Organizational Structure for Effective Management
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Executive summary
Current report has been described organizational structure and effective management system of an organization. Moreover, this report has focused on key factors which an organization needs to know for implementing new organizational structure. On the other hand, it has been described organizational culture, values, organizational strategies, and theories. Apart from that, current report has been discussed implications of organizational culture for management, development of employment, and resource management system. In this case people have provided several organizational cultures to get a clear view about the topic.
Section 1
Identify and examines the key factors that need to be considered when designing the structure of organisations
Bookmark is a store located in the West Midlands, and it is a regional store chain store, which mainly sells books, newspaper, greetings card, magazine, and newspaper. The store has seen rapid business growth, for which they wanted to expand their business. However, 15 years ago, it has seen a degradation of their profitability as competitors are increasing day by day (Thebookmark.co.uk, 2020). As it is an old store, competitors of the store have started to offer more to consumers as per their requirements. Requirement and choice of people impacted badly on Bookmark, for which it has to close their stores for five years. In order to overcome this condition, senior executives of the store have decided to reconstruct the organization; moreover, they felt to consider their supply chain management and stakeholder for implementing better strategies in the workplace.
Bookmark is a medium-size organization as it has stores in airports, towns, streets, and stations. They provide the best services to the customers, and they provide them with daily use products such as newspapers, magazines, toys, books, and cards (Thebookmark.co.uk, 2020). There are several factors which need to be considered at the time of designing an organization. Clarity, understanding, stability, adaptation, and decentralization are the key factors to structure an organization. At an early stage, the executive of Bookmark needs to clarify the strategy they want to implement based on customers’ requirement. It is an action through which an organization applies its activities to achieve organizational goals. Moreover, clarity helps other employees understand the framework of a business that will use and its workforce management impact.
Figure 1: Flowchart of strategy and organizational structure
(Source: Bigby et al. 2019)
As technological implementation is increasing, hence it is necessary to implement information technology in the book store. Competitors of Bookmark have implemented online delivery, which impacted badly on the organization. “Continuous production technology” needs to be considered by the stories; in this case, very few employees are required to make a production (Khatwani and Srivastava, 2018). These technology inputs are usually transformed to output in a “continuous process”, for example, paper. Moreover, the stores’ executives have to provide a clear picture of the new strategies; thus, they can understand whether they will be fit for the new structure. An organization needs to consider its behavioural, cultural, and physical aspects, which is vital to maintain previous workforce management or profitability (Arif et al. 2017).
There are five steps for an organization such as establishment, growth, stabilization, crisis, and termination. Establishment mainly concentrates on expenses such as investment of the store, and growth focuses on revenue of the company (Al-Taie and Cater-Steel, 2020). If investment exceeds revenue, then it can be considered as a loss. Stabilization also concentrates on revenue and investment; if revenue exceeds investment, the company incurred profit. If income falls below the baseline of investment, stores enter into a loss. If the store does not control the crisis, executives need to close the store (Strauss et al. 2018).
Figure 2: Graph of the organizational life cycle
(Source: Al-Taie and Cater-Steel, 2020)
“Galbraith’s star model” helps stores create a sustainable business model; thus, the store can meet its value proposition. It is necessary to adopt changes in organizational structure, strategies, market value, workforce management, and the stores’ business environment (Möller et al. 2020). This star model concentrates on five organizational strategies such as people, strategy, structure, rewards, and processes. Skills are necessary to understand which skills and or business model the store is required to adopt organizational change. It also helps to set employees’ minds after implementation of organizational strategy, direction helps to understand the strategic goals of the business model, and power describes the strategic structure that can change the business environment softly. Motivation is necessary to encourage people by providing incentives, rewards, and promotion. Process helps collect information that the store needs to make a better workforce in a new business environment (Akhmetshin et al. 2017).
Figure 3: Gilbraith’s star model
(Source: Lemus-Aguilar et al. 2019)
Organizational strategy is another factor which needs to be considered for designing the restructure of an organization, the organizational strategy contains vision, goals, plans, action, and success; however, these are the course of action for achieving organizational goals. Flexibility is necessary for an organization thus employees can easily adopt the changes of organizational structure. All these things are necessary for organizational improvement.
Figure 4: Actions of organizational strategy
(Source: Warrick, 2017)
Section 2
Evaluates the implications of organisational structure for the management and development of people and resources
Organizational structure impacts financial management, productivity, employee management, resource management, and workforce management. As Bookmark has decided to implement a new structure in the workplace, hence, it is necessary to create different levels of communication in the workplace. New workplace sometimes reduces the organisation’s productivity; it enhances employee turnover and faces various issues. Organizational structure sometimes develops staff or reduces staff from the organization. It depends on the structure which the organization is going to implement. Organizational structure enhances profit, decreases debt, enhances financial ratio, and productivity through which a considerable number of employees get attracted to an organization (Lemus-Aguilar et al. 2019).
Organizational structure impacts an organisation’s management as management deals with external systems, employees, and clients. Every employee and management makes advance plans, framework, assigned role, and implement some strategies regarding their project or workplace. However, organizational structure involves a new network system, computerized system, and various digital resources which reduce readability and creativity of management and employees. Organizational structure degrades financial conditions as employees cannot understand which they need to do for better productivity (Möller et al. 2020). Moreover, organizational structure involves different types of resources management policies which must be unknown to employees. Initially, it is challenging to adopt the organisation’s changes; however, it helps to enhance workforce management, productivity, and profit of the organization. As new technology helps people reduce hard work, employees become interested in working in the production firm. New technologies help the store to make products at low cost; moreover, productivity attracts people.
