Changing the organizational structure of a company is an essential move with regard to global expansion. The challenges that the organization faces in a bid to accomplish this can be overcome by addressing each challenge individually. To start with, the morale of the employees who are eagerly waiting to be promoted should not be killed.
This could be achieved by the company leaders developing a team that will come up with the members to be promoted. The managerial duties could be assigned according to the members’ managerial experiences and level of education. This could be followed by calling the staff members for a meeting, and explaining them the policies to be executed, as well as asking for their opinions and feedback on those policies.
According to Maslow (1998), motivation is governed by five essential needs, one of them is self esteem. Promotion encourages self esteem and, as a whole, increases the productivity of the workers in a company. This is because the staff members work better, as they feel valued and useful in the company.
Since the existing budget does not allow everyone to be promoted, other methods to prevent the workers feeling left out should be embarked on. The workers could, for example, be assigned some more duties and responsibilities without an increase in their pay.
This will give them a sense of belonging to the company, and help not kill their morale. Some employees could also be in a state whereby, their performance does not qualify them for a promotion. The employees could be taken through training and coaching to equip them with the relevant skills.
The company can also hire managers that have managerial skills, though groomed in other companies. This will help in the expansion and growth of the company, since the managers incorporated are likely to bring about new ideas learnt from previous companies or places of work.
In identifying the high performers in the company, there are some characteristics that the company leaders must look out for. One is the history of delivering quality results. This entails the consistency of performance which is a valid indicator of the employee’s ability to drive the company to success.
The next one is the ability to influence others; the individual should have the ability to relate and form partnerships with others. Since the company wants to globalize, demonstrating the ability to clearly communicate with internal and external groups is a skill that high performers should always possess. Identifying high performers is essential for the company, as these individuals are the backbone of the company, capable of driving results and building the future of the organization (Maslow, 1998).
In the process of effecting change and introducing the new organizational structure, unnecessary chaos may be created. To avoid this, Kurt Lewin in the 1940s developed a change management model which involves three stages; Unfreeze, change, and refreeze. The unfreeze stage involves creating motivation to change; Change involves promoting effective communication and empowering people to change while refreeze is all about returning the organization to a sense of stability (Lewin,2005).
Evaluation of leadership dynamic skills is also important, since the leaders determine the company’s course of direction. Being an instructional leader means leading others, and working with them (Chell, 1999). Therefore, the managers chosen should possess high interpersonal skills. A management team should also be developed in a way that team managers come together to make decisions collectively.
References
Chell, J. (1999).Introducing Principals to the Role of Instruction Leadership: A summary of a master’s project. NY: SSTA Research Centre.
Lewin, K. (2005). Change management and group dynamics: An article from Thinkers. London: Chartered Management Institute.
Maslow, H. (1998). Maslow on Management. New York: John Wiley & Sons Inc.
Amber Inn & Suites is a hotel chain that operates western as well as Rocky Mountain states. In 2005, this organization operated 250 sites (Kerin, 335). The services of this company are intended mostly for business travelers who value reasonable prices and comfortable accommodations. The composite marketing challenge is the inability to make a unique selling proposition to a variety of customers, especially tourists and people who are on a business trip.
It is also important to remember about organizational challenge of this company. As it has been shown in the case study, the planning in this organization was done in a top-down way which means that key decisions were made only by senior executives without involving people who occupied a lower place in the organizational hierarchy (Kerin, 331). As a result, the company became less responsive to the changes in customers’ demands and new strategies adopted by their competitors.
Organizational and marketing challenges contributed to several financial problems. It should be noted that within the period between 2003 and 2005, Amber Inn could not break even. In particular, they posted net losses during three consecutive years. Furthermore, within this period the company increased its corporate expenses which increased by $ 5,9 million (Kerin, 338). Hence, one can speak about inefficient budgeting and planning.
There are several opportunities that the company missed at that point. In particular, they failed to attract tourists who travelled through the Rocky Mountains states. Many of these people came with their families and they could be interested in the services of Amber Inn, if they knew more about the amenities that the company could offer them, for instance, indoor and outdoor saunas (Kerin, 336).
As it has been said, before the company was oriented toward the needs of business travelers. Yet, they did not provide the amenities such people might need. For instance, Amber Inn properties did not include conference rooms that could be of great use to such guests. Thus, they did not meet the needs of the major clients.
Furthermore, one also has to remember about various competitive challenges. The thing is that Amber Inn is positioned between full-service luxury hotels and economy hotels (Kerin, 336). These organizations lay stress either on their prices or the quality of their services. Overall, such strategies can succeed because they target a specific segment of the population. Thus, the management of Amber Inn must find a way of distinguishing their company among other hotel chains.
Overall, there is a need for the company to make a unique selling proposition (USP) to its customers. The USP that is made to business travelers should emphasize reasonable price, efficient services, and well-chosen locations of Amber Inn sites. Additionally, they also need mention such amenities that may be of great use to business travelers, for example, dataport telephones (Kerin, 335). Secondly, the USP to tourists should also stress pricing because people, who travel with families, are usually more price-sensitive.
The most important challenge that has to be overcome is related to organizational structure of a company. It is mostly hierarchical which means that new ideas and strategies are implemented slowly if their come from frontline managers. The main opportunity is that the company’s sites are well-positioned from geographical point of view.
For instance, they are located near airports, office complexes, shopping centers, and so forth (Kerin, 336). Thus, the management should remember about these threats and opportunities while developing new strategies.
Works Cited
Kerin, Roger. “Amber Inn & Suites, Inc.” In Strategic Marketing Problems: Cases and omments. Ed. Roger Kerin and Robert Peterson. New York: Prentice Hall, 2009. Print.
This essay paper covers the disadvantages of using matrix structure in organization. The matrix structure is regarded as the old system way of management, which applied in the old organization. Currently, many organizations do not prefer it, as it brings many challenges than the positive outcomes.
The paper also focuses on the factors that lead industries to use teams in their operations. For instance, there is an overview of two industries and their reasons of using teams, such as health and chemical manufacturing industries.
Matrix structure is the system where, the organization decides to make use of different teams in achieving a set objective. Every team is led by a manager and may be several supervisors to look over the activities. These teams are organized depending on the type of the project that the company is undertaking.
When working, people on the ground are supposed to report to more than one manager or supervisor (Samson & Daft, 2009). Most of people disregard this type of structure in the organization but just like any other authority structure, it has its benefits and shortcomings.
