Student 01
Saudi Basic Industries Corporation (SABIC)
COLLAPSE
Introduction
Saudi Basic Industries Corporation (SABIC) is a chemical-producing company in Saudi Arabia.
Saudi Aramco owns seventy percent of SABIC shares. The company is active in petrochemicals,
chemicals, industrial polymers, fertilizers, and metals. The formal organizational structure that has
existed in the company for a long time has encouraged change (Deszca,2019). The firm had
Enterprise Resource Planning (ERP) system, which has made it easier for Accounting Information
Systems (AIS) to be integrated.
Organization structure
Nine members manage Saudi Basic Industries Corporation (SABIC). Five members are
nominated by Public Investment (PIC), representing government shares, including the chairman, vice
chairman, and CEO. The vice chairman and CEO operate as a team, and the vice chairman can
represent the chairman when he or she is absent. The board members are elected during the general
meeting. The Board of directors is made up of four committees that help the Board in accomplishing
its duties. The four committees include the Audit, Nomination and Remuneration, Risk and
Sustainability, and Investment. The performance of the Board, together with these committees, can
be reviewed periodically to enhance their effectiveness in achieving goals.
How do the existing structures and systems affect the ability of a change leader to bring
change?
The type of structures and systems at SABIC makes it easier for the change leader to bring the
desired change to the company. The fact that the Board and the committees that work with it can be
reviewed periodically to improve their effectiveness in achieving the desired goal makes it easier for
the change leader to propose the type of structure that will assist in successful change. The kind of
systems operating in SABIC company also makes the work of change leaders much more
straightforward. For instance, it uses Enterprise Resource Planning (ERP) systems (AlMuharfi,2014). ERP systems are designed in such a way that they can address issues of
fragmentations by integrating and streamlining business processes using a suite of software
modules. The modules cover all the functional areas of an enterprise to enhance and simplify internal
organizational processes to give real-time information for accurate decision-making. The new
leadership intends to bring change by integrating Enterprise Resource Planning systems with
Accounting Information systems (AIS), which can work effectively in SABIC if the company has
already implemented ERP.SABIC will use AIS to collect, store, manage, process, retrieve and report
financial data. AIS assists different departments within the same firm in working together, using
software and hardware to store and retrieve information. There was already an ERP system in SABIC.
Therefore, the work of the change leader was made more accessible because it used the already
existing system to bring new change by introducing AIS in the already existing ERP.
The influence of formal and informal systems and structures on the success or failure of
change
SABIC’s organizational structure is formal in that they aim to achieve specific goals. For
instance, SABIC is headed by a Board of directors with four committees to assist in achieving its goals.
The Board and the four committees can be replaced once it has been proved that they cannot make
the company achieve its objectives. This formal structure has a positive impact on making the change
leader achieve his objectives because it relies on authority according to chains of command
(Hashaw,2019). SABIC has clear leadership hierarchies, and these hierarchies and their powers are
well documented. Decisions are made at the top, and then it flows down words. Formal structure in
the company enables employees and the management to work as a team to achieve the same goal.
There are laws and rules which control labor and norms within SABIC. Formal companies depend on
status for influence; therefore, employees at SABIC rely on leadership to guide how the change will
be implemented.
Did the organizational structures and systems reduce or increase the uncertainty and
complexity of change in the company?
Organizational structures reduce the uncertainty of change in a company because the
company has a formal structure with clear rules and regulations. The company also had specific goals
to achieve, and they were ready to do away with leaders who were not ready to achieve them.
Therefore, the work of a change leader was made easier because he or she had the power to work
with only those who were for change.
Conclusion
In conclusion, the type of structures and systems in the company determines whether the
change will succeed or fail. Change in SABIC has been successful because it has a formal structure
with specific goals. The board members and its committee could be reviewed so that those who could
not help the firm achieve its goals were replaced. Due to this, the work of the change leader was made
easier because he was free to work with the only team for change and make the company realize its
objectives. Therefore, firms should form structures that make it flexible for the company to change
its ways of operation.
