Organisational Design and Development - Assignment Example

ORGANISATION DESIGN & ORGANISATION DEVELOPMENT By Location Organisation Design & Organisation Development Introduction Organisation design is a process that requires the integration of people, technology and information in an organization through stipulated guidelines. The process of organization design focuses on improving both the technical and people aspects of an organization (Cox2014, p. 212). Organisation design identifies the areas that are not functioning as required in an organisation and implements changes to them. The areas that are likely to be dysfunctional can be in the workflow, systems, procedures, and structures. Organisation development on the other hand, is a research field, practice and theory that focus on expanding knowledge and the effectiveness of people (Glanz, Rimer, & Viswanath 2008, n.p). Organisation development dwells more on ensuring that people achieve effectiveness for an organisation to achieve its overall success. Organisation problems can be a set of challenges that hinder an organisation from working at maximum efficiency. The problems could be resulting from poor leadership, which affects the structure of an organisation or the systems established within the same. W.L Gore Associates is a company within the textile industry that applies a unique leadership format. The company does not have a hierarchical system of leadership, which is an ancient command and control system. The challenge that this brings is that there is familiarity when it comes to leadership and team members are allowed to act as they will. Based on this, this essay will focus on this problem and use the functional structure and the classical organization theories in addressing the same. The Organisation Problem Gore Associates believe in having a horizontal leadership structure in which all employees are equal and do not have to be answerable to anyone. The flat leadership also allows for an inclusive decision-making process where team members have to be consulted before making important decision making (Ruairc, Ottesen, & Precey 2013, p. 116). The company’s CEO also focuses more on being friendly to the employees rather than on getting the job done. The company also works under the assumption that the employees hired are aware of their responsibilities, meaning that supervision should not be a key practice. Employees have the autonomy of planning their work schedules as long as they get the work done, which at times can be chaotic. Essentially, there is no system of operation that employees have to follow meaning that everyone is their boss (Obolensky 2014, p. 72). When it comes to the CEO, the employees get to choose who should be in charge, meaning that it is not on merit. For an organisation to be run an effective manner, the company’s head must be knowledgeable so as to steer the company in the right direction. Leadership does not only mean that the senior most leaders must be able to relate to junior team members, but they should have the expertise and experience that comes with the title. Further, organisations need to have departments so as to make the human resource function operate at full capacity. Gore Associates do not have departments where employees can work in as per their academic qualifications and expertise. Departments help in complementing the hierarchical system of management where departmental heads report to their superiors. Many researchers advocate for the treatment of team members as partners within organisations, but this requires the application of the administrative intervention. The inclusion of employees in the decision-making process is key as it helps in obtaining suggestions that can be helpful in future and essential to solving current problems. However, a top management should be present so as to make the final decision where at times it should be immediate. Including employees in final decision-making can be time-consuming and the entire lot might never agree on one thing. When a hierarchical system of leadership exists in an organisation then those in charge of decision-making become responsible for the actions they take. A horizontal system that exists at Gore Associates might not have anyone to take responsibility if the organisational goals are not achieved. Solving this Problem through the Functional Structure The functional organization structure is one that takes the hierarchical form in which the categorizing of people is as per their areas of specialization and a functional manager supervises them (Drury 2004, p. 838). Functional managers are mostly individuals that have specialized in a certain field that makes them suitable for leaders. In many cases, grouping individuals according to their competencies allows a functional manager to utilize their skills to the maximum to achieve the set organisational goals and objectives (Schwalbe 2010, p. 49). A functional organizational structure requires the existence of departments such as the sales department, finance department, administration department, and customer service among a list of other departments (Sanghera 2007, p. 26). These departments are essential as they execute their specific roles to the maximum because those handling this function are knowledgeable in this field. Additionally, having a functional organization structure helps in easing the communication flow in a vertical manner that enhances uniform performance. Certain vital elements within a department such as resource allocation, decision-making, and budget allocations become the responsibility of the functional manager, as the other team members focus on getting the job done (Mathur 2011, p. 142). A functional organisation structure influences high performance because of the channelling knowledge and skills in the areas that they are applicable. Further, having