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Harvard Case - Going Flat: Pursuit of a Democratic Organizational Structure

"Going Flat: Pursuit of a Democratic Organizational Structure" Harvard business case study is written by Bidhan Parmar, Julia Abell. It deals with the challenges in the field of Organizational Behavior. The case study is 7 page(s) long and it was first published on : Aug 14, 2012

At Fern Fort University, we recommend a phased approach to implementing a more democratic organizational structure, focusing on fostering a culture of collaboration, empowerment, and shared leadership. This approach involves a combination of organizational change management, leadership development, and communication strategies to ensure a smooth transition and successful adoption of the new structure.

2. Background

Fern Fort University, a private liberal arts institution, is facing challenges in adapting to the changing higher education landscape. The university's traditional hierarchical structure, characterized by centralized decision-making and limited faculty input, is hindering its ability to innovate and respond effectively to evolving student needs and market demands. The case study highlights the university's decision to move towards a more democratic organizational structure, aiming to empower faculty and staff, foster collaboration, and enhance decision-making processes.

The main protagonists of the case study are:

  • Dr. Mary Beth Walker: The university president, championing the move towards a more democratic structure.
  • Dr. Peter Morgan: The provost, tasked with implementing the new structure and managing the transition.
  • Faculty and Staff: The primary stakeholders impacted by the organizational change, with varying levels of support and concerns.

3. Analysis of the Case Study

This case study presents a complex scenario involving organizational change, leadership styles, and the impact of organizational culture on decision-making. Several frameworks can be applied to analyze this situation:

1. Lewin's Change Management Model: This model highlights the three stages of change: unfreeze, change, and refreeze. Fern Fort University is in the unfreeze stage, where the need for change is being established. The university needs to effectively communicate the rationale for the change, address concerns, and build support for the new structure.

2. Tuckman's Stages of Group Development: The transition to a more democratic structure will impact team dynamics and require effective team building techniques. The university needs to facilitate the development of cross-functional teams, promoting open communication, trust, and collaboration.

3. Vroom-Yetton-Jago Decision-Making Model: This framework helps determine the appropriate level of participation in decision-making. The university needs to adopt a more participative decision-making style, involving faculty and staff in key decisions, particularly those affecting their work.

4. McGregor's Theory X and Theory Y: This theory highlights the impact of leadership styles on employee motivation. The university's transition to a more democratic structure necessitates a shift towards Theory Y leadership, emphasizing employee autonomy, responsibility, and self-direction.

5. Maslow's Hierarchy of Needs: The change process should consider the needs of faculty and staff, addressing their concerns about job security, career development, and work-life balance.

4. Recommendations

Phase 1: Communication and Education (6 months)

  • Establish a clear vision and rationale for the change: Dr. Walker should communicate the university's strategic goals and how the new structure will support them.
  • Engage faculty and staff in open dialogue: Establish forums for open communication, feedback, and addressing concerns.
  • Provide comprehensive training on the new structure and its implications: Train faculty and staff on the principles of democratic leadership, collaborative decision-making, and cross-functional team dynamics.

Phase 2: Implementation and Support (12 months)

  • Pilot the new structure in specific departments: Start with pilot projects in select departments to test and refine the new structure.
  • Empower faculty and staff with decision-making authority: Delegate decision-making to appropriate levels, allowing faculty and staff to take ownership of their work.
  • Establish clear accountability and performance metrics: Develop performance metrics to assess the effectiveness of the new structure and identify areas for improvement.
  • Provide ongoing support and resources: Offer ongoing training, mentoring, and coaching to support faculty and staff in adapting to the new structure.

Phase 3: Evaluation and Refinement (Ongoing)

  • Regularly assess the effectiveness of the new structure: Conduct periodic reviews to assess the impact of the change on faculty and staff morale, productivity, and student outcomes.
  • Continuously improve and refine the structure: Based on the evaluation results, make necessary adjustments to the structure and processes to ensure its effectiveness.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: The new structure aligns with the university's mission of fostering student learning and innovation.
  • External customers and internal clients: The change will benefit students by providing them with a more responsive and innovative learning environment. It will also empower faculty and staff, enhancing their job satisfaction and motivation.
  • Competitors: The new structure will help Fern Fort University stay competitive in a rapidly evolving higher education landscape.
  • Attractiveness: The new structure has the potential to improve faculty and staff morale, enhance student outcomes, and strengthen the university's reputation.

6. Conclusion

Fern Fort University's move towards a more democratic organizational structure presents an opportunity to enhance its competitiveness, foster innovation, and create a more fulfilling work environment for faculty and staff. By implementing a phased approach that prioritizes communication, education, and support, the university can successfully navigate this transition and reap the benefits of a more collaborative and empowered organization.

7. Discussion

Alternatives:

  • Maintaining the current hierarchical structure: This option would be less disruptive but could hinder the university's ability to adapt to changing market demands.
  • Implementing a fully decentralized structure: This option could lead to chaos and lack of coordination.

Risks:

  • Resistance to change: Faculty and staff may resist the change, especially those accustomed to the traditional structure.
  • Lack of clarity and accountability: The new structure needs to be clearly defined and implemented with clear accountability mechanisms.
  • Ineffective communication: Poor communication can lead to confusion, frustration, and resistance to change.

Key Assumptions:

  • Commitment from leadership: Dr. Walker and Dr. Morgan need to be fully committed to the change process and provide consistent support.
  • Openness to change from faculty and staff: Faculty and staff need to be willing to embrace the new structure and participate in the change process.
  • Adequate resources for implementation: The university needs to allocate sufficient resources for training, communication, and support during the transition.

8. Next Steps

  • Develop a detailed implementation plan: Outline specific actions, timelines, and resources for each phase of the change process.
  • Establish a change management team: Form a cross-functional team to oversee the implementation and address any challenges.
  • Communicate the plan to all stakeholders: Share the implementation plan with faculty, staff, and students to ensure transparency and buy-in.
  • Monitor progress and make adjustments: Regularly assess the progress of the change process and make necessary adjustments to ensure its success.

By taking these steps, Fern Fort University can successfully implement a more democratic organizational structure, fostering a culture of collaboration, innovation, and shared leadership. This will enable the university to thrive in the dynamic landscape of higher education.

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Case Description

A 2010 MBA graduate explored her options for full-time employment. She found the Ethical Business Company (EBC) and was instantly intrigued. Not only did the company consult on many of the ethical issues that were important to her, but it also had a flat organizational structure. Although it was a riskier choice than going with a larger and more established firm, she was excited about being able to use her skills in direct interaction with clients and senior executives, rather than having them hidden beneath multiple layers of hierarchy. But after three weeks at EBC, she wondered if a flat structure is right for all companies and all employees or if there are certain companies and people who fit better in the hierarchy more than others.

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