Case Study Of Organisational Restructuring At Greenwood University | Individual Report

Change Assessed Case Study 1

Introduction:

Greenwood University, a mid-tier institution facing financial challenges amidst the current
adverse climate in Higher Education, is facing mounting financial pressures due to declining
enrolments, reduced government funding, and increasing competition.

In response to these challenges, the university’s executive team initiated a series of cost-saving
measures and operational changes aimed at ensuring long-term sustainability. The most
significant of these changes involved the merger of two faculties: Social Sciences (Arts,
Psychology, and Education) and Engineering, resulting in the creation of the Faculty of Art and
Design. What is more, again to address their deficit, senior management suggested to eliminate
some layers of middle management.

Approach to change:

The decision to merge the faculties of Social Sciences and Engineering into the Faculty of Art
and Design was made unilaterally by the university’s executive team, without previously
consulting neither faculty members nor the trade union.

What is more, two members of the executive team including one Dean, who were all crucial in
the restructuring, quit soon after the announcement, and Greenwood struggled to find equally
experienced people to replace them. As a result, the restructuring took place for nearly two
years, thus creating a climate of uncertainty and instability within Greenwood University:

• Staff members, particularly those from the former Social Sciences Faculty, were left in
  limbo, unsure about their future roles and responsibilities within the newly formed
  Faculty of Art and Design. The lack of clarity surrounding the restructuring process
  exacerbated anxieties about potential job redundancies, leading to increased turnover,
  increased number of employees taking sick leave due to stress and anxiety, and job
  dissatisfaction among employees across the now three Faculties.
  

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• The proposed elimination of middle management layers further compounded concerns
  about job security and morale within the university. While senior management justified
  this decision as a measure to render the university more agile, employees were left in
  the dark about how the new organisational structure would affect their roles and
  reporting lines. The uncertainty surrounding job security and career advancement
  opportunities contributed to a sense of disillusionment and disengagement among staff
  members, eroding morale and productivity.

This climate of uncertainty was further instigated by unclear communications which provided
little insight into the rationale behind the changes, leaving employees feeling uninformed and
disconnected from the decision-making process. More specifically, the employees received
monthly bi-monthly newsletters from the Vice-Chancellor, and they were invited only once to an
employee forum. In the employee forum, the executive team just reiterated what was already
known, that is the new structure, and could not provide specific answers to the concerns raised.
Similarly, there were meetings for the middle managers affected by the change but still, they
were not provided enough information as some decisions depending on the key members of the
executive team missing.

The organisational restructuring also prompted a surge in internal politics as employees vied to
safeguard their positions amidst uncertainties about job redundancies. With the restructuring
altering the organisational landscape and potentially reshuffling roles and responsibilities,
individuals sought to assert their influence and protect their interests within the organisation.
This heightened political manoeuvring manifested in various forms, including lobbying for
support from influential colleagues, aligning with strategic alliances, and engaging in power
plays to secure favourable outcomes. As employees grappled with the prospect of job
insecurity, the organisational restructuring inadvertently fuelled a climate of competition and
self-preservation, exacerbating tensions and undermining collaboration within the workplace.

Following the completion of the merger and the restructuring, Greenwood University
anticipated significant cost savings because of streamlining operations and reducing
administrative overheads. However, despite the merger, the university did not achieve the
anticipated financial benefits, exacerbating job dissatisfaction among staff members.
Furthermore, the elimination of layers of middle management, inadvertently created a more
dysfunctional organisational structure. With fewer management layers, employees found it
increasingly challenging to navigate the hierarchy and resolve issues efficiently, leading to
frustration and inefficiencies within the university. As a result, job dissatisfaction persisted,
further undermining morale and productivity across the university. This lack of job satisfaction
and disengagement of the academic staff might have even more detrimental impact on the
university’s financial stability as it might lead to lower student satisfaction rates, which will
eventually mean less student enrolments and less income from research funding.

Assessment Task:

To write an individual 3,000-word academic report, applying the theories and concepts covered
in class to evaluate this change initiative and offer practical recommendations.
Please look at the following suggested structure:

Introduction:

Tell us about the change initiative – what is changing, why is it changing, what were
the triggers for this change, within what context is this change taking place (organisation).
Critically evaluate the context and triggers of change for the organisation.

Evaluation:

Evaluate relevant theories and principles of change management to this specific
organisational change. Critically discuss what is working well and what is not working well?
Critically examine the different dynamics during this organisational change (e.g., psychology of
change, potential sources of resistance, teams’ dynamics etc). Consider the impact of how this
change has been managed on teams (this could include the impact on culture, power and/or
politics of the organisation). Do not try to discuss everything you have found within the case
study, pick a few areas, and discuss these in depth.

Recommendations:

Based on your evaluation, above, what recommendations do you propose
that could improve the implementation or management of this change initiative? As part of your
recommendations, critically examine the role of change agents, HR, and leadership in
implementing and driving these recommendations. Consider the impact of your
recommendations on teams (this could include the impact on culture, power and/or politics in
the organisation). Theoretical and practitioner support is expected here too.

Conclusion:

Summarising your report.

References:

Aim for at least 30 academic references to support your points throughout and
develop your critical discussion.

Answer

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