Types of Organizational Theories Issues - Case Study Example

Customer’s name Customer’s course: Subject Advisor: Date: Marine Five Star Hotel Workplace report: Introduction The following report covers types of organizational theories, roles of organizational structures, how Marine Five Star Hotel is managed, how I expect it to be run, recommendations and ends with a conclusion. A hotel industry is one of the busiest and sensitive sectors to work in. Staff, customers, and equipment need to be handled with ultimate care. The organizational structure needs to be applicable with ease due to competition in the sector, (Richard & Daft, 2009). In addition, due to the involvement of the job, the employees need to be motivated and empowered (Ashton, 2004) so as to keep the job spirit and glue the customer to a particular hotel. Organizational theory looks at the structure within a particular organization; there are several organizational theories such as modern, neoclassical, classical, traditional and open systems organizational theory. The organizational structure involves the way companies organize their departments. In this regard, smaller companies assume flatter organizational structures which include few management levels while large companies take several types of organizational structures (Richard & Daft, 2009). Types of organizational theories I. Classical theory Classical theory focuses on the formal perceptions related to workplace efficiency and management. Taylor’s scientific approach is found under this theory. Taylors approach, emphasis that mutual trust between employees and management increases output. In addition, Webber’s bureaucratic approach falls under this theory too, and it gives an explanation on the procedures, rules, hierarchy and impartial importance of personnel decision (Richard & Daft, 2009). II. The Neo-classical theory The Neo-classical theory looks at the worthiness of a person in an organization. Theories under this category use the workers as functional piece of the organization; however, they disregard individuality and factors of human nature. Neo-classical theory relates workers and their social elements in place of work. It believes that productivity increases depending on the morale of the employees (Richard & Daft, 2009). To achieve this, manager or the head of a particular department have to maintain close relationships with the employees at a bit personal levels and also there should be a procedure to reward and recognize performance by different employees. III. The Modern theory Modern theory is further split up to several approaches; socio-technical approach, situational or contingency approach and the systems approach. a) Situational or contingency approach states that all situations and organizations do not have universal guidelines. It also emphasizes that before determining the best organizational approach, environmental factors need to be put in considerations. Such factors to consider should include economic circumstances, technical, political, legal or social (Donaldson, 2001). As per this approach, the most productive organization has the ability to adapt to its environment. b) Socio-technical approach is a modern theory that looks into three organizational elements i.e. the workers, consumers and tools. The workers form the social system while consumers who make up the external environment do consume the services and the product produced by a particular organization. The resources, tools, and knowledge they are essential and are needed to do the job, therefore, making work easier. For any organization to succeed and achieve highest productivity, these three systems remain vital. c) The systems approach is a modern organization theory, and it breaks structure into subsystems that are mutually dependent. These systems are connected through decision making, balance and communication. Each system includes physical environment, behavior patterns, the roles and individual employees. This approach combines the neo-classical and classical theory elements (Donaldson, 2001). The systems approach looks into the organizational structure, the employees and how it should adapt to a particular environment. IV. Traditional theory Traditional organizational theory was taken from bureaucratic-style structure and was established in the late 19th century it calls for one bureaucratic head managing several bureaucracies. The organizational head takes the central authoritative role of presiding over other managers who are below him. Managerial duties and responsibilities can be broken down to controlling, staffing, organizing and planning. This type of organizational structure, however, does not actually credited motivations, and human skills to increase production in workforce. Employees are less valued as people, who have managerial skill or have an ability to offer self- govern input. Business strategy and direction are always given from the top, and the manager carries them out (Richard & Daft, 2009). V. Open system theory Open system theory unlike traditional organizational structure which does not, take into account human factors in workforce like motivation and emotions open system acknowledges this factors. Companies and institutions acknowledge employees driving force of cultural and social motivators as they increase productivity at all managerial levels. In this theory, businesses does not work autonomously they involve facilities, subsidiaries, divisions and labor. It does not have a single overseer manager but includes other managers in charge of different operations as a result it recognizes motivation of its member (Miller, 2008). This theory gives more importance to outsource facilities and managers increased power in business operations. Moreover, it embraces the ideology that every company, industry and institution remains unique and requires unique system to tackle its needs. Roles of organizational structures Communication Big companies involve larger management levels and, therefore, the best mode of communication is from top to bottom. The executive do create certain operational procedures which are in turn passed to the managers and directors. The managers then pass and explain the procedures of operation to the part time employees or the subordinates (Miller, 2008). Decision making Organizational structure creates a room for decision making. In most cases, Companies will structure their organization in a way that it makes the best decision possible. For example, in order for a company to make quicker decisions locally it may choose to decentralized its marketing or put its marketing managers into different regions of the companies. Harnessing experience Harnessing experience is another role of the organizational structure. This virtue is natured from the fact that when talents of a similar work join together there is a synergism that exists. Companies may choose to arrange their business depending on specific functions such as engineering, finance, accounting or marketing. This essence of departmental grouping ensures total harvesting of groups experience inured to accomplish a specific task. Efficiency As a role of the organizational structure, companies need to make the most of various resources. This is because duplication of job duties and raw materials remains inefficient. Therefore, a company will structure its organizational as per the services and products that it offers (Bennet, & Robinson, 2003). How I expect Marine Five Star Hotel to be managed I advocate for open-system organizational structure to be applied in my company. I would expect Marine Five Star to take into considerations labor force, tools and equipment as factors of production. The company should realize that people have different capabilities and talents. These factors, however, sometimes do not tally with level of education because some people may be educated but unable to apply the same in the work place (Ashton, 2004). In addition, the company should also take into consideration the amount of work done