Operation Management - Coursework Example

Operations Management Create a diagram that fits a maximum of two A4 sheets to show: a) How the activities necessary to carry out your goal will be carried out a) The relationship between those activities in time and space(when and where they will be carried out and how they all fit together) Since the company is small and in its start-up phase, the flat organization structure shown above would be more efficient and effective in meeting the company’s goals and needs. This organizational structure is relevant since it would allow the few employees to specialize in the various functional areas to effectively meet the needs of the customers. The activities will be carried out from a single location or building. Each of the functional area will have a department with the head of the department in place. The head of human resources will head the human resource recruitment and placement department. The role of this department shall be to source for appropriate human resources based on the specifications of the client or employers. It will also classify employees using their skills base and experience to align them with the various vacancies in the corporate world. The head of the human resources shall report directly to the Chief Executive Officer. The head of operations shall be in charge of the operations department. He shall be responsible for all the operations and activities of the company in relations to offering recruitment and placement services. He shall also report directly to the Chief Executive Officer. The marketing manager who shall report directly to the CEO shall head the marketing department. The responsibility of the maketing department shall be to increase the visibility and coverage of the company in the selected locations and to recruit new accounts. Lastly, the head of finance and accounts shall head the finance and accounting department. The responsibility of this department shall be to source financial resources for running the company and manage the financial resources and records. He shall report directly to the CEO. In order to promote synergy, all the functional areas shall be allowed to share information and communicate openly on a day-to-day basis and through weekly meetings chaired by the CEO. Question 2 a) Wheel organization structure The wheel organization structure is mainly applicable performance of the procurement and distribution functions. Raw material are purchased at the hub or center and then distributed to the various regions for processing. Similarly, product deliveries are organized at the center and distributed to the various regions along the spokes (Knowledge & Helen 2005: 47). An example is provided in the fig. below b) Traditional divisional structure In the traditional divisional structure, employees from diverse specializations are placed together in formal groups based on similar products or services, geographical regions and customers or clients. Organizing the company based on the products enables the company to gain sufficient resources and specialized product knowledge for development of diversified range of products. Departmentalization based on customers or market segments enables the company to develop products relevant to the segment, tailor and position such products effectively and focus on strategic customers and market segments. The divisional structure is used when an organization is very large and operates in different geographical regions. The divisional structure allows the company to perform its activities and operations effectively thus meeting the needs of the customers effectively and rapidly. The main problem with divisional structure is that it hinders effective communication because the employees from the different divisions do not work together in synergy. It is also a very expensive and costly organization because the company is forced to employ several employees and perform many operations because of its wide scope and size. Example of a geographical divisional structure is in fig. below. b) Business unit structure The business unit or functional organization structure involves organizing the company based on the various units or functional areas such as finance, accounting, marketing, accounting, operations and human resources. This organizational structure is most appropriate in small organizations with a single product or service and within a small geographical region. This approach has three main advantages. Firstly, it enables the company to develop a wide depth of specialized skills in a particular department of function such as human resources. Secondly, this method is less costly because it promotes the development of functional innovation and scale. Thirdly, the simplicity of the approach enables the company to define responsibilities and accountability for employees and management. The main weakness of this approach is that it encourages focus on the functional areas at the expense of the overall organization or customers. It may also lead to delays incase of a breakdown in one or two of the important functional areas (Knowledge & Helen 2005: 9). An example of this form of organization is provided in the figure below: c) Matrix structure The matrix structure is a hybrid of functional and divisional organization structures. It involves the use of personnel with different experiences and background to work on a specific project, which is to be accomplished within a specified period. Once the project goal has been achieved, the specialized personnel are allowed to return to their normal job descriptions. The matrix structure is commonly used in large multinational organizations such as aerospace (NASA). This type of organization is beneficial because it enables the company to take advantage of the specialized knowledge, talents and skills of its employees and support itself effectively in running important projects. It also enables the organization to achieve the specific needs of the specialized projects and customers more efficiently and effectively. The main drawback of this type of organization is that it may easily result into power struggles and conflicts of interest since it involves the functional manager and divisional managers working in the same geographical regions and at the same operational level. It may also lead to unclear decision-making, lack of accountability and clear reporting framework. However, these challenges can be overcome through clarification of the roles, decision-making individuals and management responsibilities. The figure below illustrates an example of a matrix organizational structure (Knowledge & Helen 2005: 17). 3A) 3b) Analyze the advantages of your method of structuring your organization over the other methods The geographic structure has been preferred for managing the company once it employs more than 50 employees. This structure form is organized around geographical regions in order to achieve the global goal of the company and meet the specific needs of the target customers and clients effectively and efficiently. This organizational structure has also been selected because would enable us to roll out the project in the different countries across the world and enable us to effectively handle the specific environmental differences in the target country in relation to the culture, technology, political-legal and economics (Knowledge & Helen 2005: 37). Advantages of the above organizational structure Departmentalization based on the geographical regions is beneficial because it enables the company to take advantage of specialized human, capital and physical resources in the target country or region, which are critical for success. This organizational structure is also appropriate because it allows the company to customize its products and services to the specific needs of the region and the specific customer expectations and requirements thus providing better and specialized services to the target customers. This structure allows the company to develop a clear focus, reporting framework and accountability, which are relevant for effective and efficient management of operations in the target regions. The structure also allows the company to focus, manage and account for the regional funding resources more efficiently. The geographical structure is also less expensive and costly compared to other organizational structures. Reference Knowledge, S. & Helen, S. 2005. Organizational Behavior and Change Management.UK: Select ` Knowledge Limited Read More