The Concept of Organizational Structure, Boundaries and Space - Case Study Example

Understanding Organizations In recent times, several new and innovative concepts have been introduced in order to understand the structure and functioning of organizations. Organizational structure, boundaries and space are the three essential concepts that have been used in order to understand the structure and the culture of the organization. Furthermore, they assist in understanding the social interactions and the decision making procedure; both systems are defined and understood in terms of space. The aim of this paper is to analyze and examine the different constructions of space that are used to understand organizations in the lights of broad and diverse academic resources. Based on these constructions, an organization has been selected, which would be analyzed and studied. the overall goal of this paper is to understand the concept of organizational structure, boundaries and space. CORE CONCEPTS Organizational Structure Organizational structure is considered to be an arrangement or system that is used to classify and organize the different types of coordination and interaction that takes place among the employees and departments of the organization in order to meet the organizational aims and objectives (Gellerman, 1990, 108). In simple terms, organizational structure is used to organize and manage the interactions of the workers and the different departments to improve the productivity of the organization, enhance performance and increase profitability. Organizations can be planned, organized and managed in several ways (Gellerman, 1990, 119). The selection of the structure depends on the organizational goals. Based on the selection of the structure, how the organization will work and perform is determined. Organizational structure helps to manage the activities of the organization in an effective manner. It divides the responsibilities and the functions, which are then assigned to a particular department or team. Organizational Boundaries From classical theory, organizational boundaries of the system are defined in context to import and export (Eadie, 2000, 74). It views that an organization is system, which utilizes its resources and assets in order to manufacture and produce products. The boundary acts as the exchange of ideas and interactions between the company and the environment, where it operates. It acts as membrane and protects the organization from risks and dangers (Eadie, 2000, 79). Managers have the authority to manage and organize the activities of the internal and external boundaries and analyzing the fluctuations that take place in the external environment. Without a boundary, the company would not be able to manage and organize its activities. From modern definition, a boundary is seen as a community of employees, investors, suppliers, consultants and clients, each working collaboratively in a society (Eadie, 2000, 82). The entire team is known to work in collaboration in order to protect the organization from external threats and risks. Organizational Space Organizational space can be defined in two ways. In the literal sense, it is considered to be the creation and establishment of an atmosphere of the organization. In terms of metaphor, it is seen as a system, which erects the structure of the organization. Balogun & Johnson (2004, 523) assert that “organizational space describes the influence of the spatial environment on the health, the mind, and the behavior of humans in and around organizations”. OVERVIEW Culture is considered to be the movement, flow and exchange of meanings inside a society. It is also defined as a group of individuals living in the same society, sharing their experiences (Arunachalam, 2004, 227). Based on those experiences, meanings are derived (Ahuja, 2000, 435). Organizational culture, in terms of business, is defined as a group of employees working in the same organization, who share their experiences and values in the organizational space. The two concepts are connected to one another. Business professionals, academics and experts know that the culture of the organization and the organizational space are interrelated (Balogun & Johnson, 2004, 529). The structure of the organization supports the organizational culture, boundaries and space in order to interact and exchange of ideas (Abernethy & Vagoni, 2004, 208). Organizations operate just like human societies and communities. The employees, clients, products and services are the important part of that society . Just like societies, organizations are influenced by the external and internal organizational boundaries. The external organizational boundaries that influence organizations include globalization, rapid development in technology, rate of production, demand and supply of the product, etc (Ahuja, 2000, 446). The organizational structure, boundaries and space are used to give shape to the organization. It connects the structure with the other systems of the organization (Abernethy & Vagoni, 2004, 210). It also aims at creating and establishing an organization, which would assist and maintaining the value of products and services in order to maintain and attract clients as well as increasing organizational efficiency and managing itself. Research suggests that organizational structures differ from one another (Ahuja, 2000, 449). Strong and efficient structures are known to be flexible, adaptable, economical and reliable. ANALYSIS OF COMPANY: BRITISH AIRWAYS Background In United Kingdom, the aviation industry has changed at an escalating rate. The changes owe their existence to rapid globalization, technological developments and changes in political, social and economical arenas. From research, it is evident that British Airways is considered to be largest and popular airlines at national and international level (Daniels, 2009, 2). Its main base is at Heathrow Airport, where it manages its flight timetable and plan of more than three hundred