Summary

The purpose of this report is to recommend the concerns about the merging of the Abbey College and City College. This report will include the impact on acquisition and its effects on the new organizational structure. Research for this report includes a detail study on the organization structure and the effects of merging and how it impacts the culture of an organization.

The major findings indicate that there is a need for some leadership styles and motivation to the staff working in both the colleges. This report suggests the leadership styles that should be followed for the healthy functioning of the college after the merger.

While it is clear that the staff needs will vary, this report recommends the approach that the new management should follow in its new organization structure for a successful functioning of the college.

Introduction

An organization structure specifies the clear picture that specifies the various job tasks and shows how the jobs are grouped, divided and coordinated. With the help of an organization structure, management is able to achieve its objectives. The organization structure depicts the hierarchy of authority and the reporting relationships. There are different types of organizational structures from traditional to modern structure that includes functional, product- based, matrix and modern virtual organizations. Each type of organization structure has its advantages and disadvantages.

Organization structure is the paradigm in which the jobs in an organization are divided based on tasks, control, authority (people) and power. The organization structure defines the hierarchy and the way the jobs are grouped and tasks are accomplished in a coordinated manner. Here are the 4 types of culture after Charles Handy:

Power culture	Concentrates power among a little cluster or a central figure and its control is divergent from its centre sort of a spider’s web. Power cultures want solely a couple of rules and tiny bureaucracy however a swift in decisions will result.
Role culture	Authorities are delegated intrinsically among extremely outlined structure. These organizations type graded bureaucracies, wherever power derives from the personal position and infrequently from a knowledgeable power. Management is formed by procedures (which are extremely valued), authority definitions and strict roles descriptions. These organizations have consistent systems and are predictable. The role culture is compared with a “Roman Building” having pillars. These pillars represent the practical departments.
Task culture	Teams are shaped to resolve specific problems. Power comes from the team with the experience to execute against a task. This culture uses a little team approach, wherever individuals are extremely skilful and specialized in their own space of experience. In addition, these cultures usually feature the multiple news lines seen during a matrix structure.
Person culture	Formed wherever all people believe themselves superior to the organization. It will become tough for such organizations to still operate, since the conception of a company suggests that a bunch of similar people pursue structure goals. but some skilled partnerships operate well as person cultures, as a result of every partner brings a specific experience and business to the form.

(Charles Handy, 1976)(Online)

In general, Organizations structures are defined based on work specialization, departments, chain of command, formalization and centralization and span of control. The factors that determine the structure are size, strategy, technology and the organization environment.

The commonly known organization structures are: flat, tall and matrix.

Flat Organization Structure

Flat Organization Structure – This type of organization has a few layers in the hierarchy, a wide bottom and gentle slope to the top. The span of control is wide and just a fewer level of management. Generally small companies follow this structure.
Advantages	Disadvantages
1. Flat organization is less costly because it has few managers.	1. There are chances of loose control.
2. It creates levels of management.	2. The discipline in the organization may be bad due to lose control.
3. Quick decisions and action can be taken because it has only a few levels of management.	3. The relations between the managers and employee may be bad. Close and informal relations may not be possible.
4. Fast and clear communication is possible among these few levels of management.	4. There may be problems of team work because there are many subordinates under one manager.
5. Subordinates are free from close and strict supervision and control.	5. Flat organization structure may create problems of coordinates between various subordinates.
6. It is more suitable for routine and standardized activities.	6. Efficient and experienced superiors are required to manage a large number of employees.
7. Superiors may not be too dominating because of large numbers of subordinates.	7. It may not be suitable for difficult activities.
	8. The quality of performance may be bad.

Gaurav Akrani- Flat Organisation (Online)

Tall Organizational Structure

Tall Organizational Structure – this type of organization structure has many layers and chain of command is longer and managers have smaller spans of control with limit delegation.
Advantages	Disadvantages
1.     The quality of performance will improve due to close supervision.	1.     Tall Organization creates many levels of management.
2.     Discipline will improve.	2. There are many delays and distortion in communication.
3.     Control and Supervision will become easy and convenient.	3.    Decisions and actions are delayed.
4.     Superior – Subordinate relations will improve.	4.   It is very pricey as a result of there is several managers. The managers are paid high salaries.
5.     The manager gets more time to plan and organize the future activities	5.  It is difficult to coordinate the activities of different levels.
6.     The efforts of subordinates can be easily coordinated.	6. There is strict supervision. That the subordinates don’t have any freedom.
7.     Tall Organization encourages development of staff.	7. Tall Organization is not suitable for route and standardized jobs.
8.     There is mutual trust between superior and subordinates.	8. Here, managers may become more dominating.