The organization should weigh its both sides to decide whether to apply it or not. To some extent, the matrix structure is used by the organization when there is no other option. The matrix structure is an old system that was used by organizations because they were too big to be managed by one manager.
This structure applied well in the past as those organizations were undertaking complex projects that required that king of a structure.
In addition, the matrix structure can also be the last option as currently cannot be used in small organizations, as it cannot work well. In small organizations, the best structure to use is the hierarchical authority.
The matrix structure mostly applies where there is a project, and most of the organizations make use of it only for projects use, such that disqualifying it as a structure that can be relied upon for daily-to-daily activities. Incase the matrix structure is used by the organization, the success or failure of the work assigned is directly connected to the manager in question.
The work done under the matrix structure is measured in terms of different teams, such that instead of the whole organization being approved for the success, the leading team gets all the credits for the well-done job. In several occasions, matrix structure has led to conflict in many organizations between the functional managers and the team.
Some functional managers and the supervisors may feel that they are doing something they are not supposed to be doing, and hence may oppose or bring some arguments with the team leaders.
Severally, confusion has been witnessed in organizations, whereby the employees or the ground people for the project are required to report to more than one manager or supervisor.
The normal format of the organization is that every individual has the actual person to whom he or she should report to and to whom he or she should seek for assistance. The matrix system comes with another unique way of working whereby one may be required to consult and rely on different personnel for information and updates (Clegg, Kornberger, & Pitsis, 2005).
The matrix structure works best for only the organizations that are project based. It may not apply to all the organizations, as its applications may be limited to some extent.
When an organization decides to make use of matrix structure, its stakeholders especially the clients get a notion that their relied organization is still making use of the tradition ways of leadership, which is an indication of lack of modernization.
It is the nature of the clients to appreciate the advancements of the organization from where they purchase their goods or services in both technology and in management.
A team in an organization is a group of people organized by the organization management, to be relied upon meeting a certain objective. If there are several teams in an organization set to accomplish a certain goal, they work interdependently through interacting within the organization.
The major role of the organizations team is to gather the information and input from the employees, which can contribute towards the achieving of the organizations goals.
Recently, through several research done by experts, most organizations have started making use of teams in their activities of achieving their set goals. Several factors have led to this action such that the uses of teams in an organization have led to an easier way of solving the business complexities of the business world.
By teams in an organization, the opportunity of applying the highest level of internal complexity of the management is created. In several organizations, some complex projects are taking place of late. The management is finding a better way of dividing those projects into small manageable parts that can be handled effectively within the given duration.
When a long-term project is divided into short-term parts, the organization looks for the experts of every part, who can handle the work effectively immediately.
The use of different teams in an organization is of benefit to the organization, as there are no individuals who have all the knowledge and skills, that may be required to perform a certain task. When people are working as a team within the organization, they work closely to their work, an act that makes them to perform best and improve in performances (Samson & Daft, 2009).
It is the wish of every employee to feel as part of their success, and the chance of working as a team gives them a chance to work directly to their responsibilities through contributions of ideas and working together. Through the team working groups, there are possibilities for empowerments that may be hard to be attained by individuals.
For instance, in the health industry the use of teams has been a successful action, whereby several teams have been established to work on different projects. The major factor that results to the healthy industry using the teams is the work diversity, whereby there are many clients to be served, many employees, and their firms are diversified.
In this industry, the use of teams has increased the productivity in the work output hence more clients are served more effectively within a very short duration. This industry is always serving many people at the same time, and the use of the teams has helped a greater deal.
There are specific and most strategic goals that need to be achieved at the right time and with teams’ big organizations are managing to serve their customers more effectively. As long as the teams organized are equipped with enough resources and time, they will perform their best.
For instance, in healthy industry they make use of different teams like leadership team comprised of the seniors in the organization and lead the main activities of the organization (Krone 2008).
The leadership team would work towards pointing the strategic direction through which the organization will pass through in achieving the set goals. The leadership team of the health industry does the planning, sets goals, and provides the guidance of managing the whole industry. Through this, the industry gets some specific people through which the leadership can be relied upon.
Another type of team used by the health industry is the motivation team, that is mostly supposed to be organizing events and activities to help employees maintain a high and positive spirit to enable them work effectively and achieve their goals.
For instance, the motivational team performs activities such as organizing employees’ lunches, planning for the organizations trips, and in some cases may plan of contributing funds to support the healthy challenged employees.
Through the motivational team, the whole of healthy industry manages to celebrate the success of the company through recognizing the best performers, celebrating the employees birthdays and new born welcoming parties.
The industry helps its diverse employees to participate in sports through the arrangements of the motivational team. The diversity of the work and the employees would always make the industry to use a certain team that would reach all the working places and to all employees.
Another example is in the chemical manufacturing industries where special attention to the employees is required. The size of the industry may not allow the management to reach every employee to create some awareness (Hanagan, 2005).
What the industry makes use of is the safety and environmental team, to reach all the employees in the firms. This is type of a team that may be required in all types of industries for the welfare of the employees, but in chemical producing industries, it’s the most important team. This team is dedicated to ensure the employees are very safe, as they work on high risky areas.
This team plans on how the employees will be trained on safety issues, and how to take care of themselves while performing their duties.
This team ensures that the employees are aware of what is safe of them through conducting safety talks, rules of housekeeping, and how to organize the work to avoid careless mistakes that may be very costly (Krone 2008).
The management may not afford to hold meetings with the employees, especially to discuss such sensitive issues due to limitation of time, but such a team can work effectively as all the responsibilities concerning the safety are all under their care.
Another team that the chemical manufacturing industries make use of is employee wellness team that mainly focuses on the health and fitness issues of the employees.
The employees in such an industry are highly prone to chemicals that may cause diseases, and so they need to be screened regularly by a dedicated team to avoid health issues going to an extent of causing serious health conditions.
The employee wellness team conducts such activities like walking clubs, and running groups (Abraham 2007). Through this team, the employees are capable of performing regular testing of some health conditions like testing the blood pressure, and the blood sugar levels.
The employee wellness team goes beyond the employees’ health to investment issues. If the management of the industry can be relied upon taking care of all such issues that may affect the employees, some issues may never have time to be addressed.
Through fully relying on the actions of the management, several organizations have left many sensitive issues untouched, as the workload may be too much. For every part and every employee in the industry to feel catered for, the use of teams has made it possible.
Moreover, the use of teams has made the employees to participate directly in the decision making of the organization. The employees form the teams, and therefore they get a chance to work directly in achieving the companies’ objectives.
