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Student Name Section IUD No IBS No
Gopal Krishan D 0901202792 09BS0002792
Course Code: SL GM 612 Course Name: Business Strategy-2 Faculty Name: Jacob Chandy
Topic of the Assignment
Arts Council England ± New Structure for New Challenges
Introduction: The foundation of Arts Council England (ACE) was laid way back in the year 1940 when Committee for Encouragement of Music and the Arts (CEMA) was established under a Royal Charter. It was established with an objective of promoting the performing, visual and literary arts in England. But there have been huge changes in this organization relating to responsibilities transformation from center to geographical regions and again back to the center with strategically designing of organizational structure. The changes were made in accordance to the changes made in the policies of the organization over time. The underlying theory of this case is how organizations have to organize themselves in terms of structures, processes and relationships so that they enable success and adapt to change. This is because of the reason that understanding the strategic position of an organization and considering the strategic choices open to it are of little values unless the preferred strategies are put into action. Arts council underwent changes in terms of their policies and objectives and to implement these changes, there is a need for strategically organizing the structure of the organization. Theoretical relevance: Organizations, while organizing themselves have to look into its coherent configuration which consists of: Organizational Structures: The structure of the organization defines the flow of power, authority and responsibilities. It tells about the relationships between the peers and co-workers. It also explains the span of control and reporting order. Thus the organizational structure is important in order to understand the hierarchy in the organization and to implement the policies and strategies. Different organizational structures like centralized, decentralized, divisional, functional, matrix, etc. have their own importance, advantages and disadvantages. Organizational Processes: Organizational processes tell about the flow of information and work in the organization. It also defines the supervision processes, culture and planning processes. The processes definition is very important to implement the strategies. The planning process is also a tool to implement control systems in the processes. The relevance of the same can be seen in the case of Arts Council. Management of Relationships: Relationship tells us about the internal and external links of the organization. Internally how the organization is linked with its own departments in terms of finance, work flow and information flow. Externally it can be linked with the organizations from where they outsource, network, customers, clients, etc. It is important to understand the relationship structure because the relationship structure explains the decision making authority to certain extent. This case of Arts Council is related to different aspects of organizational structures in which it underwent changes. These structures were coincided with the policies and strategies what arts council followed in different stages of arts development and expansion in England. Structure prior to 1990: Prior to 1990 Arts Council operated as a single organization covering Great Britain. During that period, the objective of Arts Council was only to promote
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Changes made in 1990: it t t t t t t i l li i t C il l t i ti :
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Regi nal arts council: There were 10 regi l boards created which would be streamli ed i operation and responsi e at regional levels. These regional centers were brought at the heart of the funding rather than being independent supplicants to a central body. Independent bodies: The real decision making authorities were delegated at the regional levels and decisions were made at the regional priorities themselves. Arts council got the responsibility for national level events Reporting to the secretary of the state All the regional centers were reporting to : the secretary of their state.
Critical review of the above structure Advantages Focus on regional activities: With this structure, the regional centers can focus on the local activities and talents. This strategy is useful when talents have to be searched through out the country and regional presence is significant in such a case. A self standing unit: This kind of geographical divisional structure is effective because results are clearly visible in terms of regional performance. Each unit is a standing business on its own. In this case the results can be measured in terms of the artists they have funded, the funds they have raised and deployed and events they have organized. Thus there is a spirit of self standing unit and urge to perform better than the other units. This helps in overall achievement of the broader objective of funding artists through out the country. Specialization: When different units are made in an organization, each division makes its specialization in its own field and in its own way. Every region in England is famous for its own arts type. This can help the Arts Council to find out new arts type prevailing in England and the regional units would help in expansion of those artists. Knowledge sharing: The knowledge and strategies used by different units can be shard among each other and thus can help the underperforming units also to improve their performance. Disadvantages Increase in costs: In an organization which is working on public funding, finance is a major constraint. Because of divisionalization, there is increase in costs because of excessive staff requirement. Difficult to create single policy for nation: In a divisionalized structure, it is difficult to follow and implement a single policy. Thus the structure fails when there has to be unity of decision making. The more the number of divisions more will be conflicts. Intense competition: