Background of the study
Substantial organizational change, incorporating new operational and economic models and talent strategies, is needed to realize this goal. However, measures are also required to make symmetry feasible; measureability in organizational structure is crucial. Network structures are an effective way to portray the structure of an organization. This method has been created in the many but connected fields of economics, managerial science, and psychology. First, by helping companies better understand and represent the concerns and beliefs of a wide range of participants, sustainability promotes “human connections.” Secondly, it enhances “collective intelligence” by creating decision-making procedures prioritizing these parties (Rademacher et al. Forum, 2021). Lastly, it fosters “accountability at all stages.” It has been observed that companies with the highest levels of sustainability have better financial performance and more excellent environmental, social, and governance (ESG) performance. Companies with firmly established sustainability approaches to leadership beat competitors by 21 percent in terms of profitability and 21 percent in terms of improved social and environmental results.
Introduction
Sustainability is the core of every business in today’s environment and affects all aspects, including the organizational structure (Nawaz & Koç, 2019). An organizational framework is a collection of procedures that assigns and manages tasks to specific people. Structure impacts every organizational process and is not a method for coordination. Due to its capacity to give companies a competitive edge and generate value for themselves, their constituents, and the community, the sustainability of organizations is currently acquiring the respect and significance it deserves. There are a few concrete components, such as hierarchical structures and groups, near the conclusion of the challenging aspect. These divisions’ and units’ relationships demonstrate the soft elements of the organizational structure.
Organizational structure influences a company’s behavior in two or more ways through sustainability. Initially, business-wide performance metrics like predictability and the rate at which productivity-boosting technologies are adopted can be impacted by organizational structure. These traits of performance then affect conduct since they either find their way into the strategies and computations or companies are subject to different pressures from competitive selection based on how well they perform. Furthermore, modifications to the outside environment, such as the economic or social climate, may result in dynamic alterations to the company’s internal interaction and connection practices. This paper will discuss the following aspects of how sustainability affects organizational structure: departmental cross-functional, business personnel to integrate sustainability in departments, honesty and engagement of stakeholders, performance assessment with the integration of sustainability aspects, suppliers’ relations, and management of supply chains with sustainability considerations and management of risks using sustainability.
Purpose of the study
This study aims to understand the organizational structure’s relationship with suppliers, stakeholders, performance, departments, risks, and sustainability. One of the most critical processes for empowering companies to work together and address sustainability is knowledge. Firstly, this study with procedures like candid discussion, introspection, developing common objectives and visions, and cultivating trusting settings helps varied actors work together more successfully. Secondly, gaining sustainability knowledge is essential to implementing more sustainable aspects and raising the consciousness of other urgent sustainability concerns that a company’s organizational structure may influence.
Hypotheses to be tested
H1: Integration of sustainability aspects in the organizational structure of a business affects its operations.
H2: Incorporating sustainability in an organization’s organizational structure does not affect its operations.
Importance of the study
First, it will enable companies to revise their promotions qualification, set new and tightened performance assessment techniques, improve decision-making for the performance evaluation, and set new work descriptions with alignment to the sustainability aspects, which also alignment with the objectives of the organizations, thus making it achieve its goals. Many efforts are voluntary, and businesses have started creating and utilizing sustainability metrics. Metrics of a company’s overall success, such as revenue or the rate at which productivity-boosting technologies are adopted, can be impacted by its structure (DeCanio et al., 2000). As a consequence, businesses all over the globe have realized that they must adapt to the issue of sustainable growth, and several have even shifted their focus to product creation (Nappi & Rozenfeld, 2015). The necessity to evaluate the efficacy of a good arose from the growing trend of incorporating sustainability into all stages of its life cycle.
Moreover, organizations will be able to involve all participants, including clients, workers, investors, and societies. The engagement involves the adoption of feedback, reporting, and consultation services for stakeholders’ administration structure changes. Sustainability matters will also involve committees and discussions for external and internal areas.
Additionally, organizations will benefit from integrating sustainability in departments with operating persons overseeing sustainability issues. Finance, marketing, and operational departments cooperate to ensure sustainability is intended for decision-making and adherence to the organization’s set objectives. The departments with “specific environmentally pertinent expertise to identify, act upon, and convey to other sections of the business” are not found in corporations that follow standard organizational design concepts.
A chain of supply that incorporates environmental and social factors and metrics for profit and loss is considered sustainable.