References
Deszca, G., Ingols, C., & Cawsey, T. F. (2019). Organizational change: An action-oriented toolkit. Sage
Publications.
Al-Muharfi, A.-R. (2014, June 5). Accounting information system lessons from Implementing
Enterprise Resource Planning in a Saudi case study. Science Alert. Retrieved September 27,
2022, from https://scialert.net/fulltext/?doi=tasr.2014.326.344
Hashaw. (2019, April 2). What is the difference between an informal & formal organization? Small
Business
–
Chron.com.
Retrieved
September
27,
2022,
from
https://smallbusiness.chron.com/difference-between-informal-formal-organization-18282.html
Student no 02
Influence of Systems and Structure on the Organization
The organizational system and structure influence the organization greatly as it creates
the working outlines and sets target aims to achieve the goals within the estimated timeframe.
An accurate working system of an organization engages all the employees to perform effectively
and ensure the successful implementation of a new change in the organization (Deszca et al.,
2020).
Type of Organization Structure
Organizational structure recommends that all the workforce align their work according to
the company workflow. The well-organized organizational structure is the “Hierarchical
Structure.” This type of organizational structure is used by large companies dealing with
managing the organization’s working levels. At every level, it identifies every department’s role
and provides more opportunities to re-develop their expertise in their specific field. The large
famous multinational company Amazon is worked on the base of “Hierarchical Structure.” The
recent working force in the company is approximately 560,000 all over the world. Implementing
a hierarchical structure based on a circular supply chain allows business organizations to deal
effectively with the potential issues related to workforce diversity (Tseng et al., 2022).
Structure and Systems Affect the Ability of the Change leader
Effective organizational structure and system have created the abilities in the leadership to
make new changes and determine the roles and responsibilities of the employees to work
according to it. An authentic leader of the organization works as the change manager in the
company who can make new desired changes and constantly focus on the use of advanced
technology and fulfilled the customers’ expectations (Oreg & Berson, 2019).
Formal and Informal Systems Influence Success
Both formal and informal organizational system put a large influence on the success of the
company.
•
Formal System
Such a system in which new rules and regulations are set that must be followed by all the
company employees with full devotion and hard work.
•
In Formal System
Whereas the informal system focuses on the working relationship of companies with other
companies. A dynamic number of changes are created in the interest of both sides of the
communities (Van De Mieroop et al., 2019).
Organizational Structures can Reduce or Increase the Uncertainty of Change in an
Organization.
Implementing a new working methodology can reduce the effect of uncertainty in the
organization’s structure. However, company leadership must minimize the upcoming challenges
and reduce the uncertainty among their employees. It is always impossible to face global
uncertainties because many companies face negative and positive impacts. Flexibility in team
management is the main factor in removing the concept of uncertainty in work which can be
seen in complexity and volatility (Ling et al., 2021).
References:
Deszca, G., Ingols, C., & Cawsey, T. F. (2020). Organizational change: an action-oriented toolkit.
Sage Publications.
Ling, B., Liu, Z., Chen, D., & Sun, L. (2021). Team Flexibility in Organizational Change Context:
Antecedents and Consequences. Psychology Research and Behavior Management, Volume 14,
1805–1821. https://doi.org/10.2147/prbm.s332222
Oreg, S., & Berson, Y. (2019). Leaders’ Impact on Organizational Change: Bridging Theoretical
and Methodological Chasms. Academy of Management Annals, 13(1), 272–307.
https://doi.org/10.5465/annals.2016.0138
Tseng, M., Ha, H. M., Tran, T. P. T., Bui, T., Chen, C., & Lin, C. (2022). Building a data‐driven circular
supply chain hierarchical structure: Resource recovery implementation drives circular business
strategy. Business Strategy and the Environment. https://doi.org/10.1002/bse.3009
Van De Mieroop, D., Clifton, J., & Verhelst, A. (2019). Investigating the interplay between formal
and informal leaders in a shared leadership configuration: A multimodal conversation analytical
study. Human Relations, 73(4), 490–515. https://doi.org/10.1177/0018726719895077
Purchase answer to see full
attachment
Saudi Basic Industries Corporation (SABIC)
COLLAPSE
Introduction
Saudi Basic Industries Corporation (SABIC) is a chemical-producing company in Saudi Arabia.