Reference List
Abraham, K.L. Academy of Management Journal. (2007). Published by Academy of Management. Retrieved from: www.aom.pace.edu/amj/
Clegg, S., Kornberger, M. & Pitsis, T. (2005). Managing and organizations: an introduction to theory and practice. London: Sage.
Hanagan, T. (2005). Management: Concepts and practices. Harlow, England: Pearson.
Krone, M.M. Journal of Management & Organization. (2008). published by eContent Management Pty Ltd. Retrieved from: www.jmanorg.com
Samson, D. & Daft, R. L. Management. South Melbourne, Vic: Cengage Learning Australia.
The call to write a report on the poor situation at Training2Work institution was in itself an awakening call for the writer to render his support towards the current organizational trend globally. The request to investigate the issues affecting performance at Training2Work institution came after the institute’s meeting between the Chief Executive Officer and the senior managers of the Training division, the Marketing division, and the Sales division.
At this mentioned meeting, each senior manager had someone to blame for the organization’s failure to deliver the expected results. For instance, the senior training manager was of the opinion that he had done all that was within his jurisdiction and that any problem was bound to arise from the inadequacies of other divisions.
Additionally, in his view, he had introduced twenty new courses indicating his target achievement. Surprisingly, the marketing manager would not acknowledge failure on his part, but rather appraise the extensive marketing campaign that his division had conducted. The sales manager, too, emphasized the increasing number of customers whom they had attended.
Additionally, the claim from the sales team was that most of the customers inquiring about the programs offered by the institute left without making commitment due to their lack of sufficient information regarding the courses that were offered. The worst part is that each division had the audacity to point an accusing finger towards other divisions. Nevertheless, whenever such kind of behavior arises, then there is need to question the effectiveness of the organization structure and its management information system.
Problems Facing Training2Work
Many prominent organizations the world over remain effective because of their organization design and structure coupled with the kind of human resources that they have. In other words, organization structure plays a pivotal role as the support and backbone to proper decision-making process. It is in the hallmark of this that the author of this report engenders to explicate on the emerging need to restructure the organization.
It is very evident that the current organization structure bears numerous flaws which must be eliminated either through the adoption of a new organization structure or through the modification of the existing structure. The decision to adopt a new organization structure or to modify the existing structure depends on the key problems that result from the organization’s design. In addition, these problems can only be better understood within an organization design’s perspective.
Based on Amy Kates and Jay Galbraith’s systematic and persuasive approach, organization design should incorporate every organizational element in order to offer it a competitive edge in the market (Kates, and Galbraith, 2007).
Hence, it is in through this approach that organizations would be better placed to attain improved performance. Based on this view it is ostensibly evident that the existing organization structure does not pay close attention to all elements. In fact, numerous factors have been neglected due to the insufficient organization structure.
Moreover, proper organization design is the path to effective decision making and execution of strategy. It should also be born in mind that strategic managers should avoid making repetitive changes if those changes do not yield any progress within the organization. For instance, if the Training division should realize that the introduction of new courses is not the main goal of achieving organizational objectives but rather aligning those courses to the prevailing market demand.
Organization design demands that the strategic managers be aware of the kind of organization structure that is relevant for their organization (organizationalstructure.net). This process of determination depends on the organizational objectives. In this case, the Training2Work institution intends to increase its student numbers.
In other words, the ultimate goal is to generate optimal returns through increased enrollments. The major problem with this strategy is that the various divisions are operating as disjointed parts rather than operating as a system that is aimed at achieving one goal.
For instance, the Training department does not care about what is going on in the marketing or sales division. Similarly, the Marketing division does not have any clue as to what informed the Training department when coming up with various policies. All these confusions arise from the perception that managers have regarding the Training2Work organization structure.
Organization structure should embrace activities like coordination, task allocation, and supervision, all of which must aim at the accomplishment of the organizational goals (Pugh, 1990). The fact that each division gets to concern solely on the affairs of the division implies that there is no effective coordination within the organization.
The sales division has continually claimed to be making progress especially concerning the number of customers making inquiries. However, on close examination it has been discovered that they offer incomplete information without making any effort to address the problem.
This does not sound wise because they should have laid out clear outlines on ways of addressing the problem through the right channels. Furthermore, this problem indicates the eminent misunderstanding regarding organization structure. Organization structure should provide the basis on which the organization is to operate and the foundation of determining the decision makers and their influence on the organization’s actions (Jacobides, 2007).
Various typical organization structures would shape the actions of several organizations; that is, the bureaucratic, functional, divisional, matrix, and others.
The Training2Work institute tends to have a functional structure in which the three divisions have specialized staff who can never be allowed to move transfer from one division to another in the case of internal recruitment. This kind of structure is aimed at promoting operational efficiency in the division but it has consequently led to poor communication between the three divisions as well as inflexibility.
This is as a result of the centralization that has taken center stage in the organization management structure; that is, that the only way that the divisions are to interact is through the CEO and beyond that there is no effective interaction taking place. Additionally, the problem of low student numbers has been escalated by the centralization of specialization and coordination of tasks thus leading to slow processes.
In fact, it has been cited that at times the marketing department is constantly forced to publish incomplete information regarding courses due to reduced speed in uploading this information from the training division. Concisely, there is inadequate integration of activities in a vertical format in order to aid faster marketing and sales with minimal costs (Raymond and Charles, 1992).
Another problem that has been cited is that of issuing customers with too much information leading to poor understanding of the company’s courses on the part of customers. This problem has led to many customers remaining undecided about taking those courses offered.
The Product Development Manager (PDM) should filter the information posted on the Course Development System. This is because most customers do not have enough time to read everything posted on the website. But this has not been observed since sometimes the information posted is comprehensive or at times incomplete.
Furthermore, sometimes the administration staff uploads too much information about courses into the system after the beginning of the semester. In as much as this information is too much, it is also provided at the wrong time. In fact most of the information regarding courses offered should be provided before the semester begins in order to allow for proper planning both on the part of the trainers and on the part of the customers.
Further, the training division has allowed for a wrong culture within the division. There has been a strong acknowledgment on the part of the training division that they will continue establishing courses ‘as long as they can provide marketing and sales the names of the courses to students.’ In other words, they do not care about the relevance of the courses they establish so long as the marketing and sales team are in place to take the heat off the training division.
Next, the sales team has accumulated many unprocessed emails due to their high priority on face-to-face and phone customers. This implies that there exist many unsatisfied customers, who might consequently damage the reputation of the company. In fact, the major goal of the sales team should be customers’ satisfaction since through it they would be able to increase the number of customers enrolling for their course.