a functional organisation structure influences accountability in the organisation because of people having fixed responsibilities. Employees also report to their specific functional manager in case they have any issues of concern, which makes a communication to be easier and more effective. When employees are allowed to put their competencies into good use, this is a benefit to the organisation because they will use their skills in achieving the organisational goals. A functional organisation structure helps employees to advance their careers and gives them adequate experience that they can carry on with other organizations. Additionally, this structure also helps in preparing employees for leadership roles because of the experiences they obtain through learning from a competent functional manager. Compared to the horizontal structure where the competent individuals cannot be distinguished from those that are not, the functional approach is the best alternative. Classical Theories that Help in Explaining an Organization and Its Structure A classical organization theory emerged in the 20th century and it was a merger of the bureaucratic theory, scientific management and administrative theory. The basis of the scientific management approach was on work planning in an attempt to improve efficiency, specialization and standardization. For productivity to increase based on this approach, employees and the management team had to develop mutual trust (Montana & Charnov 2008, p, 15). Fredrick Taylor was the founder of this school of thought and his theory had four main principles: 1. Finding the best way to performing each organisational task 2. Carefully placing workers in the task areas that suit them 3. Closely supervising them, and apply an effective reward and punishment schemes to motivate them 4. The task of management is that of planning and controlling the organisation The bureaucratic approach was a theory by Max Weber, which factors in an organisation as being part of greater society (Miller 2009, p. 22). Weber’s theory dwelt on the establishment of clear demarcations on authority and control through the existence of a hierarchy structure. According to Weber, a hierarchy structure helps in ensuring that there exist stability and uniformity of practice within an organisation through the division of labour. The third theory included in the classical theory approach is the administrative theory that was by Henry Fayol that consisted of several principles of management (Murugesan 2014, p.15). Management serves as a vital organ in this theory because of the functions attached to it such as organizing, planning, training, coordinating, and commanding of employees. The principles include specialization, discipline, authority and responsibility, initiative, remuneration of personnel, equity, and centralization among a list of other principles. A classical organization approach is an applicable approach that Gore Associates can apply as its organisation design because it is effective based on its focus on the structure of the organisation. Classical organisation theory when implemented in an organisation can be helpful in addressing issues related to cost reduction, efficiency, specialization, quality improvement, and the managing of worker relationships. The application of this organisation management approach is important as it allows an organisation to have a clearly defined hierarchy with management levels. The top management officials have the responsibility of creating long-term goals for the organisation, which all team players should work towards achieving. On the contrary, Gore Associates should also develop departments as part of the hierarchy where each of them will also be able to craft their goals that would help them work towards achieving the overall organisational goals. Supervision in any organisation is key, in which Gore Associates does not seem to understand its relevance. In essence, oversee the completion of day to day tasks within an organisation and also implement management decisions responsibly and effectively. Supervisors influence discipline and responsibility among junior employees, which should not be a function of the top management. A hierarchical system helps in defining the roles of each within an organisation where people do not find themselves taking charge of responsibilities that do not belong to them. Division of labour is the other element achieved through the classical organisation design as this will allow for projects to be divided into smaller tasks that are manageable. When employees work on broad projects, the time allocated to the projects tends to be unspecified and employees lack commitment towards achieving them (Daft 2015, p. 119). Through a hierarchy system, Gore Associates will be able to clearly outline the responsibilities of the employees and the expectations of the organisation about their productivity. Moreover, this structure allows employees to specialize in their areas of expertise whereby their skills are put into relevant use rather wasting them away in the horizontal structure. Labour division in this approach leads to increased efficiency in productivity because multitasking will not be possible. In the horizontal structure, productivity levels might be low because employees have to perform more than one task where some of these tasks they have no skills in. Employee motivation is one of the effective ways that businesses can use as a way of increasing productivity because a satisfied lot always produces better results (Cummings & Worley 2014, p. 378). In the case of Gore Associates, there is no management team that can be able to determine the best ways to reward employees when they perform well. Also, the employees that perform dismally are also not punished, which further instils the culture of poor