Running Head: MANGERIAL REORGANIZATION 1

Managerial Reorganization Structure and Budget Allotments

LeeAnne Neilson

Emporia State University

MANGERIAL REORGANIZATION 2

Abstract

This paper will address the restructuring of the Arrakis County Library System due to internal

and external factors necessitating change in order to create a stronger organization that functions

more efficiently. New mission, value, and vision statements were created to help library staff

embrace change. A narrative is provided of the current structural organization along with SWOT

and PEST analyses in order to understand why changes are needed. The structural

reorganization plan along with a chart illustrating the new 15% budget reduction and ways of

implementing these changes will be discussed. A Gantt chart was created as a project

management tool for monitoring the progress of each step and charting completed tasks.

Keywords: library, organization, evaluation, budget

MANGERIAL REORGANIZATION 3

Managerial Reorganization Structure and Budget Allotments

Mission Statement

The mission of the Arrakis County Library System is to promote lifelong literacy and

learning through accessible resources, enhanced technology, and addressing the informational

needs of the citizens of the county. Our aim is to make the library a welcoming environment by

celebrating diversity and offering programs to meet the needs of the population as a means of

creating a healthy community.

Vision Statement

The Arrakis County Library System will expand our horizons by embracing change

leading to a glorious future. We will create a physical and virtual environment conducive to

ongoing learning and cultivating literacy within our community. Diversity will be respected and

interactions with patrons conducted in a professional manner.

Value Statements

The Arrakis County Library System is devoted to the following values:

 Learning: We value continual learning for both patrons and employees.

 Progression: Our environment is dynamic and we will embrace change.

 Diversity: Cultural diversity will be celebrated and discrimination will not be tolerated.

 Intellectual freedom: Our collection will encompass the values of the community.

 Service: We will strive to excel in providing quality service.

Narrative Overview of Current Environment

I am the Arrakis County Library Director of four branches. The total population within

the county is about 275,000, with the largest group of residents ranging between 25 and 44 years

old and the median age of 33. Currently, 23% of the populace is under the age of 18. The
MANGERIAL REORGANIZATION 4

population is diverse, with 47% being classified as White, 21% African American, 11% Latino

(which is growing), and 9% Asian/Pacific American. The community is mostly working class,

and about 28% of the population falls below the poverty level. Within the county are three

higher educational institutions (a technical college, Barony University, and College of Shaddam)

serving a combined student body of 39,000.

Arrakis County borders a metropolitan statistical area consisting of about 2.1 million

people and many residents of the community commute to nearby cities for employment. The

Stilgar Branch Library in the southern portion of the county is a few miles away from the

Interstate Highway and serves urban and rural residents. On the north side of the county is the

Ghanima Branch Library. This geographical area is rural and mountainous and some areas

become less accessible as the elevation increases. The city of Ghanima is comprised of

retirement communities and vacation resorts.

The main library is located in Arrakeen and serves as the administrative headquarters for

the county library system. This library’s layout includes a children’s room, a local history room,

conference rooms, and room for expansion. The Barony/Shaddam Regional Branch is the

primary public library for college students attending Barony University and the College of

Shaddam and is equipped with a large meeting room and many individual study rooms. For the

residents of the county, this is the largest library branch and geographically accessible to

residents in the area.

After one year of being director, I now face the overwhelming task of revising the

organizational structure of all four libraries and reducing the budget by 15% due to a projected

decrease in tax revenues earmarked for the county library system after a major spice production
MANGERIAL REORGANIZATION 5

plant relocates to another state. This will require eliminating some positions, changing job

responsibilities, evaluating salaries, and reducing budget allotments.

My first step in this process was to analyze each employee’s strengths, weaknesses, and

capabilities. I discovered some staff members had become complacent or hostile to change.

There was a high turnover rate within the entry-level professional positions because the current

system is resistant to change and static. Careful consideration was given to creating new

mission, vision, and value statements in an effort to increase unity and professionalism.

Recognizing that regular evaluations had not occurred in the previous administration and that

promotions had been based on favoritism, plans will also include yearly evaluations and properly

using rewards power.

