ABB Power and Productivity for a Better World COMPANY BRIEF ABB (Asea Brown Boveri) was formed in 1988 by the merger of two companies: the Swedish company ASEA and the Brown Boveri of Switzerland to create a global electrical engineering giant. Percy Barnevik (of ASEA) was the chief executive and master mind of the restructuring process that integrated both the companies. * In your opinion, was the organization structure chosen for Asea Brown Boveri by Barnevick appropriate? The Organisation structure chosen for Asea Brown Boveri is the Matrix form of organisation structure. This form of organisation structure creates dual lines of authority and combines functional and product departmentalization. Advantages provided by this model: …show more content…
* Ensuring greatest level of work satisfaction and optimal operational efficiency: The organizational structure should ensure job significance and also give a sense of autonomy/empowerment to the employee. This creates a high level of internal job satisfaction and ensures high operational efficiency. * Optimum ratios of supervisors to subordinates : This ratio needs to be maintained at the optimum level in order to avoid overhead of duplicity in monitoring and overstressed levels of monitoring. Conclusion It is very difficult to predict as to whether the organisation has chosen the right structure or not since the effective implementation of the organisation structure depends on the people. However, technically speaking, this is the most suitable organisational structure for the company given its complexity and globally spread out
There are several organizational structures that can be implemented by organizations. These organization structures are from two different viewpoints, traditional and contemporary. The traditional models such as hierarchies and bureaucracies are founded on the assumption that organizations exist in a basically calm environment, with changes occurring only as the
The structure of an organization is very important because it determines the different roles and how all the departments perform. The organizational structure consists of a group of people that works together to achieve the goals that are implemented.
Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.
All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.
Organisations must organise a structure so that their objectives can be achieved. A company will have different departments and procedures with each one having a special function. All of these organised departments and procedures are linked so the company can run efficiently. For many organisation this can be very complex has they will have offices in international countries around the world.
Organizational structure Organizational
Organisations are made up of individuals brought together to enable the organisation to achieve its mission. The organisation's structure will determine how these individuals are brought together and how they relate to one another. The success of the organisation is dependent on each individual working together to achieve the common
BEC has taken on the matrix organizational structure. This type of structure combines functional and divisional organization structure styles. There are advantages and disadvantages in utilizing this
(Organizational Structure, 2017)This form of organization structure has many positive attributes such as being more stable and less inclined to change and also it groups, peoples with similar knowledge and skills are grouped together There are also negative factors in functional structure organization such as the structure makes it harder to respond to the market quickly. While using this form of structured communication sometimes can become strained and the level of cooperation can be compromised. Another form of organizational structure is a customer service organization structure in which the customer service provides directions for the employees and the business. The overall customer service helps to support the whole business model. It just depends on the type of business and the size on how successful the customer service organization structure going to be. There are positive factors such to this form of organizational structure such as different employment levels, which leads to better pay grades and performance incentives. The organization also offers better employment opportunities to its employees. There are more organizational structures that center around employees such as a matrix structure in which employee’s relationships are set up in a grid and it is not required to report to hierarchy. There are also many
9) What are the pros and cons associated with various organization structures used by international firms (4.2)?
An organizational structure is the outline of a company’s framework and guidelines for managing business operations. An organization 's structure and its degree of centralization or decentralization depend on a number of factors, including the size of the organization and its geographic dispersion. In a very large and diversified organization, it is unlikely that a handful of people will possess all the resources to achieve all goals and objectives of the enterprise. As a result, it becomes impractical to concentrate power and decision-making authority at the top. Similarly in a geographically-dispersed organization, a centralized approach will not be the most efficient, as the people with the most authority will be unable to directly supervise operations on a day-to-day basis.
According to Bethel University, 2011, organizational structure is the organization’s design or set up for how it will function in order to meet its necessary goals and objectives. The structure of an organization may include a level of hierarchy for stakeholders, management staff, and front line employees. It is imperative that an organization has established its structure to ensure there are open lines of communication and well established guidelines for all involved. Communication is a very important piece to the organizational structure because it has the potential of directly affecting employee behavior and performance. Lack of effective communication processes can lead to financial losses for organizations.
The organization structure defines the role and position of each employee clearly. An organization structure that is not responsive to the needs of the organization will disrupt cooperation and affect the completion and targets of customer orders due to time lapses and misuse of limited resources (Foti, & Hauenstein, 2007).
The task that I have been set is to examine an organisation of my choice and use my own research to satisfy the following outcomes:
Picking the right management structure guarantees an organisation proceeds with development, happy employees and gainful returns for the shareholders. Picking an unsuitable structure makes pressures in the middle of employees and supervisors, permits wasteful work practices to thrive and decreases organisation profits. In the most pessimistic scenario an inaccurate management structure can prompt organisation closure.