Bookmark is suffering from new-age technology, and product development and customers prefer unique products from their firm. Hence, change structure can help them develop a better workforce management system; using information technology; they can implement machine learning in their toys which can work automatically. There are several workforce types, such as full time, part-time, seasonal, freelancers, and consultants. Workforce management depends on organizational structure, for instance, some companies allow part-time services, some allow full time only, some allow seasonally, and some allow temporary. In order to make a proper employee development plan, it is necessary to provide the proper training. On the other hand, people need to make a proper relationship with individual employees; thus, they can encourage them at the time of change management (Akhmetshin et al. 2017).
Almost 75% of the people do not want to continue their current job, and people prefer a better workplace structure (Akhmetshin et al. 2017). Organizational strategy is required to align business operations with the workplace of Bookmark, and this also helps to identify the critical activities of the business environment. All these factors are necessary to design the structure of the organization. Handy’s theory deals with a flexible organization, core workers, contractual fringe, and organizational culture. The first leaf of the handy describes that several multi-skilled people can manage different tasks at a time. Organizational construction is necessary to identify such people who can adopt changes quickly. On the other hand, flexible workforce management deals with part-time, seasonal, and temporary workers.
Contractual leaf deals with the organization’s main activities, activities are marketing process, business model, communication strategy, and computing process of the structure. Relationship between organizational and individual needs to improve; thus, employees can enhance their skills and knowledge (Elsbach and Stigliani, 2018).
Figure 5: Handy’s management theory
(Source: Elsbach and Stigliani, 2018)
There are three stages of a relationship, such as a group learning, role learning, and organizational learning. Face-to-face communication is a practical approach to make relationships and trust between individuals and organizations. Role learning is necessary to manage a group and to make collective decisions. Through this role, learning employees understand financial and cultural degradation of the organization. Formal and informal organisation employees help the management implement the best strategies for making better workforce management. Organizational structure helps management and the account section implement better policies; thus, employees can understand customers’ necessity (Möller et al. 2020).
Figure 6: Relationship between organization and individuals
(Source: Bigby et al. 2019)
Organizational culture helps to manage values, practices, and expectations of an organization. Organizational culture deals with innovative approaches, aggressive culture, “out-come oriented” culture, stable culture, people-oriented culture, team culture, detail-oriented culture, service culture, safety culture, and culture strength (Elsbach and Stigliani, 2018). Organizational culture helps an organization to attract more number of customers; moreover, it also helps to gather several numbers of employees in their firm.
Figure 7: Organizational culture profile
(Source: Elsbach and Stigliani, 2018)
Reference list
Journals
Strauss, A.K., Klein, R. and Steinhardt, C., 2018. A review of choice-based revenue management: Theory and methods. European Journal of Operational Research, 271(2), pp.375-387.
Al-Taie, M. and Cater-Steel, A., 2020. The Organisational Life Cycle Scale: An Empirical Validation. The Journal of Entrepreneurship, 29(2), pp.293-325.
Möller, K., Nenonen, S. and Storbacka, K., 2020. Networks, ecosystems, fields, market systems? Making sense of the business environment. Industrial Marketing Management, 90, pp.380-399.
Akhmetshin, E., Danchikov, E., Polyanskaya, T., Plaskova, N., Prodanova, N. and Zhiltsov, S., 2017. Analysis of innovation activity of enterprises in modern business environment. Journal of Advanced Research in Law and Economics, 8(8 (30)), pp.2311-2323.
Lemus-Aguilar, I., Morales-Alonso, G., Ramirez-Portilla, A. and Hidalgo, A., 2019. Sustainable Business Models through the Lens of Organizational Design: A Systematic Literature Review. Sustainability, 11(19), p.5379.
Khatwani, G. and Srivastava, P.R., 2018. Impact of information technology on information search channel selection for consumers. Journal of Organizational and End User Computing, 30(3), pp.63-80.
Arif, M., Zahid, S., Kashif, U. and Sindhu, M.I., 2017. Role of leader-member exchange relationship in organizational change management: Mediating role of organizational culture. International Journal of organizational leadership, 6, pp.32-41.
Warrick, D.D., 2017. What leaders need to know about organizational culture. Business Horizons, 60(3), pp.395-404.
Elsbach, K.D. and Stigliani, I., 2018. Design thinking and organizational culture: A review and framework for future research. Journal of Management, 44(6), pp.2274-2306.
Bigby, C., Bould, E., Beadle-Brown, J. and Iacono, T., 2019, July. Organisational structures and processes associated with good Active Support. In JOURNAL OF INTELLECTUAL DISABILITY RESEARCH (Vol. 63, No. 7, pp. 710-710). 111 RIVER ST, HOBOKEN 07030-5774, NJ USA: WILEY.
Website
Thebookmark.co.uk (2020), A small, independent bookshop located in the heart of Grantown-on-Spey. Available at: https://thebookmark.co.uk/ [Accessed on: 25/12/2020].
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