Saudi Aramco owns seventy percent of SABIC shares. The company is active in petrochemicals,
chemicals, industrial polymers, fertilizers, and metals. The formal organizational structure that has
existed in the company for a long time has encouraged change (Deszca,2019). The firm had
Enterprise Resource Planning (ERP) system, which has made it easier for Accounting Information
Systems (AIS) to be integrated.
Organization structure
Nine members manage Saudi Basic Industries Corporation (SABIC). Five members are
nominated by Public Investment (PIC), representing government shares, including the chairman, vice
chairman, and CEO. The vice chairman and CEO operate as a team, and the vice chairman can
represent the chairman when he or she is absent. The board members are elected during the general
meeting. The Board of directors is made up of four committees that help the Board in accomplishing
its duties. The four committees include the Audit, Nomination and Remuneration, Risk and
Sustainability, and Investment. The performance of the Board, together with these committees, can
be reviewed periodically to enhance their effectiveness in achieving goals.
How do the existing structures and systems affect the ability of a change leader to bring
change?
The type of structures and systems at SABIC makes it easier for the change leader to bring the
desired change to the company. The fact that the Board and the committees that work with it can be
reviewed periodically to improve their effectiveness in achieving the desired goal makes it easier for
the change leader to propose the type of structure that will assist in successful change. The kind of
systems operating in SABIC company also makes the work of change leaders much more
straightforward. For instance, it uses Enterprise Resource Planning (ERP) systems (AlMuharfi,2014). ERP systems are designed in such a way that they can address issues of
fragmentations by integrating and streamlining business processes using a suite of software
modules. The modules cover all the functional areas of an enterprise to enhance and simplify internal
organizational processes to give real-time information for accurate decision-making. The new
leadership intends to bring change by integrating Enterprise Resource Planning systems with
Accounting Information systems (AIS), which can work effectively in SABIC if the company has
already implemented ERP.SABIC will use AIS to collect, store, manage, process, retrieve and report
financial data. AIS assists different departments within the same firm in working together, using
software and hardware to store and retrieve information. There was already an ERP system in SABIC.
Therefore, the work of the change leader was made more accessible because it used the already
existing system to bring new change by introducing AIS in the already existing ERP.
The influence of formal and informal systems and structures on the success or failure of
change
SABIC’s organizational structure is formal in that they aim to achieve specific goals. For
instance, SABIC is headed by a Board of directors with four committees to assist in achieving its goals.
The Board and the four committees can be replaced once it has been proved that they cannot make
the company achieve its objectives. This formal structure has a positive impact on making the change
leader achieve his objectives because it relies on authority according to chains of command
(Hashaw,2019). SABIC has clear leadership hierarchies, and these hierarchies and their powers are
well documented. Decisions are made at the top, and then it flows down words. Formal structure in
the company enables employees and the management to work as a team to achieve the same goal.
There are laws and rules which control labor and norms within SABIC. Formal companies depend on
status for influence; therefore, employees at SABIC rely on leadership to guide how the change will
be implemented.
Did the organizational structures and systems reduce or increase the uncertainty and
complexity of change in the company?
Organizational structures reduce the uncertainty of change in a company because the
company has a formal structure with clear rules and regulations. The company also had specific goals
to achieve, and they were ready to do away with leaders who were not ready to achieve them.
Therefore, the work of a change leader was made easier because he or she had the power to work
with only those who were for change.
Conclusion
In conclusion, the type of structures and systems in the company determines whether the
change will succeed or fail. Change in SABIC has been successful because it has a formal structure
with specific goals. The board members and its committee could be reviewed so that those who could
not help the firm achieve its goals were replaced. Due to this, the work of the change leader was made
easier because he was free to work with the only team for change and make the company realize its
objectives. Therefore, firms should form structures that make it flexible for the company to change
its ways of operation.
