Strategies for Organizational Structure

Strategies for organisational twist1.1 organisational StructureOrganizational Structure is the strategic manner by which arrangings fix up (or rearrange) themselves (Galbraith, 1973). This is essentially important in de landmarkining how boldnesss plan on utilizing their resources , curiously their human resources. To do so high-octanely, current questions posit to involve precise answers much(prenominal) as the specific responsibilities of each angiotensin converting enzyme(a) at bottom the judicature, to whom on the button they report and most importantly the coordination process that is to be enforced to rent together all these mass and processes simultaneously.Bearing in mind that each frame lam followed needs to be consistent with the organizations main objectives, a buckram channel defining the lines of authority from top to bottom (i.e. Hierarchy of Authority) is naturalized which identifies clearly who is responsible for which personnel and/or tasks (Per row, 1986). Traditionally, the authority of decision- do has been a modify process (i.e. directed to higher- direct trouble), but with increase challenges first appearance in novel times, many organizations now encourage a decentralized decision devising model which moots its members the authority to control decisions without the need to consult their superiors. This has the advantage of producing a real-time response to problems by people who ar specialized in that process opus at the resembling time giving employees certain autonomy which creates a sense of job satisfaction and motivation. However this could malarkey to the undermining of upper counsel if non tackled properly. at that place exist 2 primary election dimensions to organisational structureThe Vertical Dimension relates to the hierarchy within a company by distinguishing the decision makers and people in charge. such organizations atomic number 18 considered to admit either a tall or a monotonic structure (See Fig.1 in Appendix A). It intromits the Span of controller of these individuals, which look ups to the topic of people they are responsible for and in effect, those groups who report to a unmarried passenger vehicle (these differ in quantity shankd on the nature of the work, skill-sets available, organisational culture, management style and level of Formalization, i.e. documentation of processes, rules and regulations (Noshria, 1991). Due to the high number or levels found in a Tall Structure ( burn down exceed twelve), managers tend to have a Narrow Span of Control where solely 5 or 6 people report to any single executive program. The converse holds for Flat Structures which have a Wide Span of Control where up to 10 to 12 people could be reporting to a single manager, depending on the tasks involved. In short, the taller the structure, the more than the Span of Control decreases.The crosswise Dimension addresses the division and assignment of tasks and func tions across various departments within the organization. such organizations are considered to be either wide or narrow.The structure that an organization adopts for itself is contingent upon a number of conditions like its products and services, the configuration of customer base it caters to, the business strategy it employs and the management of several(predicate) departments processes. The most common land organizational types can be assort as follows (Fontaine, 2007)The Functional Structure which is more in line with the Vertical Dimension is perhaps the most common structure in the business world due to its simplicity and ease. By this structure, organizations set up themselves into different departments with similar skill-sets, managed by several(prenominal) hotshot who is an complete in that trade. (See Fig.2 in Appendix A) (Ouchi Dowling, 1974)The Divisional Structure is more concerned with utilizing people with similar abilities across the entire business, wher ever the need whitethorn be. Thus such a structure lies within the Horizontal Dimension. Such divisions may be based on different product lines, consumer markets and heretofore up geographical markets. (See Fig.3 in Appendix A)The Matrix Structure is an incorporation of both Functional and Divisional Structures, although interestingly, it operates like neither. The foundation of this structure is still running(a) however different invents would require the pooling of these human resources from the various departments to serve their purpose. The excogitate managers borrow their staff who are then involved in the project from start to finish. This is sometimes a challenge as there is a limited number of staff in each department and each project would have its own specific needs. However it is the most efficient of all organizational structures. (See Fig.4 in Appendix A) (Davis Lawrence, 1977)The Horizontally Linked Structure is a relatively new concept whereby an organization gr oups its people along the value chain of activities and processes that produce, market, deliver, and service the firms offerings (Spector, 2007). (See Fig.5 in Appendix A)1.2 Organizational acculturation market-gardening is a complex yet powerful force familiarise in any organization that en clutcheses its workers values, smells, attitudes, fashion and shared assumptions. It is the moral compass that guides individuals in their actions at an unconscious level in all aspects of its congenital