It is also important that the organization maintain cognizance on its management and information system. A clear focus on this system indicates profound flaws that must be addressed in order to solve the crisis that the organization is facing. Additionally, the information that is submitted for use in other departments goes through a lot of filtering. Furthermore, the process of sieving this information takes time and affects the operations of other divisions.
Furthermore, a lot of information that would tend useful to potential customers is dropped along the way in the due course of processing. Alternatively, irrelevant information is passed on to the marketing division which then goes ahead and publishes this information. In other words, the organization should evaluate its management information system because an efficient information system is root to effective decision making process.
Recommendations
After going through the various key problems facing the organization and addressing them in line with the different perspectives regarding organization structure, it is right and fitting that one considers the most justifiable course of action to assist in bringing the organization back to its feet.
To start with, there is no need to change the organization’s current structure since changing it could signify doing away with everything and starting everything afresh. Rather, the need that exists is that of modifying the various flaws within the organization in lieu of improving the overall performance of the organization. To accomplish this, the entire organizations should be viewed as a team (Robbins and Judge, 2007) rather than a group comprising of independent divisions.
This is because a problem associated with declined sales could be as a result of establishment of irrelevant courses within the training division. The problem could also be a result of poor marketing strategies or poor sales approach. This therefore implies that the entire organization should function as a synergism. The organization should also allow for job rotation so that individuals are able to get enough time to familiarize themselves with the operations of the entire organization.
There are two ways of classifying teams; vertical and horizontal (Thereja, 2008). It should be noted that organization structure does not depend on the setting of organization as team. However, in order to achieve optimal qualities the organization structure should be constituted in terms of teams as a whole (Thereja, 2007). Therefore, all the three divisions should be able to exchange information and ideas at all levels and be able to operate as a team in order for the number of enrollment to increase.
In the modern world, networking has emerged as one of the greatest drivers of business success. This is exactly the reason why the introduction of online sales tool –the Internet Sales Manager- should be received with great enthusiasm.
Since many people nowadays have greater access to the internet, there is a greater probability that a well-structured information system could pave way for increased awareness and customer base. Furthermore, the latest interest in intricate networks has in turn aroused a greater opportunity for businesses to manage their operations effectively (Amaral and Uzzi, 2007).
The Training2Work organization should give precedence to organization design since without proper planning there is bound to arise greater risk against the organization. Thus, according to Robert Simons effective design “must take into account a business’s strategy, its life cycle, its competitive environment, and any number of other factors that may be relevant (Simon, 2005, p.3).”
Therefore, in case the managers decide to remain passive about the operations of the organization the end result would be very detrimental. Furthermore, organization design must be given prominence when an organization is at its advanced stage since through time an organization is able to experience the shocks of complexity and relevance. Additionally, as Simons asserts, organizations should be designed in a manner that allows for adaptation over time (Simons, 2005, p.7).
This leads to four tensions that managers must reconcile; that is, tension between strategy and structure, accountability and adaptability, ladders and rings, and finally, the tension between self-interest and mission success (Simons, 2005, pp.7-8). For instance, self-interest should give way for organization success in order to allow for teamwork and coordination. In Training2Work, every division carries out activities in a manner that does not concern the other divisions.
Conclusion
The preceding section has extensively outlined the various problems faced by the Training2Work organization in the course of time leading to reduced returns. In the report the author has clearly expressed the CEO’s emphasis for clear direction and growth within the three divisions.
Additionally, it has been clear that working as a group of disjointed parts leads to doom rather than success. Therefore, as the report indicates, the organization should adopt a teamwork approach in which every participant works in synergism towards the overall organization success.
Furthermore, the management information system that the organization currently has should be transformed to incorporate all divisions and information from each division should be stored in a central reservoir from where it can be accessed by senior and other interested staff for effective decision making process.
However, in order to safeguard the information, employees should be provided with security codes depending on their levels of access to information. Critical information should only be availed to senior strategic managers so that they can be able to make relevant decisions pertaining the direction the organization wishes to follow.
In addition, a new department should be established specialized in research and development so that this department can be able to carry out a sole duty of analyzing the external environment and making relevant recommendations regarding the courses that should be offered and the timing of those courses. Another department that should be established is the quality control department, which evaluates all staff within the organization and makes relevant recommendations.
In some cases, employees should be allowed to take either on-the-job training or off-the-job training so that they can upscale their skills. Another thing that should be considered is job rotation. In job rotation, members in the sales division or any other division should be allowed to apply for positions in other departments whenever an opportunity for internal recruitment arises.
This is because there are people who discover their potentials in other areas within the organization rather than those that they had initially been allocated. This approach will in the first place eliminate boredom and increase individuals’ understanding of the activities of the organization.
Finally, the sales team should not only focus on face-to-face and phone communication with customers as the only tools for serving customers. They should also explore the web forum since there are many potential customers who prefer this approach. Moreover, if the problem is with poor staffing, the sales staff should undergo an evaluation procedure to determine those qualified for the task and those not qualified. The same should be applied to both the marketing and the training divisions.
References
Amaral, L.A.N. and B. Uzzi, 2007, “Complex Systems—A New Paradigm For The Integrative Study Of Management, Physical, and Technological Systems.” Management Science, 53, 7: 1033–1035.
Jacobides., M. G. 2007, “The Inherent Limits of Organizational Structure and the Unfulfilled Role of Hierarchy: Lessons From A Near-War.” Organization Science, 18, 3, 455-477
Kates, A., and Galbraith, J. R. 2007, Designing Your Organization: Using the Star Model to Solve Five Critical Design Challenges. Jossey-Bass, San Francisco.
Organizational Structure.Net, 2008, Organizational Structure Types and Design Strategy. Web.
Simons, R. 2005, Levels of Organization Design: How Managers Use Accountability Systems for Greater Performance and Commitment, Harvard Business School Press, Boston, Massachusetts.
Thareja, P. 2007, A Total Quality Organization thru ‘People Each One is Capable. Web.
Thareja, P. 2008, “Total Quality Organization Thru’ People (Part 16), Each One Is Capable”, FOUNDRY, Vol. XX, No. 4.
The process of choosing a new member of the board of directors in an organization whenever an incumbent one is leaving a particular office is a tricky task that requires great care and insight. It is important for leadership to change from one person to another after the agreed term of service expires or due to some other circumstances that crop up, which makes it necessary to have a person chosen to lead in particular docket.