In order to identify and address strengths, weaknesses, opportunities, and threats to the

current library organization, I conducted a SWOT analysis. This helped me identify current

aspects that were working well and needed to be preserved, along with determining variables that

needed to be eliminated. This chart was extremely helpful in creating new goals for the

organization as we begin expanding our horizon by embracing change to a glorious future.

Realizing that both internal and external factors needed to be taken into consideration

before creating a new organizational structure, I also performed a PEST analysis. This diagram

provided me with an external glimpse of the political, economic, sociological, and technological

factors impacting the current library system. Upon completing this task, it became evident that

we will be serving a growing Latino population, revenue will be decreased, and that outreach

programming needs to be strengthened. Also of importance is the socioeconomic factor that

several retirement communities exist within the county and are potential untapped resources.
MANGERIAL REORGANIZATION
SWOT Analysis
Strengths
 Sanders is dedicated and a good
performer.
 Johnson desires more responsibility and
wants to be more integrated into the
library culture.
 The county system has four locations.
 Technological resources are available
in three higher educational institutions
in the community, thus computers are
not mobilized in the county system by
college students.
Opportunities
 The county library system has room for
growth.
 Library programs can be enhanced to
meet diversity needs of the community.
 We can utilize retired citizens as
volunteers and mentors.
 College students can be used as digital
inclusion volunteers.
 I am a new director and have fresh
ideas.
 Restructuring job positions will
increase harmony and unity in the
workplace.
 A potential exists for improving
marketing and promotion of library
programs.
 Partner with local food banks to
distribute meals to children.
6
Weaknesses
 Employees are slow to embrace change.
 Dewey is a bully.
 Hawat does not do his job.
 Yearly evaluations do not happen.
 An attitude of complacency exists
within some employees.
 Past favoritism has created disunity
among staff members.
Threats
 A predicted 15% budget cut.
 The decreasing white population and
rising Latino populace will impact
library services, collection materials,
and programming.
 Firing and hiring will personally impact
the staff.
 A lack of referent power being
employed by the previous director has
contributed to a fear of sharing
innovation ideas from employees.
MANGERIAL REORGANIZATION
PEST Analysis
Political
 Library board
 Laws regulating benefits for part-time
and full-time staff
 Copyright regulations
Social
 Rural and urban population
 Even ratio between male and female
 47% White and decreasing
 21 % African American
 11% Latino and growing
 College students, working class,
families, retirees, tourists
7
Economic
 Spice plant closing and loss of jobs
 Predicted decrease in county tax
revenue for next fiscal year
 $23,000 per capita income
 $40,000 median household income
 $54,000 median family income
 28 % of total population under poverty
and 16% include families
 245 people per square mile
 Bedroom community to larger cities
nearby
Technological
 Databases
 Firewall protections
 Adequate number of computers for
patrons
 Technology obsolescence
MANGERIAL REORGANIZATION 8

Plan to Improve Organizational Culture

One way to promote the new county’s value statements is to complete yearly

performance appraisals. In the past, evaluations were neglected. This resulted in a misuse of

legitimate and reward powers. Effective evaluations can result in goal setting, boosting morale,

addressing negative behavior, rewarding good work ethics, and protecting the library

organization against lawsuits.

The type of evaluation I would implement is the 360-degree appraisal because it includes

a variety of sources and provides a well-rounded evaluation of an employee. These evaluations

will help to eliminate bias and provide documentation on staff members’ work performance.

During this evaluation, I would focus on a particular strength the staff member possesses and

how that contributes to the overall success of the library organization. This approach drives

away fear and supports one of W. Edward Deming’s points relating to effective leadership. He

believed that “security, not fear, will help facilitate quality work” (Hussey, 2013, p. 45).

Another management theorist, Elton Mayo, discovered while working on the Hawthorne

studies that “by lavishing attention on the workers, . . . formerly indifferent employees had

coalesced into congenial, cohesive groups with a great deal of collective pride [and] helped

fulfill the workers’ desire for affiliation, competency, and achievement, whereupon their

productivity increased” (Maron, Stueart, & Morner, 2013, p. 30). I feel these evaluations will

help reinforce this concept and provide fertile ground for referent power to flourish.

