Organisational Structures for Effective Management Assignment Sample

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Executive Summary

Operations management within organization and their current position in the market is influential for their success.  Bookmark is a company based out of UK and has a small chain of Bookshops. Currently, due to less demands in products, the sales of the company is down. The management thinks that the organizational structure is the main reason for inability to manage sales. Therefore, a change within organizational structure is to be implemented. This report would deal with the key aspects and process of organizational structure change.

Introduction 

Organizational structure can be considered as a system that outlines the process of conducting the operations management process. Specifically, it also determines the process of information flow within an organization. Organizational structure can be either centralized or decentralized depending on the policies set forth by the Upper level management. Redesigning an operations management process can be complex and requires certain points to be considered to support the implementation strategy. In this context, it is to be mentioned that once the motive of the structural redesign matches with the strategic objective, all employees would be redirected to achieve the goals. This study would demonstrate the principle and processes associated with organizational redesign considering Bookmark company case study as reference.

Key factors that need to be considered when designing the structure of organizations

 Size of the organizations: 

The size of an organization is significantly impacted by the size of the organization. Stanford (2015) mentions that larger organizations have a complex structure with functions divided into departments. The structure, in most of the cases, are decentralized and decision making power is within the heads of functional departments. In contrast to this, smaller agencies like “The Bookmark” have less functional departments. In some of the cases, functional departments may even be amalgamated for effectiveness. This is because they might not have access to enough Human capital. Further the decision making authority rests within the top label management making organizational structure centralized.

Product or service: 

The type of products and services offered by companies also have a huge influence on the organizational structure. Galbraith (2014) mentions that companies may have different departments for different products and services and this is known as the product organizational structure. Companies that have access to financial capital for affording more human capital, have the ability to implement product based organizational structure. The products offered by “The Bookmark” is limited to mainly books and related items, hence, to manage operations effectively, functions may be divided based on products. Product based organizational structure would be beneficial to the management of “The bookmark” as they would be able to increase sales by meeting consumer needs effectively.

Organizational life cycle: 

Organizational life cycle can be considered as an expected set of advancements within an organization. Conventionally, these events are expected to occur sequentially and it is the organizational structure of the organization that influences its existence. Miles et al. (2010) states that, it is the strategic decisions taken by the organization that sets pathways for organizational advancements. The same can be applied in case of “The bookmark”, it was the decisions taken that had helped the company to achieve profits. Similarly, it is the mistakes made by the management in making decisions that is pushing the organizations towards its termination stage.

Strategy:

Strategy defines the processes through which operations management is conducted within an organization. This includes plans on resource and Human capital allocations so that the organization is able to meet the corporate objectives. Handy (2006) mentions that companies of all sizes conduct market research for identifying opportunities. Once the opportunities have been grabbed, companies deploy appropriate operations structure to utilize the opportunity that has been presented to them. Strategy formation and setting organizational structure involves evaluation of market competition, consumer trends and changes in culture. Conclusively, it can be mentioned that the organizational strategy and structure of “The Bookmark” are dynamically related.

Business environment: 

Business environments can influence operations of a company in both positive as well as negative ways. As per Marisa and Oigo (2018), companies would have to analyse both internal as well as external environment before retrofitting the organizational structure. Changes in business environments would present the management of “The Bookmark” with a range of opportunities and challenges. In case changes in products are required, product based organizational structure can be implemented. In contrast to this, if changes in functions are required, functional organizational structure can be implemented. For instance, development in technology had created a decrease in sales for “The Bookmark” as a company and the management would have to develop new product applications. Then product based organizational structure can be implanted.

The impact of information technology:

Information technology implementation and Organizational structure are interdependent on each other. Implementing information technology in business, enables the management in ensuring smooth control over organizational processes. Handy (2006) states that information technologies in business have impacts on organizational structure, be it centralized and be it decentralized. The following aspects of organizational structure are impacted by implementation of IT practices

  • Authority as well as control
  • Space allocated for control
  • Changes to be made within organizational level
  • Structure of hierarchy within each department
  • Decision making processes
  • Flow of communication

Using information technology as a base for developing organizational structure shall enable the management of bookmarks in having an efficient control of sales through all branches.