performance. However, when the hierarchy structure is put in place, employees will have to report to their supervisors were rewarding or punishment shall be done appropriately. The classical organisational design requires that an organisation has autocratic leadership that will be beneficial in the decision-making process. Autocratic leaders also direct and organize employees for them to work towards the achievement of the organisational goals, which should be the core of any business. As much as the inclusion of employees is essential in motivating them towards being loyal to the organisation, it can also make the decision-making process to take much time in the horizontal structure. An autocratic leader in the classical organisational design should not have to consult employees on sensitive decisions and does not have to be answerable to them. How the Hierarchy System can help in Organization Development Organization development is a behavioural scientific approach to influencing change in an organisation. Organisation development commonly abbreviated as OD involves the inclusion of theories, activities and processes that should all focus on improving an organisation. Organisation development involves the implementation of planned approaches to improving and changing the dysfunctional structures and processes within an organisation. OD is a holistic approach to influencing change within an organisation as it mainly focuses on changing thoughts and behaviour within all levels of an organisation and entities. Kurt Lewin was one of the pioneers of this approach where his research findings were that allow individuals to discuss among themselves about the group and individual behaviour and receiving feedback was the most effective way of learning. Lewin advocated for the use of such discussions rather than individuals receiving lectures on how they should change their behaviour. Mostly, the process of organisational change and development has to include the conducting of sensitivity training so as to create awareness on how to treat individuals (Eldredge et al 2011, n.p). Information sharing between managers and employees was also critical as these two parties can discuss the avenues they can use on the road to improvement. Based on this, a set of managers that have the authority should be established for this process to be conclusive. The organizing of discussions between the management side and employees can help in bringing up of solutions that can help in navigating change in an organisation. Organisation development calls for social interaction between the management team and the employees in both formal and informal ways for the benefit of achieving organisational goals. OD programs are usually long term and they focus more on the process of achieving change than on the challenges involved in the same. Essentially, OD focuses on organisations that have healthy behaviours in which people will be able to anticipate and prevent challenges when they come, meaning that its emphasis is on problem preparedness for employees. Gore Associates should also apply this approach, which can be successfully implemented if there is a competent management team in place. Conclusion In summary, the organisational structure that Gore Associates has been using has been working for the company, but change is needful for the business to be able to perform at high efficiency. The company lacks a hierarchy system of leadership where employees will be able to have supervision and individuals that they can report to concerning the status of projects. Having competent managers managing the company is necessary as they will be able to steer the organisation in the direction that it should go. Helping solve the hierarchy issue that does not exist at Gore, the functional approach is also relevant because it allows for the creation departments headed by functional managers. The functional structure allows employees to specialize in the fields that they have been trained in, which in turn will increase efficiency and productivity for the company. The classical organisation approach that comprises of scientific management, administrative theory and the bureaucratic approach is highly recommended for this organisation this system helps in increasing productivity. Familiarity exists within Gore Associates, which is not healthy for any organisation as this tends to inhibit employee performance and low discipline levels. The classical management approach deals with discipline issues and enforces responsibility among employees because the actions they take either attract rewards or punishments. Organisation development is a system that Gore Associates should introduce as this will allow employees to interact with their supervisors and managers for the good of the organisation once a hierarchy system has been established. Organisation development is an essential practice as it helps in changing employee behaviour without being harsh on them, but allowing them to share with each other where change is necessary (Inoguchi & Purnenda 2011, p. 44). When Gore Associates adopts the hierarchy system of leadership, decision making will be easy and specialization will also increase because the departments formed shall have competent managers running them for the good of the organisation. Bibliography Bartholomew, LK et al ,2011, Planning health promotion programs an intervention mapping approach, San Francisco, Jossey-Bass. Cox, SA, 2014, Manging Information in Organizations: A practical Guide to implementing an Information Management Strategy, Palgrave Macmillan. Cummings, T & Worley, C 2014, Organization development and change, Cengage Learning. Daft, R 2015, Organization Theory and Design, Cengage Learning. Drury, C 2004, Management and cost accounting, London, Thomson Learning. 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