For instance, a certain member of the board might pass on, and therefore creating a vacancy that ought to be filled. Another instance that can emerge to make it necessary to select another member due to a vacancy in the board is when a member leaves the office due to other personal reasons. In all these cases, it becomes compulsory to select a new member to fill in the available opportunity.
There is a wide range of potential candidates who can be selected to fill in the vacant space. This person can either be from within the organization or from outside the company. At the same time this person can be one of the board members, a top leader in the company, an outsider who has some affiliation with the organization, but does not have any involvement in the company, and lastly, there can be an outsider who got no connection with the company.
Members who have affiliations with the organization are likely to be slow in generating new and innovative measures of development for the corporation. Probable developments must have taken place in their presence and therefore their means to creativity are limited by the presence in that corporation if compared with outsiders.
Having been associated and having worked in the corporation lets one likely think that growth and development policies have probably been exhausted, even when that is not the case. The ability for an insider to pursue innovative processes for the corporation is therefore slow or limited to some extent.
Another aspect of an insider that may not be favorable for the corporation is the emulation of previous management by the insider once appointed, even when that management was not effective or efficient in its leadership.
The newly appointed member may continue to uphold the leadership qualities that were used before and this may result to ineffective operations, even when such changes of management is meant to achieve management change for the organization. Failure to move the corporation forward proves the entire process ineffective because such changes should be tailored towards the forward movement of the corporation (Gup 180).
New challenges are the mother of innovations, and this is not different in corporation management. Having an outsider in the management of a corporation brings in new ideas that were not present before. Generation of new management systems is also likely to take place.
This is because the outsider has no interactions with the corporation, and the basic fundamental role of managing a corporation is to oversee its success in its particular line of production. What this means is that an outsider will give the corporation a chance to grow at a faster rate than it would have been the case if an insider. This is due to the diverse creativity and innovative procedures that the outsider might have at hand, given that he or she is not an affiliate of the corporation (Hirschey, John, and Makhija 140).
Likewise, operations of any corporation are essential to the success of that corporation. The operation potential of corporation determines the level of revenues that the corporation is likely to generate. Consequently, the revenues that the corporation generates determine the profitability of the firm.
The long term plans of the corporation are solely based on the operations ability of the corporation in the long run. These plans are therefore key factors to consider in the line of management, so that the effectiveness of the management is as well brought into focus. An outside member of the management panel can pursue such policies with broad and diverse reasoning that an insider may be limited to generate (Gup 200).
In essence, the management panel should be in a position to understand that the corporation is there to make better achievements. Therefore, the management should as well welcome an insider or an outsider in the management board.
The issue in managing corporations is not who does what and where he or she is from, but it is all about making the corporation better in its overall welfare. Conflicts of interest are therefore not expected, and it is the responsibility of the entire management team to work together in accordance to the codes of ethics that govern the corporation (Hirschey, John, Makhija 150).
Works Cited
Gup, Benton. Corporate Governance in Banking: A Global Perspective. California: Edward Elgar Publishing, 2007. Print.
Hirschey, Mark, John Kose, and Makhija Anil. Corporate Governance and Finance Volume 8 of Advances in Financial Economics, Elsevier Book Series on Science Direct, Chicago: Emerald Group Publishing, 2003. Print.
The structure of an organization refers to both the formal and informal way that duties and responsibilities, channels of authority, avenues of communication, and levels of power are developed and coordinated in an organization.
Getting to understand the structure of an organization is not only being acquainted with the decision making process but also getting to know the chain of command that is followed, procedures that govern provision of service to the customers and how your own expectations regarding the job fit into the broad scheme of things (Kirst-Ashman and Hull, 2008, p. 24).
The organization is a drug rehabilitation group whose sole mission is to establish policies and programs that will make individuals break their drug abuse habits, develop alternatives to a life-style that is drug related. The organization has also established a youth centre to provide youth with an opportunity not only to have fun but also to take part in productive activities and socialize.
Generally, organizational structure comprises of a chain of command, decision-making process, and specifications in procedures, as well as how labor is divided (Slavin, 1985, p. 105). The organization has a simple structure with two main levels, which are the operating level and the strategic apex.
Direct supervision and oversight are the means through which coordination of the organization is carried out. Due to this simple organizational structure, the community organization has managed to attain both adaptability and flexibility.
These two virtues can be created within the organization. However, given that vices can easily emanate from the virtues, the management often initiates or inhibits change. One of the ways in which the organization enhances this is to punish unpredictably and reward colossally.
The organization comprises of the manager, counselor, educator, facilitator, advocate, and mobilizer. Being too close to the organization’s daily operations can easily result to the general facilitator being not only side tracked but also losing sight of the long-term strategies (Bolman and Deal, 2008, p. 80).
Thus, daily operations have been left in the hands of the coordinator. Every member has his/her own line of duties assigned to him or her by the manager. However, teamwork is encouraged and fulfilled in the performance of duties
The counselor plays a role in giving guidance to the clients and helps them in problem solving. For example, one of our counselors may assist a teenager on choosing a suitable contraceptive. The role of the educator is to offer information as well as give relevant skills.
For example, the organization’s educator may teach the youth on the negative effects of excessive drinking. The manager coordinates all group activities and connects with other agencies, facilities or organizations to ensure that needed services have been effectively rendered.
On the other hand, the mobilizer links with and convenes the people who are in the community to identify areas of need (Kirst-Ashman and Hull, 2008). Most of the decisions are made by the manager after consulting with the rest of staff members.
The organization carries out its duties in collaboration with other organizations based within the same community and receives its funding from government agencies and donors. It has been in existence for the last two years and its impact continues to be felt in most parts of the community.
The Human Relations Model as Depicted in the Organization
This draws more on the psychology rather than on engineering and accounting like the rational model would do. The model borrows much from McGregor’s theory X and theory Y. Theory X suggests that employees do not like work and can do all that they can to avoid it.
Therefore, managers have to employ several control schemes such as coercion and threats to ensure that employees are working towards the fulfillment of the organization’s goals. The theory assumes that the normal employee is lazy, is less ambitious, and esteems security more than anything else (Schwalbe, 2008, p. 347; Fournies, 2000, p. 33).
Research seemed to disapprove this theory after which McGregor came up with a set of assumptions governing human behavior that is theory Y and is at times termed as the human relations model. This theory does not ascribe to the fact that employees do not like working, but rather regard work to be as natural as resting or playing.
Self-actualization and satisfaction of rewards are the main rewards for the workers. The two theories are based on the managers’ perception of workers.
