Analysis Of Old Style Vs. New Style

Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.

Kreitner, R., & Kinicki, A. (2013). Organizational behavior (10th ed.). New York, NY: McGraw-Hill/Irwin. Retrieved from

From the perspective of this author, both types of organizations have a critical need for the right manager that focus on the right areas. Therefore, both would have to pay close attention to their stakeholders and their motivators regardless of organization type. Case in point,

John Molson School of Business Department of Management Comm 222: Organizational Behaviour and Theory Winter 2013 General  Information   Comm  222   Section   E   Class  times:  Monday  &  Wednesday  8:45  –  10:00   Class  location:  MB  3.430   Credits:  3     Instructor:  

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.

Robbins & Judge. (2013). Organizational Behavior, Fifteenth Edition, eBook Collection, Upper Saddle River, New Jersey; Published by Prentice Hall.

The transformed organizational model is quite different and the operating process is quite different. Figure below gives us insight into why interconnecting the stovepipes is a better option. We redisplay the organization in 'link patterns' and we see a totally new perspective. By adding the horizontal ties we have transformed a simple hierarchy into an interconnected group. Recent research by psychologist Patrick Laughlin of the University of Illinois shows that groups outperform even the best individuals in decision making. Intelligence information is rarely clear or complete -- a key reason for having many perspectives and diverse experiences for cross-pollination and sense-making. (Organizational Hierarchy, page 1 para. 10)

b) Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.

After reviewing and researching the literature with respect to organizational changes, I have come to the conclusion that organizations have always changed. When everything in the world is changing, organization cannot remain islands. They must change to face new challenges. Bolman and Deal (2008) claim organizations have changed about as much as in past few decades as in the preceding century. Bolman and Deal (2008) claim means that the change organizations have experienced in the last decade are almost similar to those they experience in at the end of the twentieth century.

1. What was the organization design that was in place at McKinsey and what did they want to change? Did the change in design complement their strategy? What were the key barriers to implementing change?

References:Huczynski, A. A. and Buchanan, D. A. (2007) Organizational behaviour: An introductory text. 6th ed., Harlow: Financial Times Prentice Hall.

Traditional companies with boundaries, rules, and extensive plans are at a supreme disadvantage in today's globalized world, where technology changes daily and the value chain commands changes of its own. In a traditional company where people are categorized into neatly defined positions with their job descriptions filed in triplicate in the human resources department, the way a company plans its business can cause it to sink or swim. Bad planning can mean lost opportunities, being overtaken by the competition, loss of revenues, or watching its niche slip away because of a new technology, an alteration in the global marketplace, or simply a failure to market its product effectively. When changes occur, they happen too

21st-century organizations are different, and the pace of change is even faster. This has given rise to new ideas about where leaders need to put their energies. Perhaps this means less vision and more connectivity (Esther and Mike 2004). Today, organizations are in a continuous process of transformation. Change became the norm of organizations not an exception. If organization is traveling on the rout of success then its possible destinations are change management, adoption of new technologies and phenomenon (Joachim and Ralf 2008).

In a centralized organizational structure one individual is responsible for making all the decisions and maintains control of the company by giving direction. While Decentralized organizational structures often rely on several persons with the authority to make final decision for the company’s well being. Some benefits associated with a centralized organization are as follows: Reduction in cost in the work environment, having a focused vision on one common goal and Reduction in conflict. A Few drawbacks of a centralized organization include, No secrecy because all ideas and decisions are conveyed to all, No special attention and Delay in work. Advantages associated with Decentralization are; Huge relief is provided off the top managers, Greater use is made of employees skills and Decision making is left up to educational and well informed people.

At least two different organizational structures are identified, described, and compared in terms of their design principles.