Organization Design - Research Paper Example

? Organization Design Contents Contents 2 Introduction 4 Literature Review 4 Foundations of organization design 4 Designing of Individual Position 5 Designing of the Organizational Superstructure 6 Fitting the Organizational Design to the Situation 6 The Machine Bureaucracy 7 Professional Bureaucracy 7 Methodology 8 Findings and Analysis 9 Organizational Design 9 Designing of Individual Position 10 Designing of Effective Superstructures 10 Fitting the Organizational Design to the Situation 11 Machine Bureaucracy 11 Professional Bureaucracy 12 Conclusions 12 References 13 Introduction Business organizations behaves like a living organism constructed by large number of individuals having different types of skills and potencies. These people having similar potencies tend to work in groups helping in the formation of departments. The business organizations in order to compete with the external competitive business environment needs to design its organization structures in a potential manner. Moreover with the rise in the process of internationalization the business organization needs to strategically design its structures so as to fit the needs of the different nations and socio-economic environments. Business organizations also need to redesign its structures so as to meet the changing situations to which they are subjected (Robbins, Judge and Sanghi, 2010, p.234). The paper in this connection firstly tends to draw a theoretical understanding of the different parameters which needs to be kept in mind while designing the organization structures. It also reflects on two types of organization structures which are created in order to meet the needs of the different situations. Different case studies are presented to render a practical review of the different organizational theories discussed in the paper in relation to organizational design. The paper in regards to the analysis would tend to depend on secondary research attributes which would help in enhancing the quality of the research conducted. Literature Review Foundations of organization design In the light of understanding the elements which need to be kept in mind for formulation of organization designs, Robbins, Judge and Sanghi (2010) state that an effective organization structure helps in the division, grouping and proper coordination of the business tasks. Thus the structure of a business organization need to be conducted based on six essential elements which can be stated as follows. Firstly the organizational design can be based on the degree of work specialization of the organizational employees. Secondly the different organizational tasks needs to be grouped based on like factors forming departments. Thirdly the organizational design needs to be based on the job hierarchy roles in the concern defining the reporting authorities. Fourthly the organizational design needs to understand the number of subordinates who can be managed by one managerial head. Fifthly the organizational design differs in organizations in regards to centralized and decentralized decision making paths. Finally in the sixth case organizational design also differs based on the standardization of work rules in the concern or departments (Robbins, Judge and Sanghi, 2010, p.234). Designing of Individual Position The business organization performs in an effective manner through the collective relationships of large number of employees based along different units and departments. In this regard, Aart (2005) relates that the organizational machinery performs effectively based on the designing of individual positions in the concern. The organic approach to organizational design suggests that the people in the organization work as vibrant units adapting themselves to the external changes. The organizational vision and mission objectives and policy changes needs to be communicated effectively to the different individuals in the concern. These individuals need to coordinate with each other to help in the achievement of organizational goals. Thus the different individuals or groups working in a concern needs to be assimilated and trained effectively to pursue the holistic organizational mission. The organization thus must not be seen as an isolated entity; rather it must be visualized as an organic whole (Aart, 2005, p.2). Designing of the Organizational Superstructure Fox, Schwella and Wissink (2004) state that an organization to effectively pursue the organizational mission and objectives needs to design its structures accordingly. The structures based on grouping of tasks and organizational potencies act as superstructures helping the organization accomplish its mission. Designing of organizational superstructures is conducted based on a process in which the organizational objectives thus framed are percolated throughout the concern in the form of top down structure. Further the grouping of similar tasks and goals are done through the formation of separate departments in which employees grouped under work specializations are assimilated to help pursue definite objectives pertaining to sales, operational and financial functions. Designing of superstructure systems in the organization renders due complexity in the workforce. The designing of vertical and horizontal structures in the organization are conducted based on centralized or decentralized decision making policies helps in the effective construction of organizational superstructures (Fox, Schwella and Wissink, 2004, p.87-88). Fitting the Organizational Design to the Situation Theodoraki (2007) observes in this regard that the different organizational structures are created in order to meet the needs of the specific organizational and cultural situations for which they are made. Thus organizational structures need to be changed and adapted to the specific needs for which they are created I the business organization. The business organization cannot run as a static entity. Rather it needs to de dynamic and adaptive to external changes. Henceforth organizational structures needs to be super built in order to help the concern enhance its internal strength to counter emerging contingencies. Interesting configurations needs to be developed in this account where the internal organizational designs would be developed keeping