Intense competition between divisions is good to some extent if the business is a profit organization or the divisions are profit centers. But in case of a not for profit organization competition is not good. It leads to cut down in someone else¶s funds in order to increase the funds for their unit. Such organizations should run in mutual understanding and harmony. Duplication: One of the major problems of divisionalization is duplication. At every division there is a need for functional units and staff. Which is a repetition of activities and it leads to increase in costs. Changes in 2003: In order to overcome the problems in the structure existing there were changes made in the structure in the year 2003 again. These changes were made not just to remove the problems in the prevailing structure but also there were changes in the policies and objectives of the Arts Council and the prevailing structure was not able to meet the
requirements for the new policy implementation. Since every structure is suitable for a particular policy, there was a requirement of change in the organizational structure. Reasons for changes Prioritize individual artist: The most important change in the policies of Arts Council in the year 2003 was that they started to focus on individual artists rather arts organizations. They wanted to bring out individual artists in the front and give them an opportunity to showcase their talents the entire world. Helping organizations to thrive rather than survive: Like before, they were not merely willing to fund the arts organizations but also wanted them to flourish and grow so that every artist can benefit out of this. Cultural diversity: Their priority was to being harmony in cultural diversity. All the regions and also out of the country artists were to be brought in England so that art of England could reach maximum people. Their policy was now to give international exposure to the artists.
ACE (15 members) Executive Structure
External Relations RAC 1 (15 Members) RAC 2 (15 Members) RAC 3 (15 Members)
Figure 1: the new organizational structure of Arts Council of England
The new organizational structure: An organization like Arts Council of England which is a government charter organization and works on public funding has a lot of complications in terms of people who organize it. There has to be equal representation of government in the organization, at the same time people who understand arts should be there, also the people who fund the maximum would like a place in the boards. These all issues were tackled in the new structure. The appointment of members and representation was all defined properly and role of regional centers was changed. There was a clear relationship structure and process structure lay in Arts council in order to bring harmony in decision making and to implement the new policy of individual artist funding rather each region following its own policy.
Appointment of members of national council by Secretary of State: The members of national council were appointed by the secretary of state. There were total of 15 members at the national council. Representative of local government: Out of the 15, 9 were the representatives of all local or regional centers. Thus equal representation was shown from local bodies at the center level. Responsibilities of RAC: Regional Arts Councils had the following responsibilities: Annual budgets 3 years regional investment plans Agreement of regional strategies within the framework of national policy This made a clear process for planning in Arts Council that the policies will be framed at the center level and it will flow from top to bottom. The budgets and plans will be framed at the regional levels and will flow from bottom to top. In order to make them frame their policies in line with the policies framed, the policies were approved at the center level only if they were within the framework of the policies laid. Then the flow of finance would happen from top to bottom to all the regional levels. Critical review of new structure One single policy can be formed: Under the new structure a single policy could be formed and implemented throughout the organization. This was because the processes and relationships were clearly defined. Decrease in costs: In the previous structure of divisionalization, there was a lot of repetition in terms of staff and functional area. But in the new structure, as it is seen in the figure above there was one executive structure formed at the national level and which saved a lot of cost by reducing the staff requirement and avoiding duplications. Flow of work: As discussed above, there was a flow of work and responsibilities was made. This led to increase in efficiency of work and reduction in lag time. Sufficient representation: There was sufficient representation of state and government in the arts council. Also there was sufficient representation of local bodies at the national level. In line with the new policies: This structure was clearly inline with the new policies that were adopted by Arts Council. Conclusion: The new structure was very effective in terms of achieving the policies formed by arts council and this could be seen in the figures of their funds raised and deployed. Arts council increased its deployed funds from 335 million pounds to 410 million pounds by the year 2006. There was a great increase in the number of artists participating in events organized by Arts council and the arts of England were showcased throughout the world. There could be alternate structures possible like division based on arts type, but this would limit the scope of arts and artists which Arts council could find in England. Arts have got no meaning. If it is defined we are limiting its scope. By doing this there may be a lot of artists with unique skills got unexplored because they won¶t fall under the purview of the definition of their arts definition for a particular division. Hence the strategies formed at the arts council is a classic case of change in policies and organizing for successful implementation of the same.
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