Another issue that will be addressed is complacency and resistance to change among

some staff members. The very process of restructuring will result in a change of job duties and

titles for some to better match their skill sets and knowledge with the right job. This move will
MANGERIAL REORGANIZATION 9

stimulate professional growth and job satisfaction. Our new structural organization will benefit

the patrons.

With the shift in some job positions, all staff members will be encouraged to be

innovative thinkers and share their ideas for improvements within the system. Funds will be

earmarked for staff to participate in continuing education programs. Department managers will

be directed to collaborate with one another on projects and issues as a means of accessing

available resources and making the organization function more efficiently.

Legitimate and coercive powers will come into play as I fire Dewey, Hawat, and Bush.

Legitimate power would be utilized as I and managers hire individuals to fill vacant positions.

My coercive power will take effect as I address negative behaviors and work with staff members

to eliminate such actions. Although chastisement is often seen as negative, I will use it to

promote growth and improvement within our organization. I kept the majority of the staff

because they have expert knowledge in their respective fields. For instance, Atreides became

outreach coordinator because he has the ability to think outside the box, which is useful in

planning appropriate programs for library patrons. Franklin is an excellent example of

possessing expert power and is greatly admired by his coworkers due to his willingness to

mentor new employees.

The Budget

In the original organization structure, all employees had full-time status and benefits.

This was no longer cost efficient due to the necessary 15% budget cut. I made all of the tech and

clerk positions part-time. Reducing the number of full-time employees and increasing the

number of part-time positions resulted in a standardization of wages for certain library positions
MANGERIAL REORGANIZATION 10

and reduced the employee benefit cost by $15,000 per each full-time position that became a part-

time position.

My initial thought was to reduce the budget in all categories so that the effects of the

budget cut were evenly distributed, but upon further deliberation I analyzed the community

dynamics and made my decision based upon those needs. The budget for printed books was

reduced by 5% because the collection is fairly large and I felt a 5% reduction would not impact

this category in a detrimental way. Marketing and promotion will promote our collection sharing

capability between the four branches. Printed serials received a large decrease in its budget due

to a history audit revealing low circulation and unnecessary genre duplications.

The audio and video materials budget was cut by 10% due to a societal trend of

households subscribing to Netflix and thus allowing us to purchase fewer DVDs and still

meeting the demands of the community. In addition, the library has contracts with services such

as Freegal that allows patrons with library cards to download free music. Marketing will be

asked to promote this service. To stretch our funds, we would save the scratched DVDs and CDs

for art projects.

EBooks were reduced by $5,000 because 28% of the county’s population is below

poverty level and the assumption is that many of these patrons probably do not own an electronic

device designed to read eBooks. A line graph was completed to visualize e-books circulation

over a five-year time span in order to determine how well this format is being utilized by the

patrons in the community. Upon completing a circulation audit, the physical book version was

circulated more frequently than the electronic version. The results demonstrated that circulation

is slowly increasing but has many plateaus. Thus, I felt justified in the $5,000 budget cut for this

category.
MANGERIAL REORGANIZATION 11

Databases were reduced by 10% because most of our patrons were not utilizing the many

scholarly resources we were subscribing to. It is felt that this decision will not jeopardize a

college student’s success because he can still have access to academic sources through the library

campus.

The staff continuing education budget was reduced by 10%. The practice of serving food

for the meetings will be eliminated as a means of more efficiently using the allocated funds.

Focus will be given to carefully selecting more cost effective methods of sending staff members

to library conferences.

Organization Structure

The former library organization structure was a vertical structure. I chose to keep this

style of organization because the Arrakis County Library system serves approximately 275,000

individuals versus a flat organization structure which is beneficial to small companies that have
MANGERIAL REORGANIZATION 12

less than 25 employees. A couple of changes were made in the second tier level. The two

technology departments got morphed into one to create a stronger unit. In an attempt to more

fully utilize the capacities of the business branch, the outreach coordinator will now report to the

business manager.

Dewey was fired because he abused his power of authority. He used his coercive power

to demote or fire individuals he disliked, which is not professional. His actions did not create a

safe environment nor build unity among staff. Hawat was terminated because of continual

tardiness, failure to work his shifts, and a lack of significant focus on his work duties.

