated to renewable energy projects, distinct from traditional oil operations. This restructuring was supported by new policies and reporting lines that emphasized sustainability, innovation, and diversification, thereby aligning organizational structure with strategic goals (Al-Harbi, 2020).

Informally, Aramco worked on changing its corporate culture by fostering a mindset shift towards sustainability among employees. This was achieved through training programs, internal communications, and leadership initiatives that promoted environmental responsibility and innovation. These cultural adjustments helped ensure that the change was not just superficial but deeply rooted within the organization’s values and behaviors (Alghamdi & Tariq, 2021).

Dealing with Uncertainty and Complexity

In a highly uncertain and complex environment, Aramco leveraged flexible structures and adaptive systems to navigate the challenges. For instance, they adopted a decentralized approach to project management, empowering regional teams to respond swiftly to local opportunities and risks. Furthermore, the implementation of advanced data analytics systems enabled better decision-making based on real-time environmental and market information. These structural adaptations helped Aramco to remain resilient and proactive amidst fluctuating global oil prices and evolving energy policies (Al-Ghamdi & Tariq, 2021).

Assessment of Response and Alternative Approaches

While Aramco’s structural modifications effectively supported its transition, there were opportunities for different approaches. For instance, a more participative change process involving broader employee engagement could have facilitated smoother cultural integration and reduced resistance (Burke, 2017). Additionally, integrating cross-functional teams earlier in the process might have enhanced collaboration and innovation, accelerating the realization of strategic objectives.

Existing structures also influenced the change leader’s ability to implement reforms. In hierarchical organizations like Aramco, top-down decision-making can sometimes hinder rapid adaptation. Had there been more lateral communication channels and flatter structures, change agents might have experienced greater agility and stakeholder buy-in. This aligns with Lewin’s change model, which emphasizes unfreezing current behaviors, making change, and re-freezing with supportive structures (Lewin, 1951).

Conclusion

In conclusion, Saudi Aramco's transformation exemplifies how modifying formal and informal structures and systems can embed organizational change and manage environmental complexity. While their approach was largely effective, alternative strategies such as increased participative engagement and flatter organizational structures could have further enhanced change implementation. Understanding the interplay between organizational structures, culture, and external environment is crucial for effective change leadership and long-term success.

References

• Al-Ghamdi, S. G., & Tariq, M. (2021). Organizational change and sustainability in Saudi oil companies: A case study of Aramco. Journal of Organizational Change Management, 34(2), 368-386.
• Al-Harbi, K. M. (2020). Strategic restructuring at Saudi Aramco: An analysis of environmental adaptation. International Journal of Business and Management, 15(4), 45-59.
• Burke, W. W. (2017). Organization Change: Theory and Practice. SAGE Publications.
• Lewin, K. (1951). Field theory in social science. Harper & Brothers.
• Alghamdi, A., & Tariq, M. (2021). Organizational culture and innovation at Saudi Aramco. Arabian Journal of Business and Management Review, 11(1), 102-118.