Evolution of Organizational Structure: A Case Study Example of Cisco Systems

During the Cisco 1 period, the organization experienced various challenges that hindered its effectiveness. Therefore, the organization changed its structure to improve its operations. The Cisco 2 structure reduced the workforce and reduced the number of suppliers. The reduction of the workforce resulted in enhanced efficiency and a reduction of the cost of production while increasing profits. Additionally, the Cisco 2 structure centralized the functional groups to integrate technologies in its operations (Cisco systems: Evolution of structure, n.d). As a result, there was improved efficiency and reduced the overlap of tasks in the organization. The structure also allowed the senior managers to make the decisions and set the goals and strategies to achieve the objectives. Therefore, each functional group works towards a common goal, thus enhancing the efficiency of the organization. The workforce also focused more on their projects and goals without interruption from other groups. Ideally, the change of structure from Cisco 1 to 2 periods enhanced the efficiency and productivity of the organization.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

The implementation of changes in an organization is faced with various challenges. In Cisco 3, the organization aimed to change from the traditional top-down structure to an amorphous approach that involved horizontal committees (Cisco Systems: Evolution of Structure, n.d). The new structure is likely to face resistance from the employees. The more amorphous structure seems complicated, thus resulting in opposition from the employees. Additionally, the organization is expected to face challenges while acquiring temporary working groups. In Cisco 3, the organization integrates the technology into its operations (Cisco systems: Evolution of structure, n.d). Therefore, the organization is likely to suffer from a lack of technical skills and knowledge among the existing employees. As a result, the company will increase the cost of production that is incurred to facilitate the training program to equip the employees with technological skills. Additionally, the company will be required to invest in technical equipment, thus increasing the cost of production. In the structure, the organization incorporates social media as a marketing strategy. Therefore, the organization is at risk of facing cybersecurity issues, which affects their data privacy. As a result, the company requires more employees to boost their technical knowledge in a bid to protect their data from illegal access. Ideally, the implementation of the Cisco 3 structure will expose the organization to the risk of data security, lack of technology skills, and resistance to the changes from the employees.

Cisco’s corporate culture aligns and supports the Cisco 3 organizational structure in different ways. For example, the Cisco corporate culture allows the use of technology to address issues that affect people in the world. In the Cisco 3 structure, the organization uses technology systems, such as videoconferencing to connect with its customers and colleagues around the globe (Cisco systems: Evolution of structure, n.d). As a result, the company manages global operations effectively. Additionally, the company’s corporate culture aims at empowering employees and improving their involvement in decision-making in society. In the Cisco 3 structure, the employees collaborate with the managers to decide on new products and marketing approaches. In the structure, the employees and the managers partner to enhance the efficiency and growth of the organization. Cisco’s corporate culture, despite its support for the Cisco organizational structure, misaligns with the structure in some instances. For example, the organization encourages fun outside the job. However, in the Cisco 3 structure, the employees are strictly involved in the operations, thus limiting their involvement in fun activities. Ideally, the Cisco corporate culture is observed in some elements of the Cisco 3 structure.

Cisco, despite its high value for technology, emphasizes sustainability. Sustainability is a critical element of organizational development. Sustainability also improves an organization's competitiveness since it attracts more consumers, customers, or clients to the company. In this case, Cisco focuses on sustainability to solve global issues such as poverty, climate change, and unemployment (Cisco Systems: Evolution of structure, n.d). By solving such problems, the organization achieves its corporate social responsibility. The sustainability of Cisco plays a crucial role in maintaining its relevance in the market. Sustainability also allows Cisco to integrate changes such as technology in the organizations to boost its operations. Emphasis on sustainability also allows the organization to achieve its corporate culture by participating in activities aiming to solve global issues. Therefore, sustainability strategies allow the organization to participate in environmental conservancy activities and practices to control climate change in society. Additionally, sustainability plays a significant role in the promotion of the culture and values of an organization. In this case, Cisco emphasizes sustainability to promote teamwork in a bid to achieve a common goal. Primarily, Cisco emphasizes sustainability to promote its corporate goals and relevance in the industry.

References

Cisco systems: Evolution of structure (n.d). Integrative case 10.0. Cengage Learning.