and outside dealinghips. Organizational Culture can be identified by 4 basic types (Cameron Quinn, 1999) (See Fig.6 in Appendix A)Collaborative (Clan) Culture This sort of culture is characterized by its open and friendly environment where people actually invest a lot of themselves in the work they do. A family transcription is at play where managers play parental and/or mentor figures. There is a commodious deal of focus on group coordination consensus, and the organizations belief is that its greatest assets are its workers. occasion (Adhocracy) Culture Entrepreneur and Innovative skills are highly valued in this culture with focus on individual initiative and freedom. The organization thrives by being market leader by continually introducing new products or services , hence their stress upon risk-taking measures and experimentation as a unifying quality. Long-term strategies focus on proceeds and acquiring new resources.Control (Hierarchy) Culture Behavior is governed by a strict set of rules and policies in this setting. Formal structures intend on maintaining settlement and low cost of their product with workers being commended on their performance, power and consistency. leading are required to be efficiency-conscious with ultimate remnants of security and predictability.Compete (Market) Culture This culture is perhaps the most cut-throat of all with worker rivalrousness and goal oriented. Leaders need to be demanding, active and most importantly ro bust with the common unifying goal of success. The organization is in a never-ending battle to increase market share and penetration by providing competitive pricing and holding the position of market leader. Long-term focus is on achieving measurable goals and targets, and building a strong reputation.It is important to understand that no adept culture is wagerer than the other. Each culture plays a diminutive role in an organizations success so long as it is in sync with the organizations goals. Recent studies conducted have shown that even within a single organization, there may exist multiple cultures (sub-cultures) besides the dominating one which once again should not be construed as a b missball element. In fact many scholars believe the existence of sub-cultures to be a source of healthy competition and the driving force fag end innovation within the indus give. The sagacity of organizational cultures is equally important for managers and owners not solely to be aware of their employees needs but also in scheming a workplace that complements such a culture.1.3 Effects on transmission lineThe relationship among Organizational Structure and Culture is one that is not clearly distinguishable. In general, the structure is designed to exist within a particular culture , in effect, aiding the culture to run with the consistency and efficiency that would be the sign of a successful brass. Thus, organizational structure is originally concerned with the apparatus of the culture. Traditionally, certain cultures have been associated with certain structures and each of these setups have their benefits and disadvantages.Functional Structure + Control Culture Since centralized decision devising is prevalent here, top-management is in control of most aspects of the business. This could be beneficial if the management is highly skilled and there isnt as much competence on the lower levels of the business but could be equally disastrous if such skills are in short supply in management. As a bonus, employees have the opportwholey to learn a great deal from their seniors which could military service in their career paths to take on decision making positions. Since this setup fosters stability and efficiency, there is disclose collaboration with similar processes per group while making use of the economies of scale. The biggest disadvantage here is of lack of communication not only in the midst of the different levels of the hierarchy but also between the different departments , leading to serious conflicts. This in turn affects each individuals antecedence on goals which tend to be more department-focused than that of the organization as a whole. Customers are usually also affected by such systems where they are passed on from department to department regarding issues they might have.Divisional Structure + Create Culture Since the structure is one which brings together different departments and the culture one in which individuals are encouraged to think innovatively, the result is a well-functioning unit with greater opportunities to learn about the different aspects of the business. In addition to better response time to customers issues due to greater accountability, the wider span of control helps in developing managerial and executive skills. The disadvantage here is of a great deal of duplication of tasks because of the different units with all departments in it performing the same function. This also spells out a reduction in specialization as well as a great deal of in-house competition between the different divisions of the business.Matrix Structure + Compete Culture The efficiency of this model is extremely high due to the continuous utilization of highly skilled personnel from different departments on different projects. Since these sorts of projects depend on a vast amount of expert knowledge, individuals often have the authority to make critical decisions which also exposes others to a great am ount of