The term “triple bottom line” refers to this notion of financial, interpersonal, and ecological success (Blackhurst et al., 2021). Businesses engage in initiatives including risk identification, assessment, and capacity building for vendors regarding sustainability to guarantee that suppliers adhere to environmental practices. Over time, these initiatives help vendors create knowledge and refine sustainable aspects, which eventually enable them to come up with high-quality products that promptly satisfy every legal criteria (Gouda & Saranga, 2018).
Adherence to legal obligations – Laws and corporate sustainable development goals (SDGs) will keep growing in scope. As these new regulations come into effect, stay far ahead of the competition by putting environmentally friendly choices into place as soon as possible. You should also continuously monitor the standard, record, and communicate your sustainability performance.
Definition of terms
Sustainability – Sustainability is the ability to continue a procedure for an extended time. Business sustainability business policy scenarios purposes to keep “physical and natural assets” from getting outdone so that can be utilized for many years.
Organizational structure – The organizational framework is the organizational framework of relationships on tasks, systems, working procedures, and people in teams attempting to accomplish objectives (Ahmady et al., 2016). A system of organization is a collection of procedures that assign and manage tasks to specific people.
Limitations of the study
The following are some of the limitations of the study:
Inadequate previous papers on the topic
Data collection methodologies implementation plan
Constraints regarding sample size for the data
Financial constraints
Time limitations make it difficult to do the research adequately.
Summary and organization of the study
The research will discuss the impacts of sustainability on the organizational structure of organizations. In terms of organizational structure, sustainability is essential. Departmental cross-functional business personnel to integrate sustainability in departments, honesty and engagement of stakeholders, performance assessment with the integration of sustainability aspects, suppliers’ relations, and management of supply chains are the main points. Finally, limitations include time, finances, sample size constraints, and inadequate research. The study will be well-structured, with stipulated dates for each activity and the required finances. This will ensure that time is effectively utilized to develop and conclude the hypotheses.
References
Ahmady, G. A., Mehrpour, M., & Nikooravesh, A. (2016). Organizational structure. Procedia-Social and Behavioral Sciences, 230, 455-462. https://www.sciencedirect.com/science/article/pii/S1877042816311582/pdf?md5=cfb0fa36a53a3e28da06ac53b79b48ff&pid=1-s2.0-S1877042816311582-main.pdf
Blackhurst, J., Cantor, D., & O’Donnell, M. (2021). Sustainable Supply Chains: A Guide for Small–to Medium-sized Manufacturers, 2012.[Электронный ресурс]: https://www. hbs. edu/faculty/conferences/2015-strategy-research/Documents/Sustainable% 20Supply% 20Chains. pdf.
DeCanio, S. J., Dibble, C., & Amir-Atefi, K. (2000). The importance of organizational structure for adopting innovations. Management Science, 46(10), 1285–1299. https://www.researchgate.net/profile/Stephen-Decanio/publication/227447261_The_Importance_of_Organizational_Structure_for_the_Adoption_of_Innovations/links/0912f50f5adad4b22a000000/The-Importance-of-Organizational-Structure-for-the-Adoption-of-Innovations.pdf
Gouda, S. K., & Saranga, H. (2018). Sustainable supply chains for supply chain sustainability: impact of sustainability efforts on supply chain risk. International Journal of Production Research, 56(17), 5820-5835. https://www.researchgate.net/profile/Haritha-Saranga/publication/324346171_Sustainable_supply_chains_for_supply_chain_sustainability_impact_of_sustainability_efforts_on_supply_chain_risk/links/5ad2d77da6fdcc29357e3227/Sustainable-supply-chains-for-supply-chain-sustainability-impact-of-sustainability-efforts-on-supply-chain-risk.pdf
Nappi, V., & Rozenfeld, H. (2015). The incorporation of sustainability indicators into a performance measurement system. Procedia CIRP, 26, 7-12. https://www.sciencedirect.com/science/article/pii/S2212827114009275/pdf?md5=6fdaca83196bea7be889b7e6c30bed20&pid=1-s2.0-S2212827114009275-main.pdf&_valck=1
Nawaz, W., & Koç, M. (2019). I am exploring organizational sustainability: Themes, functional areas, and best practices: sustainability, 11(16), 4307. https://www.mdpi.com/2071-1050/11/16/4307/pdf
Rademacher, J., Suntook, C., & World Economic Forum. (2021, September 21). How responsible leaders can create sustainable organizations that deliver value and impact for all stakeholders. World Economic Forum. https://www.weforum.org/agenda/2021/09/how-responsible-leaders-can-create-sustainable-organizations-that-deliver-value-and-impact-for-all-stakeholders
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