Individual Role in Meeting organizational Goals
There arte specific elements of the human relations model that are evident in our organization. First, it is comprised of individual people who make collective efforts to ensure that the goals of the organization have been achieved.
The main goal of the organization is to reduce drug abuse in the community. This is achieved by carrying out several programmes in which everybody plays their respective role.
Therefore, the efforts contributed by each individual in the group count and they are required for the attainment of the organization’s goal.
When the spirit of team work takes centre stage in the organization, everything is synchronized, there is flow of ideas, everybody is clear with regard to what is supposed to be done, there is clear and open communication among all members, everybody is comfortable with regard to decisions made and they operate in matching harmony (Cahill, 2003, p. 59).
Teamwork is important since it leads to devotion, innovation, growth, and support, both at an individual and organizational level (Russell and Swanburg, 2006, p. 120).
Use of Small Groups
Secondly, individuals work through small groups. These work groups are informal with many dynamics. There are groups of young people with serious emotional and behavioral problems as a result of drug abuse especially with regard to the use of hard drugs. The organization works at rehabilitation of members belonging to this group.
There are groups of parents who are taught and trained on how to deal with children who are drug abusive as well as how to effectively nurture children so as to prevent them from being caught up in drug and substance abuse.
There are other groups of youth who engage in different activities such as sports and fun. There are also school-based teams to enlighten teenagers and other young people on the drug abuse.
Conflict Resolution through Communication
Thirdly, there is good communication from the manager to all other staff members. The purpose of this is to avoid any conflict that might erupt within the organization. This is because conflict is not only unnecessary but also counterproductive. Communication breakdowns are the main cause of conflict.
Good skills in communication are very crucial in resolving conflicts and carrying out other negotiations. Whether conflict is desirable or not, it exists within the organization and is endemic. As people interact in the organization, tension is created by different values and situations.
When conflict is noticed, appreciated, and managed in a manner that is appropriate, benefits for the individual and the entire organization will result. A manager who is caring and effective uses the conflict to ensure that both the individuals involved and segments of the organization have undergone growth (Silverthome, 2005, p. 193).
The manager of the organization is effective since he often uses conflicts for stimulating personal commitment, dealing with apparent problems, ensuring that both self-appraisal and critical vigilance have been increased and in examining values that conflict when arriving at organizational decisions.
Leadership Skills
The fourth aspect of this model is the need for managers to possess and cultivate leadership skills. Having human relations, skills will enable them to have an understanding of the employees’ needs and then be able to coordinate the needs within the organization.
Both formal and social forms of authority are requisites if the managers have to achieve this. Hence, an effective manager will emerge as a team leader rather than a dictator.
The manager in our organization has a set of leadership skills that have helped the organization to move forward. These are technical skills, which are important in helping him maintain and navigate the organization.
He also possesses administrative skills that are helpful in managing the organization’s resources such as operating funds from government agencies and other organizations, physical assets, human resources within the organization and other kinds of resources.
He also has conceptual skills, which have been enabling him to detect the potential consequences of any given decision. These skills are also exhibited by almost every member of staff in the organization since most of their roles entail leadership.
The technical, administrative, and conceptual skills are as important to the modern day organizational leader as they were to the captain of a ship during the golden era of piracy (Heatherly, 2008, p. 11).
Additionally, the manager has some interpersonal skills whose application has helped in enabling the organization to be on its feet. They include the ability: to resolve conflicts among members of staff, build a team without necessarily finding fault or pointing a finger of accusation and making suitable decisions (Levin, 2010, p. 247).
References
Bolman, L. and Deal, T. (2008). Reframing Organizations: Artistry, Choice and Leadership. San Francisco: Jossey-Bass.
Cahill, K.M. (2003). Basics of International Humanitarian Missions. NY: The Center for International Health and Cooperation.
Fournies, F. F. (2000). Coaching for Improved Work Experience. NY: Mc-Graw Hill Professional.
Heatherly, D. (2008). A Pirate Captain’s Guide to Leadership: How to Turn Workplace Pirates into Motivated and Productive Employees. Las Vegas, Nevada: A Light House for Leaders
Kirst-Ashman, K. and Hull, G. (2008). Understanding Generalist Practice. Belmont: Cengage Learning.
Levin, G. (2010). Interpersonal Skills for Portfolio, Program, and Project Managers. Vienna: Management Concepts.
Russell, L. and Swanburg, R. (2006). Management and leadership for nurse administrators. NY: Jones and Bartlett Learning.
Schwalbe, K. (2008). Information Technology Project Management. Boston: Cengage Learning.
Silverthome, C.P. (2005). Organizational psychology in cross-cultural perspective. New York and London: New York University Press.
Slavin, S. (1985). Social Administration: An introduction to human services management. New York: Routledge.
This article focuses on the organization structure of Treetop Forest Production Limited. Treetop Productions is a sawmill factory that is located at British Colombia in Canada. The main purpose of the factory is to convert raw logs that have been cut from local forest into building grade timber. The sizes of timber that the factory releases as finished products are mainly of 2-by-4 and 2-by 6 in size.
All the timber that is released as finished products have a standard size. The factory has been in operation for the last thirty years. Throughout this time, the factory has been working in an effective and efficient manner. It has been incurring minimal running and operating costs to achieve optimum output.
However, the company bought new plant and machinery equipments and undertook a repair and maintenance exercise. All these efforts were to maintain the effectiveness and efficiency of the factorys operations.
To support its activities, the company has a strong workforce that comprises of a general manager, 16 supervisors and supporting staff. The organization also has approximately 180 unionised staff who work on a contractual basis. All these employees are divided into the following departments:
Boom
Sawmill
Planner
Packaging
Shipping and maintenance
All of these departments work on two shifts except the planner and shipping departments that work on the morning shift and the maintenance department that work the night shift. In addition, all these departments apart from the packaging department have a supervisor in their entire shift.
To compensate on this, the planner supervisor is in charge of the department during the morning shit while the sawmill supervisor is in charge of the department during the afternoon shift. The distance between the packaging department and these two departments is long. As a result, the packaging department has been receiving minimal supervision. This has resulted to a decline in the performance of the department.
Most of the products of the factory are sold in the international market. Here, the customers mainly rely on the packaging of these undifferentiated goods to decide on which company to buy from. Initially, Treetop had been experiencing high rates of purchase of its products.
However, as a result of the laxity of the packaging department, many consumers have declined purchasing products from Treetop and instead purchased from rival companies. This has tremendously reduced the revenue of the company. In addition, there is a huge backlog of work in the packaging department. This has come about as a result of increased production from other department and laxity on the packaging department.
