The Importance of Organization Design - Essay Example

Word count: 2509 Organization Design Name: Institution: Table of Contents Table of Contents 2 Introduction 3 Managing people and organizations 3 Bega Cheese and the Mechanistic- Organic Continuum 5 Organizational values 7 Implications for managers in the long-term survival of Bega Cheese 8 Internal and external partnerships 8 Corporate social responsibility 9 Internal coaching 10 Diversification or economic sustainability 10 Conclusion 11 References 11 Organization Design Introduction Organization design is a strategy through which the management of any organization can ensure that it counters difficulties in a constructive and well thought out manner. One of the areas that a business must lay much focus on is competency in terms of management of staff and in the management of financial resources (Moorhead & Griffin, 2013). When a business operates under the terms of such a design, there is a possibility that such a business will be improving in terms of its reputation as a key planner in its areas of expertise and its corporate social responsibility (Pohlman & Gardiner, 2000). The main objective of this paper is to provide an explanation on how organization design acts a strategic vehicle that can undertake the work of an organization and eventually deliver performance. This will be through an understanding of the case of Bega Cheese limited and how it uses organization design to improve on its market share. The paper will also analyse Bega Cheese in relation to the mechanistic-organic continuum. In addition, the paper will study the long-term strategies by the management of Bega Cheese. Managing people and organizations The management of the individuals working in an organization and the operations of any organization are fundamental for the success of any business. This is because when the employees feel satisfied in terms their work related needs will be essential in helping the organization ensure the realization of its goals and objectives. It is important to note that any organization that faces challenges in terms of its management structure have the responsibility of improving their leadership and management skills as a way of increasing business efficiency and exploiting new business opportunities. Bega Cheese Limited for example, the management of people and organizations revolves around the presence of a disciplined force in the management of cash and capital. This means that the business had an efficient financial structure, which allowed it to plan for any probable opportunities such as the acquisition of other businesses such as the Tatura Milk Industries (Philips, 2014). Organizations are made of people. The individuals in these organizations have a responsibility of providing some form of leadership. In addition, these individuals also have the responsibility of formulating policies that are considered essential in the realization of the organization’s objectives (Williams & Champion, 2011). Bega Cheese limited is one of the organizations that consider its employees as an asset that is essential in the realization of the company’s vison. This is based on the realization that these employees are always learning new things and this enables the development of creative and innovative ways through which the making of cheese can be improved. In addition, such innovative have been essential in the transformation of the organization from mediocrity to greatness (Philips, 2014). Proper management of organization and people require that all the employees in this feel appreciated. This is especially when a group of leaders are credited for the success of a given intervention at the expense of other individuals who actively participated in the process. In other situations, unfortunate subordinates are often blamed as scapegoats for the misfortunes that affect organizations (Stein, 2010). Such activities largely affect the motivation levels of employees and they may result in poor performance of the said organization. Bega Cheese, as one of the most successful cheese companies in Australia views its employees as an integral part of its success and this provides an explanation why the business rewards its human resource with sufficient salaries and bonuses especially in situations where the said employees put more effort in the realization of the company’s goals and objectives (Philips, 2014). The dynamic environment of the business world necessitates the need for businesses to rethink on the best strategies of how an organization can effectively manage its employees and customers. This is because the success of the organization largely depends on the efforts that the business puts on its employees (Stein, 2010). These employees possess feelings and aspirations that need more focus to ensure that there is some level of satisfaction among these employees to ensure that they are able to provide sufficient assistance to their customers. The success of Bega Cheese lies on the fact that it operates in consolation with members of the staff and other employees within the organization. This system allows all employees to play a contributory role in the operations of the business. This enables them to have some form of ownership of the solutions or suggestions generated in solving problems or accomplishing some task within the organization (Philips, 2014). Bega Cheese and the Mechanistic- Organic Continuum Mechanistic and organic organizations are two extreme opposite ends of a continuum essential in the definition of organizational structure. They are representatives of ideal types of organizations that act as a benchmark upon which different organizations can be measured in relation to organizational design and structure (Moorhead & Griffin, 2013). A mechanistic organization for instance is efficient, rigid and foreseeable, centralized in terms of its decision making structure, vertical in specialization and has a flowing downward communication structure. This is contrary to an organic organization which is