Organisational Structure and Performance Management in Manufacturing Organisations in China - Example

The paper "Organisational Structure and Performance Management in Manufacturing Organisations in China" is a perfect example of a business capstone project. The aim of this research is to ascertain the effect of organisational structure (OS) on performance management (PM) processes, systems and practices in an organisation. Performance management is a multifaceted process since it could focus on the performance of the company in general, employees, departments, or processes that are involved in the building of a service or product. Organisational structure the implicit and explicitly institutional regulations and policies that are aimed at providing a structure where different work roles and responsibilities can be delegated, controlled, as well as coordinated.

The organisation structure (OS) will be the independent variable in this research h, while performance management (PM) would be the dependent variable. The proposed methodology would utilise a survey, with a sample of 300 participants, who would be CEOs of Chinese manufacturing organisations. The study population would be the manufacturing industry in China.

Table of Contents

CHAPTER 1

1.1 Background of the study

Performance management is an important process in organisations across the industry since it constitutes activities that play an important role in ensuring that goals of the organisation are being met in an effective, as well as efficient manner. Performance management is a multifaceted process since it could focus on the performance of the company in general, employees, departments, or processes that are involved in the building of a service or product. The strategic objectives and priorities can be achieved through effective performance management processes.

Organisational structure, on the other hand, constitutes the implicit and explicitly institutional regulations and policies that are aimed at providing a structure where different work roles and responsibilities can be delegated, controlled, as well as coordinated. It defines the departmental structure, supervisory relationships, and the workflow within a company. It is also the way power and responsibility are allocated inside the organisation, as well as how to work procedures are carried out by the members of the organisation. This research proposes a critical examination of the various effects and relationships between organisational structure and performance management in the manufacturing sector.

Performance management, according to Bogicevic & Janicijevic (2009), plays a key role in the efficiency and effectiveness in any organisation, and more so in a manufacturing organisation. This has attracted significant interest from researchers, who have investigated the various roles of this variable in the overall organisational success. The vitality of this variable in businesses and firms led to more varied investigations on the various variables that might affect organisational success both directly and indirectly, and in that respect, researchers such as Connaway & Powell (2010) among others attempted to ascertain how organisational structure might affect or relate with performance management. Gavrea, Ilie & Stegerean (2011) defines organisation structure as the anatomy of a business or an organisation since it provides the foundation and the footing within which the company functions, and according to this author, its effect on the organisation members is significant.

Performance management according to Karami, Dolatabadi & Rajaeepour (2013) involves managing employee and system performances, and this facilitates the effective delivery of operational and strategic goals, which according to this researcher, have an immediate and clear correlation between using performance management systems or programs and improved business and organisational results in general. The fact that performance management is clearly an important process in any organisation implies that factors that affect this process are also of significance to the organisation and thus, must be focussed on, and such factors include organisational structure.