learning say-so, even in scopes of fields beyond their own. Also departmental conflict is reduce due to the regular re-shuffling between projects , rather the competition is between different teams. Unfortunately it is because of these same hasty groupings that employees can tend to get foreclose and confused about their new functions and who they now report to. Also a great deal of time is wasted in meetings to decide on the allocation of these valuable human resources.The above examples were just a few of many forms of different structures and cultures combined. It is important to note that for the specific needs of a particular business, some forms of combination of any 2 factors could serve them better than if the same set-up were used elsewhere. Numerous factors need to be taken into consideration before a decision is reached on which option is to be implemented , and it may also require the trial-testing of the different combinations practically before anything conc lusive can be said in that regard.1.4 Individual BehaviorThe term Organizational Behavior actually relates to the collective dominant behaviors of individuals within an organization. As such positive individual behavior would have the potential to do the pursuance in an organization (See Fig.7 in Appendix A). The factors which distinguish a happy satisfied employee from a disgruntled unmotivated employee are highlighted in the MARS Model of Individual Behavior (McShane Von Glinow, 2008) which identifies 4 elements effecting employee performance Motivation, Ability, use Perception and Situational Forces (See Fig.8 in Appendix A)Motivation is the set of internal captures behind an employees voluntary actions. In the workplace Maslows hierarchy of needs describe the basics that serve such actions (Maslow, 1954) take 1 Physical the need for air, water, food for thought exercise, rest, freedom from diseases disabilitiesLevel 2 Security the need for job security, guard working cond itions and overall stabilityLevel 3 Social the need for being loved, a sense of belonging, inclusion and workplace camaraderieLevel 4 Esteem the need for recognition, prestige and promotionLevel 5 Self-Actualization The need for autonomy, development and creativityAn employees Ability are the natural aptitudes and learn capabilities that are required to successfully complete a task. This requires proper analysis of a persons core competencies and then matching them with the withdraw job.Role Perceptions refer to the beliefs held about what behavior is required to achieve the end results which include an understanding of what tasks need to be performed, their relative importance and preferred behaviors to accomplish them.Situational Factors compensate the environmental conditionals beyond an individuals short-term control that constrain or assuage behaviors such as time, people, budget and work facilities.Types of Behavior in OrganizationsA significantly important aspect influen cing organizational behavior is a persons reputation. Personality can be described as a set of feelings and behaviors that have been significantly formed by genetic and environmental factors and that explain a persons behavioral tendencies. Some major forces influencing personality include cultural and genic forces, family relationships and tender class. These factors along with others, contribute towards the 5 big personality dimensionsnakedness to Experience Sensitive, FlexibleConscientiousness Careful, DependableExtroversion Outgoing, Talkative agreeableness Courteous, CaringNeuroticism Anxious, HostileThe importance of the study of different behavioral patterns is essential in unleashing the potential of any organization by unleashing the potential of all individuals who work therein. The Locus of Control determines the degree towards which individuals believe their behaviors influence what happens to them. Whereas Internals believe in their efforts and abilities Extern als believe events are mainly due to external causes. It is the presence of such personalities spread throughout an organization which deems necessary appropriate maneuvers to maintain positive behavior in as many of its employees as possible. In addition to the benefits already discussed brought about by such behavior to organizations, an equally important aspect is that of self-efficacy and motivation. The ability to adapt ones behavior to a effrontery situation is not only an important learning instrument but a vital quality to have in your self-denial in order to cope with the different cultures that now exist within organizations, while retaining ones unique identity. Furthermore the visualization of reactions to constraints posed to oneself might give them a clearer idea of the reactions of others to the same situation and possible tactics to speak it better.1.5 Organizational speculationOrganizational theories can be broadly categorise as followsClassical Organizational Theory deals with formal organization and its concepts to ameliorate upon management efficiency.i) Taylors Scientific Management Approach (1947) This shape up focused on achieving efficiency, standardization, specialization and simplification brought about by the planning of work. It also dysphoric on mutual respect between management workers to increase productiveness by implementing measures to reduce physical emotional stress of workers, providing them with appropriate bringing up to develop their