in view the external changes. Thus organizational structures which are considered consistent enough may not suit the needs of specific changes in the external environment of the concern based on which new configurations needs to be brought about. Thus situations and organization designs go hand in hand in meeting salient business objectives (Theodoraki, 2007, p.23). The Machine Bureaucracy The organizational structures thus can be built in terms of various configurations one of which is regarded as machine bureaucracy. Oliviera (2011) mentions in this account that the business configuration which is built on formal policies and rules set as organizational guidelines is regarded as a form of mechanistic bureaucracy. Thus machine bureaucracy bears in it the traits which can mostly be founded in regards to bureaucratic control which is mainly found in regards to running and controlling of the state. Other than the incorporation and sustenance of formal rules and procedures the business organizations operate based on centralized decision making activities. Moreover workgroups are formed based on the system of work specialization where people possessing like competencies and skills are grouped together in specific departments. This reflects a typically conservative business model in which the business organization incorporating such system is found to produce standardized products with fewer or no variances or options. Thus this system best suits in cases where the external business environment is static in nature (Oliviera, 2011, p.31). Professional Bureaucracy The professional bureaucracy is taken to be another set of business configuration like the above discussed machine bureaucracy. In this regard, Schermerhorn (2011) observes that the professional bureaucracy as the term relates to best suits in regards to professional organizations where each of the different units is a self managed entity. It is found that in cases of professional bureaucracy the organization performs on the basis of horizontal integration where the decision making activities work on a decentralized note. Moreover unlike machine bureaucracy the professional bureaucratic system does not render increased emphasis on the tenets of increased rules and regulations governing the employees at the workplace. This type of business configuration suiting the professional firms is thereby held that such people are matured enough to take potential decisions on their own. Thus there arises less need for any formal rules and regulations managing their work activities. This type of professional setting being informal helps in motivating the employees to act in teams guided by their own rules to help serve the consumers in an enhanced manner (Schermerhorn, 2011, p.393). Methodology The paper in question is found to require a substantial amount of research to be conducted. The resources for the same can be had either from primary research activities or from activities pertaining to the domain of secondary research. In this case if a primary research activity is incorporated it can lead to misleading information for the sources from which the information would be derived are seemingly unauthentic in nature. Different people interviewed in the process would have different set of perceptions in regards to the organizational design processes for which it may lead to conflicting understandings. Further primary research activities are also highly time consuming in nature and would also require large amount of investments to be incorporated for the same. On the contrary with the advent of internet the research activities based on secondary sources has become a highly available option. The internet is helping the researcher to take the help of large number of authentic resources in the forms of online books and other academic resources which would help the researcher to analyze the potential information. Moreover the use of secondary sources in an extensive manner helps the researcher in saving large amount of investments and thus helps in reducing the research cost. Authenticity of the information derived from the secondary sources serves as a background for future research directions taken in the stated perspective. Further due to availability of potential information in the internet the researcher takes less time in retrieving potential information for the research to be conducted. Secondary research activities can be pursued by the researcher in an independent manner where the primary research activities require the need for additional human resources to conduct effective surveys through the framing of questionnaires (Collins, 2010, p.120). Thus in regards to the research paper books are consulted which would help in gaining theoretical information pertaining to the organizational design systems and processes. Moreover the research paper in question also takes the help of case study based research. Case study based research helps the researcher put enhanced focus on the subject in question based along different angles. Further the use of case study helps the researcher to present a detailed understanding of the topic to the reader through the using of certain practical examples in relation to business organizations. Use of case study helps in narrowing the research objective and thereby requires lesser time in retrieving potential information in such respects (Wimmer and Dominick, 2010, p.141). Findings and Analysis The Findings and Analysis portion would focus on significant case studies to help illustrate the theoretical discussions made on the above aspects in the Literature Review section. Organizational Design In regards to variances in organizational design different cases can be presented in regards to different firms. Firstly while locating organizational designs based on effective span of control it is found that in respect of Royer’s Roundtop Cafe situated in Texas and McDonald’s the span of control largely differs. It is quite small for Royer’s where the owner can manage his men in an independent manner. However for McDonald’s the chain of Command is much larger owing to the management of staff based along different franchises located in different regions. Again for corporations like Mercedes Benz the degree of work specialization can be emphasized through the designing of