characterized multiple or weak hierarchical structures, low levels of formalization, horizontal specialization, decentralized decision making structures, adaptable to change and the ability of communication to flow in all directions within the specified structure (Moorhead & Griffin, 2013). The most outstanding difference between these organizations is based on the level of effectiveness between these structural models. Whereas mechanistic organisations seek to maximize efficiency and standardization of its operations, an organic organisation maximizes on satisfaction and development of the structures and the mandate of the organization (Radosavljevic & Bennett, 2012). When placed in a mechanistic-organic continuum, Bega Cheese Limited appears to be more organic than mechanistic in terms of its structural design. This is largely because information in this organization flows in all direction s considering that the perspective of every member of the organization is considered before making a final decision (Pohlman & Gardiner, 2000). The organization heavily relies on the satisfaction of its employees due to the belief that such level of concern is essential in the ensuring customer satisfaction. Development in terms of innovative ideas is also an area of concern for Bega Cheese considering that the company invests a lot of time and financial resources in development of its products to ensure that they meet customer demands (Philips, 2014). In addition, the company also conducts market research on local and international markets to ensure that the cheese products that it generates satisfy the healthy foods demands a cross different markets. The organization also embraces scientific research as an essential contributor in that body of knowledge, through such studies, the organization is able to hold an essential place in the market and is recognized as an organization involved in the production of food that is safe for human consumption (Philips, 2014). The fact that Bega cheese is less bureaucratic in operations is a clear definition of an organic rather than a mechanistic organization. This does not however mean that the management of the organization is loose and inefficient; rather, the organization is largely managed by a team instead of individual managers (Pohlman & Gardiner, 2000). The organization is managed in accordance with its robust corporate values, which not only demand an effective relationship between the organization and its suppliers but also a mutual relationship with its customers. The management team for instance is inclusive of a farm service team, which aims at providing necessary support to dairy farmers in Australia to ensure that they realize their intended goals and objectives (Pohlman & Gardiner, 2000). In addition, this team engages in an active interactive process with farmers especially in the management of its milk supplies and ensuring that the quality of milk is in accordance with the specifications of the organization. This is inclusive of the levels of hygiene and the control of any hazards that may accompany milk production in Australia among other roles (Pohlman & Gardiner, 2000). Organizational values As an organic organization that operates on robust values, the Bega Cheese encourages its employees to develop knowledge and expertise outside their areas of specialization. Such developments ensure that knowledge and expertise are decentralized making the organisation a career development centre. Through such structures, employees can advance their level of expertise by exploiting the opportunities available to ensure that they get high levels of experience in the areas they choose to concentrate on (Plunkett, 2013). In addition, whenever career opportunities arise within the organization, the management ensures that it advertises these jobs internally to tap all the available expertise before advertising externally. The company also celebrates on its level of awareness on gender related issues, which allows it to offer equal opportunities to both women and men with the appropriate skills in the workplace (Radosavljevic & Bennett, 2012). The organization also prides itself in the provision of appropriate working conditions for its employees. This is largely because the low degree of work specialization allows employees to take a broad perspective of the tasks that they are expected to execute. Despite the fact that the chain of command may not be rigid, employees think widely about their responsibilities in the management of the organization and this brings out the organic nature of Bega Cheese. A value driven organization does not engage in malpractice due to the awareness that there exists structures that are essential in guiding the company towards transparency and accountability and this explains why Bega Cheese has a very high reputation in the Australian food market. Implications for managers in the long-term survival of Bega Cheese Internal and external partnerships The long-term survival of Bega Cheese reveals numerous implications to the management in numerous ways. One of the areas that will present a challenge is that of the ability of the management to ensure that it forms partnerships with different stakeholders within and outside its area of specialization. The greatest challenge for the management will be forming partnerships with the co-workers, which is inclusive of the management and the employees, as this will require that the management break the boundaries to enhance the sharing of ideas and capital (Moorhead & Griffin, 2013). As the business world becomes complex integration, of human resource will become a necessity, as this will demand that when an organization is successful the entire organization is rewarded and in times of difficulty, every member of the organization is expected to take responsibility and work toward reviving the organization (Plunkett, 2013). The other partnership necessary for the long-term survival of the organization is building partnerships outside the organization. As Bega Cheese will