by every single individual whether learned or not since the main goal of every employee is to make a reasonable production in the company. Moreover, there is a need to refresh employees’ knowledge now and then or depending on the upcoming demands of the company. This will increase employees’ motivation and rejuvenates their day in day out working energy and desire to achieve the best for the company (Ashton, 2004). The company should also recognize and reward those employees with outstanding performance per annum. It should, however, seek to find out the reasons for the low standard performance of some employees and also find out the best way to help them rather than sacking them. Deployment in the company should also be considered especially where an employee is either not doing the best in his post or show outstanding qualities to control and run another department. To achieve its objective and accrue excellent results, staff appraisal and departmental appraisal should be carried out. Each staff should remain at liberty to express him/ herself , state the challenges is facing as well as the company which in turn the employee will give some of perceived solution to the challenges (Bennet & Robinson, 2003). The managing board in turn should sit down and analyse the appraisal taking into consideration every fine detail and prioritize them according to their weight and the impact they have to the company and implement where necessary. This form of the organizational structure will for sure take into account the roles of organizational structures effectively and without harassment. How Marine Five Star Hotel is managed In the Marine Five Star Hotel where am the marketing manager, there are some aspects of the organizational structure that need to be looked into and reviewed or embraced the way they are. Marine Five Star Hotel embraces the traditional organizational theory (Miller, 2008). The hotel has one CEO overseeing all the other managers this form of leadership is quite dictatorial. As a marketing manager is like am just a tool in the department rather than a leader. Am told what to do and rarely does the CEO consults with me on how best my department can be improved. Is, however, noting that employees try as much as they can to achieve the companies objectives but mostly through fear and harassment (Bennet & Robinson, 2003). There are suggestion boxes set in strategic corners of the hotel were clients drop their complaints or suggestion, however, if such comments happen to be negative about a certain employee he faces sacking without notice. In general, the employees face job insecurity. There is a lack of motivation and empowerment in the company. Having been in the business for three years now has not seen any employee being taken for a part time course or refresher course. I believe knowledge is power, and also education expires with time and, therefore, believe refreshing the knowledge is quite vital for the productivity of the company. The company follows strictly to the job specifications of an individual a fact I also differ with. This is because as much as job specification exist, there are also personal talents and inherent skills that sometimes go beyond books. I think such talents when realized in an employee a deployment to a department which earnest the employee’s educational knowledge and personal skills will remain importance to the company (Miller, 2008). The way the company is organized now as much as there is drawback still this structures houses some advantages. The CEO bears all the responsibilities of making a decision this fact makes decision making easy and less time consuming, less costly as the decision made remain undebatable. It is, however, noting that many employee in this hotel remain unknown to most of other department and to other managers due to lack of departmental managers reaching down to different employee in different departments. This organizational structure offers a high degree of demoralization since it does not value people and their essentiality to the company. It only focuses on customers and production (Richard & Daft, 2009). As a manager, I do not feel the pride of my sector since am also not being used to the maximum of capability and being challenged by my job because most of my work is done by the CEO and sometimes does it unexpected manner. The other part of it is that the CEO is more likely to condemn when things are not going on well but does not realize to reward when activities are carried effectively and efficiently. Deployment to other departments is a common phenomenon here with no apparent reason and someone may as well be taken to a department where he/she is not competent in. There is also departmental reshuffling that takes in place without the manager’s notice. This kind of dictatorial leadership in my opinion is an organizational structure that I would less embrace as an employee (Ashton, 2004). It is, however, noting that theories differ from practice (Ashton, 2004). This is because as much as an organizational structure such as open-system organizational theory advocates for freedom of interaction and expression between managers and employees at some point will call for dictatorship by the manager when things seems not to work as they should or when his department does not achieve its target of production. Recommendations As per Marine Five Star Hotel current organization I recommend that it reviews its current structure together with its members and board of directors. This can be comfortably done through appraisals or use of external consultants. The work in the hotel is quite a lot and, therefore, the CEO need the rest of the managers in controlling, planning and passing of information to the CEO and to the Subordinates (Bennet & Robinson, 2003). This protocol does not reduce the CEO from being the overall boss. However, it enhances the expression of feeling of the employees and the other managers and builds respect from one employee to another. The employees are not just mere machines they need to be motivated and empowered in the different areas they work in. The institution should also come with a form of rewarding the employees and correcting where mistakes occur without coursing them (Ashton, 2004). Moreover, the company needs to adapt strategies which replaces sacking of employees. In fact, cases which are serious should be referred to the disciplinary committee and a warning given rather than sacking an employee. A company which looks forward to sack its employee will in most cases rack behind in production since every time will have several new employees on board and by the time they adopt to the new working environment they are sacked. In addition, this kind of practice lowers trust of the company by the customers since they will also feel insecure always meeting new faces (Miller, 2008). Conclusion To conclude is appropriate for an institution to adopt a certain organizational structure depending on the type of company. However, is also essential for such a company to find out the practicability of the structure and its drawbacks that it may come along with towards production. References Ashton DN. (2004). The impact of organizational structure and practice on learning in the workplace. Academy of management learning and education, vol.8, pp.43-53 Bennet RJ. & Robinson SL. (2003). The past, present and future of workplace deviance research. In J. Greenberg (Ed), Organizational behavior: the state of science (2nd Ed, pg. 247-281). Mahwah, NJ: Erlbaum Donaldson L. (2001). The contingency theory of organizations. Retrieved from http://www.ehow.com/list_6811366_theories-organizational-structure.html, May 7th, 2012 Richard L. & Daft (2009). Organization theory and design. Retrieved from http://www.ehow.com/list_6811366_theories-organizational-structure.html, May 7th, 2012 Miller K. (2008). Organizational communication: approaches and processes. Retrieved from http://www.ehow.com/list_6811366_theories-organizational-structure.html, May 7th, 2012 Read More