To compensate for this backlog, the employees of the department have to work more hours during their shifts. This in turn increases the cost budget of the factory as a result of the overtime dues. In addition, employees of the department have been increasing their breaks and going home early. This has impacted negatively on the operations of the department and that of the factory as a whole.
This scenario is common is many manufacturing and processing companies. There has always been the case of poor performance from one or more departments that in turn affect the performance of the entire factory in a negative way. According to the theory of structural causes of conflicts, the performance of one department leads to the underperformance of another department.
To ensure that all the departments in an organization work effectively and efficiently, corrective measures have to be installed by the administration for an ideal situation to prevail. In this case, the management should ensure that the packaging department is supervised effectively. In addition, the employees of the department should be motivated in order to boost their morale.
Analysis and Discussion
From the information that has been presented in this case study, it is evident that lack of proper leadership is the main problem that the packaging department is facing. The main problem that the packaging department is facing is poor supervision. As a result, the employees find it easier to bend the rules and regulations of the factory.
Poor supervision has led to the employees not being able to meet the set goals and targets of the factory. The employees have also commenced on a habit of increasing their breaks.
It has been reported that they extend their tea break by five minutes and lunch break by ten. In addition, some of the employees also go home before their shift ends. This is a clear indication of poor supervision from the management and the development of bad behaviour from the employees.
Leadership is an essential factor in the running and management of an organization. It is the work of a leader to lead a group of individuals, supervise, motivate, educate and control his staff (Reisner 16). Leadership has been one of the key management tools that have been researched on for many years now. Several theories with regards to leadership have been presented.
Perhaps the theory that applies the most in this case scenario is the theory of the role of human factor in human management (Bass 22). Theory was first presented in the academicians like Taylor and McGregor during the 1930s. According to them, it was essential to control the actions of employees and at the same time provide conducive working environment for them.
This can be achieved with the use of proper leadership styles, employee motivation (through rewards, salary increments, bonuses and promotions) and interpersonal communication. If these set of practices are applied, then the employees of the packaging department will increase their efforts and in the process, they will be able to meet the goals and targets of the factory as well as their own personal goals.
Conclusion and Recommendation
From the above analysis, it is evident that the poor performance of the packaging department is as a result of poor supervision. Supervision falls under the management of the organization. Therefore, to improve on the activities of the packaging department, it is essential for the company to improve on the manner in which the packaging department is being supervised.
According to the policy of the factory, each department should have a different supervisor for each shit. The company has sixteen supervisors. Furthermore, only three departments have more than one shift. This makes seven active supervisors on a specific day (the packaging department is not included). Therefore, on one specific day, eight supervisors are left free.
I therefore recommend two of these supervisors to be assigned to the packaging department. This will not only improve the efficiency of leadership in the factory but will also boost its performance. In addition, these supervisors should be equipped with great leadership skills (Jago 330).
In this case scenario, they should learn how to motivate hardworking employees. This will make employees to work even harder and attain the set goals and target. This will in turn boost the performance of the department and the entire factory as a whole.
Works Cited
Bass, Bones. “From Transactional to Transformational Leadership: Learning to Share the Vision.” Organizational Dynamics 18.3 2010: 19-31. Print
Jago, Arnold. “Leadership: Perspectives in Theory and Research.” Management Science 28.3 1982: 315-336. Print
Reisner,Richards. “When a Turnaround Stalls.” Harvard Business Review 45.1 2002: 15-18. Print
Organizational structure is the hierarchical model of operation, based on subdividing the entire organization into functional units that are mutually dependent.
There are two types of structures: the traditional structure (the functional structure, the line structure), and the division structure (market structure, product structure and geographical structure).
For our online second-hand book store, we decided to use the functional structure which entails classifying the groups of people according to the functions they perform and their skill sets (Miles, 2003).
The structure
The functional structure includes the president, the sales and marketing department, customer care division, accounting, procurement and administration. The business will include three founders and fifteen other staff members.
The founders will hold key positions in the business, including the presidency, accounts and administration. The president will be the overall overseer of the company, making important decisions and he is the final authority in the company.
The position can, however, be switched amongst the three founders if they so desire. However, it mainly falls on the person who came up with the original business idea.
The accounts department shall be held by a professional accountant, thereby controlling the financial aspects of the business that means all the revenues and expenditures.
The procurement department will mainly deal with the acquisition of the books from the different sources buying them off from other students who have finished their courses, online sources and book stores, and also cataloguing them if and when they are procured.
The sales and marketing department will use advertising and other resources to ensure that the business target of selling large amounts of books is reached. Key to achieving this goal is to use our website and other social sites to capture the intended audiences.
The administration department will perform the function of staffing and assessing the growth and development of the business, hiring and dismissing. This will ensure that all the departments perform their duties as required.
Every company requires a public relations department that deals with any enquiries, suggestions and complains from the customers. Below is a chart showing the organizational structure of our business.
Organizational structure chart
For the company to perform, the individuals should be professionals in whichever department they hold. They should be able to work independent of each other but accomplishing the tasks set out for them.
The marketing and sales department should have the bulk of the staff, consisting of professional marketers with a convincing business marketing and sales skills.
They should be able to come up with marketing and sales designs that will attract the customers to the online store. The business largely depends on this department for success.
The procurement team has professionals who understand the customers’ needs and get the right books at the right time. This is the department that equalizes the supply and demand of the customers.
Skill gap Management
A start up business has numerous challenges at the beginning, but the management should come up with ways of dealing with the situations as they arise. Most important is the communication issue (Galbraith, 2001).
There should be clear channels of communication all way from the bottom to the top. As a small business, the company may not be able to employ a large staff, so it is important for the existing staff to be versatile and able to switch departments easily.
References
Galbraith, J 2001, Designing your organization: An executive guide to strategy, structure and process, John Wiley & Sons Inc, Denver.
Miles, R 2003, Organizational strategy, structure and process, Stanford University Press, Stanford.
The strengths and weaknesses of BEC’s organizational structure before 2006
Strengths
BEC’s organizational structure before 2006 was favorable at the initial stage because the business was still small. Moreover, little emphasis was placed on marketing at this stage. Besides, all the employees were always involved in each project. This meant that individuals were assigned tasks based on their skills and schedules. This had the benefit of producing quality services because of collaboration. Moreover, employees were personally involved in the projects. Also, employees felt like they were part of the project. In essence, there was job satisfaction among employees. Furthermore, working together enabled employees to learn from one another. This structure created an open culture within the organization (Rothstein and Jiao 1-9).