Galbraith’s Star Structure 

Galbraith’s Star Structure - 4HR018- Best Organisational Structures for Effective Management Assignment Sample

 Figure 1: Galbraith’s Star Structure 

(Source: Moşteanu, 2020)

Galbraith’s Star Model dictates how to create an organization holistically that would further help in sustaining the company’s corporate objectives. As commented by Moşteanu (2020), this model stresses on the importance of considering the business environment within management. Based on this model, the bookmark is expected to modify its operations in response to changes. There are four major aspects that has to be considered while framing an organization’s operations structure;

  • Strategies that would provide directions to the company’s motives.
  • Structure that would guide the operations management
  • Process information that would aid decision making
  • People who would deliver their efforts for effectiveness.
  • Rewards for motivating employees to perform better

Demand for flexibility:

Operations management is expected to be flexible as market demands change with time. It is the demands of the market that drives business competition. Therefore, if a company aims to become successful in the market, the operations management and organizational structure would have to be flexible. For instance, in the current situation, the management of the bookmark is expected to be flexible and must be able to transition smoothly to a functional or product based organization.

Implications of organisational structure for the management and development of people and resources 

Relations between individual and organization

Developing staff:  

Organizational structure enables the upper level management in interacting with the lower level employees. Having a participative organizational culture shall enable the management of the company in interacting with employees. Thus areas of defects within the staff can be identified easily by the bookmark. Based on this training and development can be provided to the existing employees of an organization. Tanning staff based on changes in organizational structure shall be of potential benefit to the bookmark in the long run.

Management of change:

As commented by Buchanan and Huczynski (2019), change management is expected to be conducted through a collaborative effort where both management and employees would participate. In order to gain employee confidence, the management of the bookmark is expected to explain the reasons behind change management processes. Specifically, the benefits of the changes are to be highlighted. Failing to gain the confidence of the employees shall result in dissatisfied employees.

Financial implications:

The bookmark as an organization would have to spend additional capital in maintaining good relations with potential employees of the company. Apart from paying the employees their monthly emoluments, the company is expected to start providing incentives as well as bonuses (Marisa and Oigo, 2018). Incentives and bonuses shall act as a motivator and allow employees to remain satisfied, thus each employee would be primed to deliver tasks smoothly.

Type of workforce:

Since the operations of the Bookmark had been initiated a long time back, the management style is poor. Apart from this, it is also imperative that most of the employees within the company are not millennial and young generation people. As commented by Buchanan and Huczynski (2019), considering Maslow’s hierarchy of needs, aged employees need more allowance to remain satisfied. In contrast to this, the requirements of millennial are comparatively low.  Thus maintaining good relation with millennial are easy

Handy’s three significant workforces; culture

The significant workforce culture types are;

Task culture: in this type of organization, teams are formed to delegate tasks within projects. Thus, common interests of the employees have been observed to be mattered the most. These type of work cultures have been observed to be participative

Person culture: in certain organizations, employees are made to feel valuable so that they remain satisfied. In such work cultures employees are mostly concerned regarding themselves rather than the organization

Role culture: in this people delegates roles and responsibilities based on specializations, educational qualification and interests. Each employee has a clear understanding regarding roles and responsibilities.

Conclusion

Organizational structure along with the type of employees working within the organizations matters the most to companies. While designing the organization, the management of Bookmark is expected to consider strategies, structure, processes and people extensively. It is the employees that must be valued the most. Defining an organizational structure is expected to be accomplished based on organizational type, process and functions. However, the organizational structures must be flexible and must be able to transition smoothly based on market demands. However, the new structure must be participative and support the needs of employees so that they function better

Reference

Buchanan, D. and Huczynski, A., (2019). Organizational behaviour Hucbuc. 10th ed. Harlow, United Kingdom: Pearson Education Limited, p.834.

Galbraith, J., (2014). Designing Organizations. 3rd ed. San Francisco, California: Jossey-Bass, pp.100-347.

Handy, C., (2006). Managing For Quality. 4th ed. Dundee: University of Dundee Centre for Medical Education, p.445.

Marisa, R. and Oigo, D., (2018). Influence of organizational resources and structure on business continuity management of private security firms in Kenya. Journal of Human Resource Management, 6(1), pp.18-25

Miles, R., Snow, C., Fjeldstad, Ø., Miles, G. And Lettl, C., (2010). Designing Organizations to Meet 21st-Century Opportunities and Challenges. Organizational Dynamics, 39(2), pp.93-103.

Moşteanu, N.R., (2020). Challenges for Organizational Structure and design as a result of digitalization and cybersecurity. The Business & Management Review, 11(1), pp.278-286.

Stanford, N., (2015). The Economist Guide To Organisation Design. 2nd ed. London: Profile Books Ltd, pp.100-334.

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