References
Deszca, G., Ingols, C., & Cawsey, T. F. (2019). Organizational change: An action-oriented toolkit. Sage
Publications.
Al-Muharfi, A.-R. (2014, June 5). Accounting information system lessons from Implementing
Enterprise Resource Planning in a Saudi case study. Science Alert. Retrieved September 27,
2022, from https://scialert.net/fulltext/?doi=tasr.2014.326.344
Hashaw. (2019, April 2). What is the difference between an informal & formal organization? Small
Business
–
Chron.com.
Retrieved
September
27,
2022,
from
https://smallbusiness.chron.com/difference-between-informal-formal-organization-18282.html
Student no 02
Influence of Systems and Structure on the Organization
The organizational system and structure influence the organization greatly as it creates
the working outlines and sets target aims to achieve the goals within the estimated timeframe.
An accurate working system of an organization engages all the employees to perform effectively
and ensure the successful implementation of a new change in the organization (Deszca et al.,
2020).
Type of Organization Structure
Organizational structure recommends that all the workforce align their work according to
the company workflow. The well-organized organizational structure is the “Hierarchical
Structure.” This type of organizational structure is used by large companies dealing with
managing the organization’s working levels. At every level, it identifies every department’s role
and provides more opportunities to re-develop their expertise in their specific field. The large
famous multinational company Amazon is worked on the base of “Hierarchical Structure.” The
recent working force in the company is approximately 560,000 all over the world. Implementing
a hierarchical structure based on a circular supply chain allows business organizations to deal
effectively with the potential issues related to workforce diversity (Tseng et al., 2022).
Structure and Systems Affect the Ability of the Change leader
Effective organizational structure and system have created the abilities in the leadership to
make new changes and determine the roles and responsibilities of the employees to work
according to it. An authentic leader of the organization works as the change manager in the
company who can make new desired changes and constantly focus on the use of advanced
technology and fulfilled the customers’ expectations (Oreg & Berson, 2019).
Formal and Informal Systems Influence Success
Both formal and informal organizational system put a large influence on the success of the
company.
•
Formal System
Such a system in which new rules and regulations are set that must be followed by all the
company employees with full devotion and hard work.
•
In Formal System
Whereas the informal system focuses on the working relationship of companies with other
companies. A dynamic number of changes are created in the interest of both sides of the
communities (Van De Mieroop et al., 2019).
Organizational Structures can Reduce or Increase the Uncertainty of Change in an
Organization.
Implementing a new working methodology can reduce the effect of uncertainty in the
organization’s structure. However, company leadership must minimize the upcoming challenges
and reduce the uncertainty among their employees. It is always impossible to face global
uncertainties because many companies face negative and positive impacts. Flexibility in team
management is the main factor in removing the concept of uncertainty in work which can be
seen in complexity and volatility (Ling et al., 2021).
References:
Deszca, G., Ingols, C., & Cawsey, T. F. (2020). Organizational change: an action-oriented toolkit.
Sage Publications.
Ling, B., Liu, Z., Chen, D., & Sun, L. (2021). Team Flexibility in Organizational Change Context:
Antecedents and Consequences. Psychology Research and Behavior Management, Volume 14,
1805–1821. https://doi.org/10.2147/prbm.s332222
Oreg, S., & Berson, Y. (2019). Leaders’ Impact on Organizational Change: Bridging Theoretical
and Methodological Chasms. Academy of Management Annals, 13(1), 272–307.
https://doi.org/10.5465/annals.2016.0138
Tseng, M., Ha, H. M., Tran, T. P. T., Bui, T., Chen, C., & Lin, C. (2022). Building a data‐driven circular
supply chain hierarchical structure: Resource recovery implementation drives circular business
strategy. Business Strategy and the Environment. https://doi.org/10.1002/bse.3009
Van De Mieroop, D., Clifton, J., & Verhelst, A. (2019). Investigating the interplay between formal
and informal leaders in a shared leadership configuration: A multimodal conversation analytical
study. Human Relations, 73(4), 490–515. https://doi.org/10.1177/0018726719895077
Purchase answer to see full
attachment