 Gaurav Akrani- Tall Organisation (Online)

Matrix Organizational Structures

Matrix Organizational Structures – has dual reporting line for employees who are based on product and functionality. It was introduced in the 1960’s to solve management problems in the United States. There is a combination of two or more organization structures. E.g., Project Organization and Functional Organization.
Advantages	Limitations
Sound decisions: All decisions are taken by experts. Therefore, the decisions are very good.	Increase in Work Load: Work load is extremely high. The managers and staff not solely need to do their regular work, however even have to manage alternative extra works like attending varied meetings.
Development of Skills: It helps the workers to widen their skills. Marketing individuals will study finance. Finance individuals will find out about marketing.	High Operational Cost: in a matrix organization, the operational cost is incredibly high. This can be as a result of it involves lots of work, reports, and meetings.
Top Management can concentrate on Strategic Planning: The Top Managers can spend more time on strategic planning. They can delegate all routine, repetitive and less important work to the project managers.	Absence of Unity of Command: in a matrix organization, there’s no unity of command. This is often because: every subordinate has 2 bosses,   the Manager and Project Manager.
Specialization: The Functional Manager focus on the technical matters but the Project Manager focuses on the administrative matters of the project.	Power Struggle:  The functional managers and project managers are looking after their interest, which causes conflicts.
Optimum Utilization of Resources: many projects are run simultaneous. There is optimum use of the physical and human resources. No wastage of resources.	Morale: is very low. Because employee works on different projects at different times.
Motivation: The employer’s works in teamwork so they are motivated to do better.	Complexity: the most difficult and complex type of organization.
Higher efficiency: High returns at lower costs	Shifting of Responsibility: When the project fails, the project manager put the responsibility on manager, blaming him/her for the failure.

Gaurav Akrani- Matrix Organisation (Online)

Recommendations

Mr Wakefield should use tall structure which has clear hierarchy and smaller chains of command which has more control and clear communication.

The culture of the organization plays a vital role. The structure and the culture of an organization complement each other in an organization. The culture can be defined as the beliefs, values, ideologies, shared vision and mission and ethics that an organization holds. Each organization has different culture and it is passed from employee to a new entrant in the organization. In simple terms organization culture is the actions of the staff towards their work, meaning culture explains how organizations do things.

With the merging of two colleges the change that happens is the change in reporting persons. The Abbey College principal is redundant and hence the staff of the Abbey College will be reporting to the principal of the City College. With the new reporting head the staff would be uncertain about their prospects and the new line of command. Assuming that the cultures of Abbey and City colleges are different, it is essential for the principal of City College to step in and develop and execute a practical approach to cultural integration.

Mr Wakefield should drive the staff based on vision, values, policies and the work environment. Mr Wakefield should provide a work environment that is relationship oriented and not task oriented and promote internal integration. A proper cultural integration process should be established that constitutes the following elements.

• Outcomes of the merger or acquisition should be well defined and it should be team and knowledge oriented and should be a culture of excellence.
• The culture of the new organization should be framed such a way that it is high in risk tolerance and focuses on means as well as outcomes and the same should be informed to all the staff in the organization.
• An adaptive culture can be established which helps the organization to grow and change as needed to achieve its goals and be effective.
• Define a new structure of organization and explain the span of control and define the roles and responsibilities of each staff.
• The job satisfaction of the employee is based on the organization culture and hence Mr Wakefield should define a culture that acts as a model.

Change in management causes a strain in the staff of the organization. The reasons for the same are multiple. It can be fear of losing the job because they fear their own failure. The staffs that hold power and authority tend to fear of losing the political advantage in the advent of change. The change process involves increasing stress, uncertainty of losing jobs or job positions and emotional insecurity.

Moreover another leading stress factor is the retrenchment that leads to the change in remuneration. The efforts should be taken to overcome the pressure of the staff from both the organizations by stabilizing a change intervention-Managing change.

According to Michael Mattson and John Ivancevich, the factors that influence individual differences in behavioural patterns are:

Demographic Factors	-are socio economic background, education, race, age, sex, nationality, etc. Organizations like persons that belong to sensible socio-economic background, young, educated etc. as they’re believed to be playing higher than the others. The young, dynamic professionals that have sensible effective communication skills and educational background are continuously in high demand. Demographic factors are important because it helps to select the appropriate candidate for a specific job.
Abilities and Skills	Ability is that the physical capability of a person to try and do one thing. The flexibility to act during a method that enables an individual to perform well may be outlined as skills. The individual behavior and performance is extremely influenced by ability and skills. If an individual talents and skills are matched with the task demand he/she will perform well within the organization. A very important role in matching the skills and skills of the workers with the actual job demand is contending by managers.
Perception	-The knowledge meant for interpreting the environmental stimuli during a meaning means. The perception of a personal is influenced by several factors. A crucial role for the managers is competing by the study of perception. It’s necessary for mangers to form the favorable work atmosphere in order that staff understands them in most favorable means. The staff square measure seemingly to perform higher if they’re planning to understand it in a very positive means.
Attitude	– may be outlined as an inclination to reply favorably or unfavorably to certain persons, objects or things. The factors like culture, family, society, peers and organizational factors influence the formation of perspective. The leaders in an organization would like to form the work setting in a favorable approach that workers are tempted to create a positive perspective towards their jobs. The staff will perform higher within the organisation if they have a positive perspective.
Personality	– The study of the characteristics and distinctive traits of an individual, the inter-relations between them and also the method during which someone responds and adjusts to people and situations. The temperament of an individual is influenced by many factors like heredity, family, society, culture and scenario. Temperament will be considered the foremost advanced facet of persons that influences their behaviour. Sort of a conclusion the study of temperament traits offers a chance to know the worker. Helps managers properly in directional their effort and motivating them for the accomplishment of the organisational goal. In fact, completely different completely different} environmental factors might generate different responses. These responses are important for the organisation. The organisation demands a selected form of behaviour from their staff and such behaviours will be discovered through coaching, observation, learning, exposure.

Michael Mattson and John Ivancevich(online)(Accessed on 11.10.2013)

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