be expanding in terms of the amount of goods it is able to produce, it will shift from relying on the domestic and a few international markets to supplying products to a wide range of customers (Moorhead & Griffin, 2013). As the suppliers of products, its relationship with the customers will continue to evolve and this will require the management to strategize on how the organization can be more of a partner to the customers than just salespeople (Pohlman & Gardiner, 2000). This means that the organization will have to develop a deeper understanding of customer needs. This will also change the attitude of the organization with other stakeholders such as suppliers and financial institutions among other institutions. Such partnership will define how the organization will manage its profit margins, conflict of interests while at the same time operating according to the defining values and principles (Moorhead & Griffin, 2013). Corporate social responsibility The long-term survival of the organization will also depend on how it handles its corporate social responsibility on important areas such as the environment. Currently, through its environmental management system, the organization helps farmers in irrigating their farms, monitoring the condition of the soil among other responsibilities. However, as part of its social responsibility long term survival will require the management of the organization to strategize on the best ways through which it can engage in environmental conservation in this period of climate change and global warming (Vandekerckhove, 2006). This means that Bega Environmental Management System must increase its mandate to focus on other environmental factors such as the use of alternative fuel that is safe for the environment, become an active participant in the conservation of forestland and advocate for the use of organic material in the production of agricultural material and food (Vandekerckhove, 2006). Internal coaching For any organization to ensure that it serves in the long term it must be dynamic enough to embrace change.one way through an organization can drive and embrace change is through the introduction of internal coaching programs (Phillips & Gully, 2012). This will ensure that the organization grooms a group of leaders that can take over the management of the organization in future (Stein, 2010). Through such coaching programs, the management will ensure that the current leaders engage in the development of potential leaders whose mandate will be to provide more energy and insight in the management of the organization (Phillips & Gully, 2012). It also allows for diversity considering that a younger generation of leader with the necessary experience can introduce novel ideas on how the organization should be managed. Coaching also provides the organization with a group that will ensure continuity even after the pioneers of the organizations will have retired. The introductions of a coaching culture will also ensure that the organization operates according to the values and principles that define its operations (Phillips & Gully, 2012). Diversification or economic sustainability The ability of the management to ensure that the organization is diversified in terms of its products will also be essential to ensure that it is competitive enough in the cheese market (Hess & Kazanjian, 2006). Currently one of the competitive advantages for Bega Cheese is that it adheres to the standards of scientific research in production. However, through continuous market research and understanding of customer needs, the organization has the responsibility of ensuring that it introduces new products to maintain or increase its customer base (Hess & Kazanjian, 2006). In addition, such a strategy will also help the business in expanding into other areas hence ensuring that it creates employment as part of its responsibility and maintains its high competitive levels within the market (Hess & Kazanjian, 2006). Conclusion The organization design of Bega Cheese allows the business to operate as an organic structure which makes it less bureaucratic but more satisfactorily and developmental in terms of its operations. The success of any business is highly dependent on its ability to satisfy its employees, customers and suppliers. This can be realized if the organization forms partnerships with these stakeholders. Such partnerships will help in the management of different demands and ensure that the decision made by the organizations is aimed at not only profiting thee stakeholders but also the organization. It is important to note that in the process of embracing change and ensuring long-term economic stability, an organization such as Bega Cheese must operate according to its defining values. References Hess, E & Kazanjian, R. (2006) The Search for Organic Growth. Cambridge University Press Moorhead, G., & Griffin, R. W. (2013). Organizational behavior. Mason, Ohio: South- Western. Philips, A. (2014). Bega Cheese Limited: Bega Cheese Taste Victory. Source: http://www.businessreviewaustralia.com/reports/bega-cheese-tastes-victory Phillips, J., & Gully, S. M. (2012). Organizational behavior: Tools for success. Mason, OH: South-Western Cengage Learning. Pohlman, R., & Gardiner, G. (2000). Value driven management: How to create and maximize value over time for organizational success. New York: AMACOM. Plunkett, W. R. (2013). Management: Meeting and exceeding customer expectations. Mason, OH. Poole, M. S., & Van, . V. A. H. (2004). Handbook of organizational change and innovation. Oxford, UK: Oxford University Press. Radosavljevic, M., & Bennett, J. (2012). Construction Management Strategies: A Theory of Construction Management. Hoboken: John Wiley & Sons Stein, G. (2010). Managing people and organizations: Peter Drucker's legacy. Bingley: Emerald. Vandekerckhove, W. (2006). Whistleblowing and organizational social responsibility: A global assessment. Aldershot: Ashgate. Williams, C., Hall, I., & Champion, T. (2011). MGMT. Toronto: Nelson Education. Read More