cities. According to Moyer, (2006, 89), “the primary stakeholders of British Airways are the airline passengers. British Airways has successfully sought to provide comfort and value added services for its customers. This is done in order to achieve efficiency and effectiveness”. The company offers diverse and wide ranging services including technical assistance to other airlines, cargo services, etc. Its main agenda is to remain the number one airline in the aviation industry (Abernethy & Vagoni, 2004, 218). For this purpose, it seeks to offer reliable services to its clients on flights and ground. It seeks to use and employ technology in order to ensure that its customer remain loyal to the brand. Furthermore, it ensures that its customers travelling experience is unique and enthralling. According to Johnson (2003, 148), “the organization has been committed to the responsibility of ensuring quality and excellence for customers. Airline passengers are allowed internet access, laptop connectivity, and other innovative facilities”. Furthermore, “ the organization also has the responsibility of catering to the requirements of business passengers” (Johnson, 2003, 149). Organizational Structure As mentioned earlier, British Airways is a large-scale corporation that works at national and international levels. It has an official and authorized structure that works on basis of particular rules, regulations and procedures (Johnson, 2003, 159). Previously, the structure of the organization was hierarchical and therefore, the decision making process was in the hands of the top management. Since the company identified and recognized that the fierce competition, rapid globalization, economic recession and technological developments are the factors that would influence its productivity and profitability (Johnson, 2003, 201). For this purpose, it took the decision to change and modify its organizational structure. The former structure had layers of management, which has now been removed completely. In order to improve communication and promote team building, the company has divided the structure into different departments and workgroups (Johnson, 2006, 56). All of the departments and groups work simultaneously in order to improve organizational efficiency and productivity. Even though the current structure is similar to the former hierarchical structure, it ensures that all employees are involved and active in the decision making process. Organizational Boundaries In terms of organizational boundaries, the management of British Airways needs to ensure that it offers economical rates to its customers in order to deal with its competitors in the national and international market (Johnson, 2006, 88). Research suggests that it also experienced some issues with its employees. Majority of these issues were created by its pilots because of the low salaries. Such issues can jeopardize its place in the market and consumers may turn to their competitors. In such an event, it is essential, that the management improves its relations with its employees and offer them benefits. Organizational Space In terms of organizational space, British Airways has successfully created an organizational structure, which is different from its competitors. It has successfully established an organizational culture, which represents “functional differentiation” (Moyer, 2006, 105). The structure has two cultures; flight and on ground. On basis of flight, it offers a friendly atmosphere. It seeks to cooperate with its passengers and ensure that they get the best services in order to create a unique experience for them. The ground culture also ensures that it cooperates with its customers. At the same time, “the ground culture of BA is highly competitive and aims to maintain its place in the market” (Moyer, 2006, 110). CONCLUSION In the business domain, organizational structure, boundaries and space have emerged as new and innovative concepts in order to understand the system and functioning of organizations. Organizations and communities are similar in nature. Organization is composed of employees, clients, products and services and the structure of the organization supports the organizational culture, boundaries and space in order to interact and exchange of ideas. Organizational structure is the system or process that is used to manage employees and their duties. Organizational boundary is seen as an environment where all the stakeholders interact with one another. Organizational space is defined as the creation and establishment of the culture of the organization. This paper has selected British Airways and has analyzed it in the lights of broad and diverse academic resources. BILIOGRAPHY Moyer, K. (2006). Scenario planning at British airways-a case study. Long Range Planning, 29(2): Daniel Michaels.  (2009, June 25). Corporate News: British Air, Union Near Pact, But Hurdle on Costs Remains. Wall Street Journal  (Eastern Edition),  p. B.2 Richard A. Johnson, Fremont E. Kast, and James E. Rosenzweig, the Theory and Management of Systems, 3rd ed. (New York: McGraw-Hill, 2003). Richard Arvid Johnson (2006). Management, systems, and society: an introduction. Pacific Palisades, Calif.: Goodyear Pub. Co. Abernethy, M. A. and E. Vagnoni. 2004. Power, organization design and managerial behavior. Accounting, Organizations and Society 29(3-4): 207-225. Ahuja, G. 2000. Collaboration networks, structural holes, and innovation: A longitudinal study. Administrative Science Quarterly 45(3): 425-455 Arunachalam, V. 2004. Electronic data interchange: An evaluation of alternative organizational forms. Accounting, Organizations and Society 29(3-4): 227-241 Balogun, J. and G. Johnson. 2004. Organizational restructuring and middle manager sensemaking. The Academy of Management Journal 47(4): 523-549 Gellerman, Saul. "In Organizations, As in Architecture, Form Follows Functions." Organizational Dynamics, 19. American Management Association, 1990 Eadie, Douglas C. 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