capabilities and by eliminating the traditional boss concept. Taylor suggested 4 principles of scientific management for improved productivity An employees work should be tackled in a scientific methodology, rather than by a rule-of-thumb. Hiring of members should be based on some analysis who are then trained, taught and developed. Management should apply a policy of cooperation rather than conflict with labors to achieve goals. Training of workers be carried out by experts us ing scientific methods.ii) Webers Bureaucratic Approach (1947) This approach took into consideration the organization as a segment of broader society, but was criticized for its rigidness, impersonality, unfeasible to bigger objectives and lack of initiative to improve status (Hicks and Gullett, 1975). The basis of the approach was on the following principles Existence of hierarchy system with clear amounts of responsibility and authority delimitate for each position. Rules and Regulations should govern the behavior of organizations to maintain predictability and stability. Hiring and selection of employees should be impartial. Designations and not people should be delegated responsibility and authority to maintain democracy.iii) Fayols Administrative Theory (1949) This theory relates to the accomplishment of tasks and touches on management principles functions and concepts of line, staff committees. Productivity of technical and managerial work can be improved by dividing and/or specialization of the work. Authority and due responsibility are essential in achieving organizational objectives. Being answerable to and taking orders from a single supervisor would be most efficient in unity of command. All members of the organization should have a common goal to provide them with direction. Organizations interests should be given priority over individual and/or group interests. Measures to retain employees by several methods (e.g. time incentives, bonuses, profit-sharing, etc.) Management should utilize a blended system of both centralized decentralized decision making. Members on the same level of hierarchy should work together to accomplish work (Scalar chain). The organization should try to establish equity, fairness and justice. Employees should be given time to settle into their work and be assured of the security of their jobs. Members should be encouraged to show initiative. Measures to confirm unity and allegiance should be practiced which would yield better performance. construct of line and staff holds equally as important in organizations as anywhere else. Members from different departments at same hierarchal level can form committees around common goals. Functions of management include planning, organizing, training, commanding and arrange functions (Fayol, 1949) as well as staffing, directing, reporting and budgeting (Gulick Urwick, 1937).Neoclassical Theory bemuse light upon the importance of individual group behavior and good social relations between all hierarchal levels to improve productivity as a result of high-morale brought about by such measures (Roethlisberger and Dickson, 1943). The neoclassical approach was based on the following principles All members of an organization should be toughened with the respect that a human deserves rather than be classified as a tool and as such requires fulfillment beyond stinting and security factors. The approach highlighted informal groups at work within the formal organiz ation and its importance. Workers should be allowed opportunities in decision making processes that would allow for a new and more effective form of management besides increasing productivity.Modern Theories define an organization as a designed and coordinate process in which individuals interact for objectives (Hicks and Gullet, 1975). The theories can be broadly classified as followsi) The Systems Approach This takes on the view that organizations are composed of systems and sub-systems which are mutually certified on each other and may be composed of some components, functions and processes (Albrecht, 1983). So the organization has 3 basic elements (Bakke, 1959)1. Components that include the individual, formal and informal organization, patterns of behavior emerging from role demands of the organization, role comprehension of the individual, and the physical environment in which individuals work.2. Linking processes like communication, balance and decision making between the d ifferent components to operate in an organized and correlated manner.3. Organizational Goals like growth, stability and interaction between all members of the organization.ii) Socio-Technical Approach This considers an chemical equilibrium between people (the social system), techniques knowledge (the technical system) and consumers (the external environment) to be of great significance in determining the organizations effectiveness (Pasmore, 1988).iii) The Contingency or Situational Approach The situational approach takes into account that as organizations are highly dependent of their external environments, there can be no universal guidepost suited for all situations (Selznick, 1949 Burns and Stalker, 1961 Woodward, 1965 Lawrence and Lorsch, 1967). The contingency approach suggests that social, legal, political, technical and sparing factors need to be taken into consideration before determining an organizations relations to different environments (Hellriegel and Slocum, 1973) .