adequate software which would help in creating a virtual portal for the employees to share in potential information. Similarly the organization structure in New-Wave Fashions Inc. reflects large scale decentralization activities as the entire organizational task is divided along three units-men’s, women’s and children’s. Further the marketing and operational activities are also divided based on regions and activities (Pride, Hughes and Kapoor, 2010, p.83-86). Designing of Individual Position In regards to the designing of individual positions in business organizations it is found that in organizations like Caterpillar the case for employees and their managers are dealt in a different manner. The company generates different roles and polices for the two different sets of staffs and also generates different set of expectations from them. Different training programs are designed for the two groups to help enhance their position in the concern (Griffin, 2010, p.335). Designing of Effective Superstructures In regards to designing of effective superstructures the company Saturn a retailer is found to delegate a team of six to fifteen persons for the management of different outlets spread along the regions. Again in regards to another financial organization like Edward Jones the designing of superstructures is conducted based on an electronic interface wherein autonomous professional like brokers are embraced (Bloomsbury Publishing, 2003, p.199). Fitting the Organizational Design to the Situation The organizational design and structure should be made as such as would meet the needs of the external environment of the concern. In the case of companies facing disaster like Chernobyl the employees of the company were required to act in a proactive manner. Thus organizational structures were created to help the people act in a proactive manner to resolve the problems. However in another company like the Hinsdale Telecommunications the employees were required not to take any potential decisions on their own. Rightly the organizational structure was adapted to meet the need. Hence organizational designs should be so created to meet the needs of contingencies (Lin and Carley, 2003, p.19). Again in regards to sport organizations it is also found that different organizational designs are required to be created in order to meet the needs of the different situations. For example, the organizational design for Nike needs to be created for helping the concern become a market leader in the athletic footwear industry (Slack and Parent, 2005, p.3). Machine Bureaucracy The health organizations operating around the world especially in the developing regions of Africa and Latin America are found to operate largely on the systems of machine bureaucracy. It is found that the health authorities operating in such areas do render significant rules and regulations in relation to the treatment patterns of ailments which need to be followed by the concerns. Further strict monitoring is followed by medical teams in such respects. Thus it reflects a highly centralized and formalized pattern of governance bearing the tenets of machine bureaucracy. However, Machine bureaucracy fails to render needed productivity in some quarters owing to the lack of proper medical and financial resources in the government of such regions (Unger et al., 2000, p.1008). Professional Bureaucracy The case of professional bureaucracies can also be studied in regards to medical organizations. It is found that medical organizations are largely composed of professional teams of medical professionals who desire to act in an independent and autonomous manner. Thus horizontal networks have developed among medical professionals who through the designing of workshops aim to bring about changes and enhancement in the medical services. However in that the medical organizations need to be modernized through incorporation of newer technology and effective training programs to help enhance the medical situations in the region. This aspect would help in the enhancement of the autonomous structure of the medical organizations (Unger et al., 2000, p.1009). Conclusions The above paper underlies the conceptual understanding of organizational design and the separate parameters which should be kept in mind while constructing an effective organizational design for a company. The paper presents an understanding of how effective organizational designs can be created for organizations of varying traits and business philosophies. It also shows how the organizational designs can be varied to meet the needs of contingencies and also reflects on the enhancement of superstructures and individual positions in the concern. Further the paper also reflects on separate case studies to show the pragmatic understanding of the theories discussed in relation to organizational design. References Robbins, S., Judge, T., and Sanghi, S. (2010). Essentials of Organizational Behavior, 10/E. Pearson Education India. Art, C. (2005). Organizational principles for multi-agent architectures. Birkhauser. Fox, W., Schwella, E., and Wissink, H. (2004). Public Management. AFRICAN SUN MeDIA. Theodoraki, E. (2007). Olympic event organization. Routledge. Oliviera, N. (2011). Automated Organizations: Development and Structure of the Modern Business Firm. Springer. Schemerhorn, J. (2011). Organizational Behavior. John Wiley and Sons. Pride, W., Hughes, R., and Kapoor, J. (2010). Foundations of Business. Cengage Learning. Griffin, R. (2010). Management. Cengage Learning. Bloomsbury Publishing. (2003). Business. CITIC Publishing House. Lin, Z., and Carley, K. (2003). Designing stress resistant organizations: computational theorizing and crisis applications. Springer. Slack, T., and Parent, M. (2005). Understanding sport organizations: the application of organization theory. Human Kinetics. Unger, J. , et al., (2000). Through Mintzberg’s glasses: a fresh look at the organization of ministries of health. Bulletin of the World Health Organization. 78(8). Retrieved on November 21, 2011 from: http://www.who.int/bulletin/archives/78%288%291005.pdf. Collins, H. (2010). Creative Research: The Theory and Practice of Research for the Creative Industries. AVA Publishing. Wimmer, R., and Dominick, J. (2010). Mass Media Research: An Introduction. Cengage Learning. Read More