Weaknesses
Firstly, BEC did not have proper structures because all the employees worked in one office. Moreover, the company did not have clearly defined departments. In this regard, there were no clearly defined responsibilities for employees. This created problems when it came to assigning tasks because it was difficult to identify who was authorized to give orders (Rothstein and Jiao 1-9).
The strengths and weaknesses of BEC’s organizational structure after 2006
Strengths
This new structure contained clearly defined departments within the company (BEC 1). This structure empowered employees charged with the responsibility of organizing projects. Departments such as research and development, among others, were essential because they aided the company to improve capacity building. Moreover, the departments were designed based on expertise of employees to maximize quality of services. Project management organizational structure enabled the company to save time. Also, the company became more efficient (Rothstein and Jiao 1-9).
Weaknesses
In the process, the company realized that the new project management organizational structure had its flaws. For instance, many projects forced employees to multitask thereby putting a lot of pressure on them. Interestingly, some employees were working on more than 10 projects; this increased pressure and stress on employees, which lowered employee satisfaction. Essentially, this system also lowered quality of services. Also, there was no clear answer on who was senior between project managers and departmental managers. This created confusion on who had the final say in the departments (Rothstein and Jiao 1-9).
The root causes of BEC’s organizational problems after 2006
Firstly, increased volume of work was a root cause of the company’s organizational problems. This happened because the company was forced to focus on the business activities as opposed to capacity building. In the process, the company’s few employees were forced to multitask on numerous projects. This resulted in increased pressure on employees thereby causing exhaustion and dissatisfaction among them. Secondly, the new organizational structure did not clearly define the roles of project managers.
This created conflict because some roles were shared between project managers and departmental managers. Moreover, project managers felt frustrated because of the poor relationship with employees and departmental managers. In essence, rapid growth in BEC caused more problems as it tried to adjust to the changes in business environment (Reimann 1).
A proper strategy to address BEC’s organizational problems after 2006
Firstly, the company should consider defining the roles of project managers and the roles of departmental managers. This would enable employees to understand whether they should be dealing directly with the project manager or with the departmental manager (Corkindale 1). In essence, the company should consider putting departmental managers in charge of employees within their respective areas. On the other hand, project managers should be given more power to enable them to coordinate with departmental managers on projects (DeLoatch 1). In this case, employees would report to the departmental managers, while the managers would report to the project managers. This would enable departmental managers to assign tasks by the needs of the company without causing conflict with project managers (Vangen 1).
The choice of organizational structure is critical for the functioning of an organization. Moreover, it can profoundly shape the experiences of workers who have to adapt to the performance standards that are set by the management. Therefore, business administrators should ensure that employees can best fulfill their talents and attain organizational goals. Overall, I would prefer to work in a functional organizational system because it enables a person to interact with different professionals and share ideas with others. In my view, this work environment fosters creativity and decision-making. In turn, it may not be easy for me to work in a matrix organization because of this type of structure because it can lead to role ambiguity and work stress. However, one should also remember that the efficiency of these models depends on the skills of business administrators and their understanding of the tasks that a company should do shortly. These are the main issues that should be examined in greater detail.
It should be mentioned that the divisional structure implies that a group of people with diverse skills can work on the creation of a certain product (Swayne, 2012, p. 338). For example, this approach is typical of automotive companies in which different divisions work on the design, manufacturing, and even marketing of various car models. Such an approach is adopted by various enterprises. The main advantage of this structure is that employees can take into account various organizational factors while taking decisions (Swayne, 2012, p. 338). Furthermore, they can develop the most optimal solutions to the problems that a company can face (Swayne, 2012, p. 338). In my view, the main advantage of a divisional structure is that it fosters creativity because employees can express diverse points of view. They can better respond to the changes in the external environment. This is one of the main aspects that can be identified.
In contrast, a functional organizational system implies that different departments are comprised of people who have relatively similar skills. For instance, in many companies, there are engineering departments, Research and Development (R&D) teams, or other groups that are engaged in a very specific activity. They do not usually interact with the representatives of other departments. The main problem is that the employees working in such companies do not see what other workers are doing or what kind of difficulties they have to overcome. This is why they have a very limited view of the activities within a company. Under such circumstances, it may be difficult for a person to display his/her best qualities because this person can work mostly on very narrow tasks. This is why I would prefer a divisional organizational system to other models.
Much attention should also be paid to the so-called matrix organizations. The main peculiarity of this approach is that employees with diverse skills can work on the creation of different products. It should be borne in mind that a single person can be a member of various production teams (Bateman & Snell, 2011). This approach has been adopted by various manufacturing companies (Bateman & Snell, 2011). The main problem is that an individual cannot easily get used to a work environment in which he/she can be accountable to several managers. Moreover, this person can have to work on different unrelated tasks. Under such circumstances, a person is more likely to struggle with stress. Sometimes, he/she may not meet the deadlines that are set by the executives. Such problems occur in those cases when different managers do not coordinate their efforts properly. This is one of the main pitfalls that should be avoided by business administrators.
Admittedly, these examples do not prove that some of organizational systems are entirely ineffective. This view of these models can be too simplistic. For example, a functional approach is particularly suitable when the activities of workers require in-depth expertise. Moreover, in some companies, various functional departments are practically independent of one another. Apart from that, a matrix organizational system can be applicable if business administrators can ensure effective allocation of duties and scheduling (Meredith & Shafer, 2010). They should make sure that an employee is not torn between two tasks (Meredith & Shafer, 2010). In many cases, the use of this organizational system can improve the use of labor force and resources. This is one of the issues that should be taken into account by managers.
On the whole, this discussion suggests that the performance of a company and the experiences of workers are dependent on the type of organizational system. The examples examined in this paper indicate that the divisional system can better foster creativity and decision-making. In turn, a functional approach is more suitable when different departments are relatively independent of one another. Matrix organizations can be more time-efficient and responsive to changes. The divisional approach seems to be most suitable because it can safeguard companies against various risks such as role ambiguity or poor exchange of information. This is the main advantage of this method.
Reference List
Bateman, T., & Snell, S. (2011). Management: Leading and collaborating in the competitive world. New York, NY: McGraw-Hill/Irwin.
Meredith, J., & Shafer, S. (2010). Operations management for MBAs. Hoboken, NJ: Wiley.
Swayne, L. (2012). Strategic Management of Health Care Organizations. New York, NY: John Wiley & Sons.
