Investigations into the Effect of Structural Composition on the Efficiency of Multinational Bodies

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Author
Al Hajery, Hazza
Date
2020Type
Thesis
Publisher
Cardiff Metropolitan University
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This research can be gathered under the general heading of Cybernetics (the study of organisational
structure) which subsumes Systems Thinking. The researcher believes that multinational companies
can be considered as complex systems, with emergent behaviour. Most existing studies and models
have been conducted from a Western perspective and are set in the context of simpler organisational
structures. There is no knowledge of a synthesis of three systemic methodologies (Soft System
Methodology, System Dynamics and Viable Systems Modelling) to non-western, comprehensive
regional intergovernmental organisations, such as the GCC, has been previously attempted which
addresses a gap in knowledge.
The global economy has seen the rise of many multinational organisations and it is important that these
are organised and managed in the most effective and efficient manner. The optimal organisational
structure for such organisations is not known and there is no definitive method for doing the analysis
Two possible (and contrasting) scenarios are a centrally controlled organisation with limited autonomy
for the members or a looser federation of autonomous states with a nominal controlling body. Examples
of the former are the United States of America and the European Union whilst the Swiss Federation is
an example of the looser configuration. This is therefore a fertile area for research to examine possible
organisational structures and to develop viable organisational models in other locations, settings or
contexts (Asian, Middle Eastern, South American). This is a gap in knowledge that this research
addresses.
The purpose of this research is to discover if three major systemic tools can be efficiently and usefully
employed to analyse multinational institutions. The GCC was selected as a case study. One reason for
this selection is that it is very difficult, if not impossible, to obtain reliable information for such large
multinational organisations. Due to the position of the researcher in the hierarchy of the GCC, it was
possible to obtain data that would have been difficult for others to obtain which itself is a contribution
to knowledge.
The SSM was used to create a clear picture of the purpose/identity of the organisation and to identify
inherent difficulties in the existing organisational structure of the GCC. The VSM was chosen as a more
detailed diagnostic tool and was used to construct a model of the existing organisational structure. The
VSM model was then used to suggest changes to alleviate the problems raised in the SSM analysis. One
such issue was the possibility of the GCC acting as a supranational entity. To do so would entail a
radical structural transformation which is outside the remit of this research but the qualitative aspect of
SD (using causal diagrams to explore “what if “situations) was used to investigate this possibility.
The results demonstrated that this combination of the three systemic tools was a reliable method to
tackle the problems of multinational organisations. It can serve as a guide for the GCC and other similar
organisations in effectively coping with complexity. In particular, the present study can help managers
re-shape the organisations they are running to form new organisational structures that are anchored on
autonomy and flexibility rather than on traditional hierarchical structures which are rigid and thus, are
rendered incapable of coping with the dynamically- changing environment.
Description
PhD Thesis - School of Management
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