Organizational Structure and the Affect on It's Memebers
MGT501, Module 1, Case
Organizational Structure and the Affect on Its Members
In today’s business economy, it is extremely important for companies and businesses to have a management structure, or organizational design, that optimizes the company’s valuable resources. As companies compete in the free market system of Capitalism throughout the global economy, the need for a successful organizational structure becomes extremely important to gain advantage in the competitive market. Businesses and organizations require an organizational design which allows them to compete in the global economy with a high degree of effectiveness and efficiency.
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Organizational structure includes, but is not limited to, power and reporting relationships such as those in organization charts, behaviors required of organization members by organizational rules, and patterns of decision making and communication among organization members. It encompasses both formal and informal aspects of relationships between members (Ambrose & Schminke, 2003). This section will discuss the aspects of the matrix, mechanistic, and organic organizational designs.
Mechanistic Organizational Structure
According to C.S. Spell and T.J. Arnold, the mechanistic organizational structure is rigid and tight indicative of traditional bureaucratic environments. In this type of structure, power is usually centralized and communication is channeled through rigid hierarchical chain of commands. Job descriptions and decision making styles in the mechanistic structure are very uniform and formal (Spell & Arnold, 2007).
With mechanistic structures, executives make decisions and middle managers implement those decisions through delegation to employees. Because middle managers do not usually have a voice in decision making in this type of organizational structure, middle managers may feel powerless. Middle management may not always agree with executives decisions, yet are required to implement
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All organizations have a structure; criminal justice is much as the military in regards to having a chain of command that delegates his/her authority downward from the major command element (Stohr & Collins, 2014). Max Weber defined the characteristics of a bureaucracy as the following: there is a hierarchy of authority that has several levels where each level is controlled by the one above them and includes formal procedures (Stillman, 2010; Stohr & Collins, 2014). Each position is divided with no overlap of duties and the work environment would be impersonal with employment decisions based on the employees technical qualifications (Stillman, 2010; Stohr & Collins, 2014).
One key responsibility of working as a manager is to recognize the best way to organize and run an organization. A manager who can work with and put into motion the structure and plans of a company is very important to the life of the organization. Chief Executive Officer of Chick-fil-A Dan T. Cathy is an example of such a manager and business owner. Chick-fil-A began its journey in 1960 in Hapeville, Ga. Since then the second
To organize and prioritize the current and future projects in the pipeline in a way that fits into the PMB budget of $5B, and ensures projects that increase sales, growth, and stockholder value are of top priority, whereas projects that are not beneficial are either put on hold or discarded.
Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. According to USA their structure states in order to provide clear alignment and focus for the planning process of USAA’s organizational structure, a planning team was assembled with strategic-thought leaders to author a strategic market outlook.
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.
Mechanistic structures are the predominant authority at the very top of the management level. In some companies this management level could be called the Executive Director, President, or possibly the CEO. Orders are passed from this top authority down the management line down to the lower level of employees.
Organizational design is defined as a functional, divisional, and matrix structure in an organization. For Boeing, a Metrix structure is used for stronger horizontal alignment for the organization, starting with the CEO, the matrix structure of Boeing flows downward to nine department heads who are senior vice presidents, these departments are listed as follow:
The mechanistic organizational form, or bureaucracy, is a structure that is high in specialization, formalization, and centralization. It was the natural result of combining the six elements of structure. While organic organizational form, is an adhocracy. It is a structure that is low in specialization, formalization, and centralization. Organic organization is highly adaptive, loose and flexible. The loose structure allows organic organization to change rapidly as required.
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
In contrast with McDonalds their success is from globalization. Since the early 1940’s McDonalds has been a burger business, and accomplished to be the first one’s to become global. McDonalds has invested into several community organizations that helped the business to earn trust from the communities and gave more of a positive outlook towards their restaurants. They support their own employees, their families, and other groups of society in every country where it has business. McDonalds has website links to promote healthy living for kids, teens, and Latin and African Americans. McDonalds Happy Meals, McDonalds for teens, Me Encanta, and 365Black. They have corporate governance, which shows in detail of their operational structure. There is a whole webpage that is dedicated to explain about what is their drive to stay successful, what the board of
Effective organizational structures define how job tasks are subdivided, grouped, coordinated, and managed. Six key components of organizational structures include division of labor, departmentalization, chain of command, span of control, centralization, and formalization (Remme, Jones, Van der Heijden, & De Bono, 2008, p. 79). Each element influence how employees interact with each other to reach organizational goals. Different structures are common in similar organizations among high performing organizations (Reimann, 1974, p. 707). The most appropriate structure will depend on the unique needs and culture of the organization.
The design of an organisation is highly crucial for a firm in today’s world in order for it to achieve and sustain its competitive advantage that will place the firm in a stronger position than its rivals. The firm can manipulate the components of organisation design, fit these elements with one another and with the strategy, to impact the firm’s performance. Hence, the goal for the organisation is to have a good fit between the firm’s design and its competitive advantage in order for the firm to be strategically aligned with the strategy. Any effective design will have to address 2 general problems: the coordination and incentive problems and must do so in a way that supports the organisation’s strategy. The firm can make use of the
He will need to communicate to them all as to how the restructuring will be done so that they all understand. They will need to know how this will affect the jobs they are doing.
Mechanistic structures are designed to induce people to behave in predictable, accountable ways. Decision-making authority is centralized, subordinates are closely supervised, and information flows mainly in a vertical direction down a clearly defined hierarchy. In a mechanistic structure the tasks associated with a role are also clearly defined. There is usually a one-to-one correspondence between a person and a task (figure 1 depicts this). Each person is individually specialized and knows exactly what he or she is responsible for, and behavior inappropriate to the role is discouraged or prohibited.