The Barony/Shaddam Branch is a large library branch and needs a dynamic, strong, and visible

leader; Hawat no longer was demonstrating that type of leadership. The last person I fired was

Bush because of her lack of contribution to the necessary demands of being the board secretary.

After contemplating how to adjust the organization structure, my final decision came

about after matching strengths with job responsibilities. Management theorist Mary Parker

Follett viewed employees as the heart of any company and encouraged managers to give more

responsibility to workers, not less. Heeding Follett’s advice, I chose to give Johnson more

responsibility and made her head of the technology department. I have great faith in her

capabilities because of her previous work ethic.

Sanders remained in his position as public services manager, but I did have a personal

conference with him to address his fears and provide positive feedback concerning his job

performance. In our meeting, I told Sanders that he is a valuable employee because of his

dedication and expertise. We discussed the restructuring and how he will be an excellent mentor

to the three managers under his jurisdiction with new job responsibilities.
MANGERIAL REORGANIZATION 13

I chose to fill the vacancy resulting in the termination of Dewey by promoting Yueh to

the job of business manager. His eleven years of experience as a small branch manager, caring

nature, and managerial competency qualifies him for the position.

I decided to combine the systems and technical services departments. Johnson was

chosen to be the manager of this new department since Harkonnen had not been embracing new

technology. Technology is always changing and this department needs a leader who is familiar

with this field and has a vision. With this change, it was stressed to Johnson that her new

responsibilities take precedence over helping coworkers solve problems that are not managerial

related.

Atriedes will replace Carnegie as the outreach coordinator. Carnegie was lacking the

vision of possible ways to expand the outreach program and too closed-minded. Atriedes was

chosen for this position because of his ability to think outside of the box. This structural change

also addresses the existing conflict between Atriedes and Sanders, as Atriedes will no longer

report to Sanders and will work closely with Yueh, the business manager, in developing outreach

programs.

Restructuring can often lead to many changes and there was now a vacancy in the

reference supervisor position. Grimm was chosen to fill this position because he is currently

working on his master’s degree in library science and desires to become an adult librarian. The

lack of a master’s degree prohibits his eligibility to be offered a librarian position, but the change

to reference supervisor will allow him to retain full-time status and gain new skills and does not

require a master’s degree.

MANGERIAL REORGANIZATION 14

Carnegie was moved to fill the Ghanima Branch Manager position. He is capable of

making managerial decisions, interpreting policies, and supervising employees. This branch

serves the retirement community and is probably a good fit for Carnegie.

Harkonnen’s new position is to manage the Barony/Shaddam Library. He has

demonstrated great capabilities to manage people and programs, but his weakness lies in readily

understanding the complexities of the rapidly changing technology field. As a branch manager,

he will not be responsible for creating technological upgrades but will have the support of the

county’s technology department for all technological related issues.

I chose to make all tech positions part-time but wanted Walden to retain her full-time

status. Thus, I have appointed her as my new board secretary because she has outstanding

customer services skills and I believe she will be capable of handling board related tasks.

In addition to firing three individuals and making adjustments to the organizational

structure, I created six new tech slots, four clerk jobs, and three librarian positions. These

modifications were necessary to reduce the financial costs associated with full-time status and to

keep the library functioning satisfactorily. Knowing Kennedy desired a change in job duties, I

transferred her to the Ghanima Branch as the new reference librarian. Since she lives near the

retirement community, I believe she will be an asset in this position due to her understanding of

the dynamics of the community.

On the following page is the new organizational chart containing information about each

library branch. Full-time positions include a staff member’s name and job title. All tech and

clerk positions are part-time. Red outlines indicate vacant positions.

MANGERIAL REORGANIZATION 15
MANGERIAL REORGANIZATION 16

Gantt Chart

In order to successfully complete the task of reorganization and reducing the budget by

15%, a Gantt chart will be created as a project management tool for monitoring the progress of

each step and charting completed tasks.

MANGERIAL REORGANIZATION 17

References

Hussey, L. K. (2013). “Modern Theory.” In D. Velasquez (Ed.), Library management 101: A

practical guide (pp. 29-51). Chicago, IL: American Library Association.

Moran, B. B., Stueart, R. D., & Morner, C. J. (2013). Library and information center

management (8th ed.). Santa Barbara, California: Libraries Unlimited.