ERC INSTITUTE VIETNAM
Fundamental Management
Organizational structure & Syngenta Case Study Lectures: Andrew Sadler Students: Fred Nguyen Date: June 23, 2011
Organization Structure & Employee empowerment
Fred Nguyen
Table of Contents
1 Introduction ........................................................................................ 1 2 Hierarchical structure & Matrix structure .......................................... 1 2.1 Hierarchical organization structure .............................................. 1 . 2.2 Matrix organization structure ....................................................... 2 3 Syngenta’s employee empowerment
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In this section, we will discuss the hierarchical organization structure and matrix organization structure and their advantages and disadvantages in case of Syngenta.
2.1 Hierarchical organization structure
Hierarchical organization structure is a rigid structure with regulations, positions, relationships between people and departments that describe how the work will be done (Kirchmer 1999). This section will focus on the levels of hierarchical and spans of controls to describe a hierarchical organization structure. A Hierarchical organization can also describe as a tall organization which has many levels of hierarchy and each level has a narrow span of control (Vallabhaneni 2009). This structure is suitable in case if staffs are lack of competences to carry out the work (Stojkovic, Kalinich & Klofas 2008). This type of structure offers clear opportunities for promotion and somehow helps to keep employees within organization (Nalbantian et al. 2003). For example, in the organization chart of Figure 1, an operative know that who is above them and if they got promotion which position they will be promote. This also makes it very clear for staffs to know their tasks, their roles, people they have to report to and people they are in charge of (Kirchmer Figure 1
The hierarchical organization structure is pyramid-shaped. At the top of the structure is a single person, who has a small number of people reporting directly to them. Each of these people has several people reporting into them and the number of people at each level increases as you move down the structure.
the different types of management structures with other types of organizations with taller hierarchical, example an acute hospital administrators have numerous specialists as department heads dealing with areas such as Human Resources, Finance, Planning, Marketing and Social Services, while Long Term Care Administrators have to handle many of these areas
A Hierarchical structure is a term used to organise a business into different categories of employees that contain multiple types of groups, which would be typically in a chain of commands that is usually in a pyramid that contains a large number of employees, so the lower part of the pyramid having the responsibility of a small role, meanwhile the upper part of the pyramid consists of roles that carry a big responsibility. However, there is one rank that is one
Alternative structures such as grouping by output/product or grouping by market are not options as they would result in “duplication of activities and resources, the erosion of deep technical expertise, missed opportunities for synergies and learning” (Ancona, Kochan, Scully, Van Maanen, & Westney, 2009, p. M2-19). The matrix structure provided a potential positive aspect in that it would provide a needed cross-functional linking mechanism by mixing the functional structure with grouping by output/product, but the complexity, cost, dual systems, and dual roles resulting from the matrix structure historically resulted in either the functional or the output/product system becoming more powerful than the other.
Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority helps in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in
“An organizational structure defines how job tasks are formally divided, grouped, and coordinated” (Robbins and Judge, 2007, p. 583). The six key elements that Robbins and Judge explain that managers need to address are; work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Coming from a military background, I find it easy and effective to bring in a strong chain of command. Robbins and Judge (2007) define chain of command as “an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom” (p. 542). This chain of command eliminates confusion, keeps employees working on their respective tasks without distracting others with any involvement on certain areas, and can help to break up the cliques. Currently there is a jumbled Sociogram depicting unilateral and bilateral communication throughout the organization. The chain of command can stream line this communication and ensure the right tasks are being delegated and communication can be effectively transferred through the appropriate levels to increase efficiency.
Our organisation structure is tall, this is because we have many different levels of employees all reporting upwards to team leaders and then up to operational management. It has a wide chain of command with a narrow span of control. The chain of command refers to the number of levels within our organisation. The span of control is the number of employees who are directly supervised by one person.
Departmentalization includes two parts Traditional Organization Structures and Horizontal Organization Structures. Traditional Organization Structures is divided three structures that are Functional,
Document the company’s hierarchical structure and publish it on our company’s website. It will help employees to understand the rules and regulations they must follow and responsibility as an employee.
Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat.
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure:
A hierarchical chain of command d) Clear separation of ownership and control Culture and organisation success Daft, Management, 2003, chapter 3 explains that an organisation has two main environments: the external and internal. The external environment includes elements that exist outside the boundary but have the ability to affect the organisation. Eg. competitors, resources, technology, customers. The internal environment consists of
The major problem every company encounters is the structure or hierarchy of the organization. Usually, it is in the form of a pyramid and gets narrower as it rises resulting in the few people on the top of the pyramid gets more advantages in the company. But the lower level employees are not given that importance when it comes to the utilization of the benefits provided by the company.
Structure and hierarchy come from how work and the work processes are coordinated together and relating how tasks and coordination of these tasks is to be obtained. When determining the authority in the structure of an organization, there are two major options, centralized and decentralized. A centralized organizational setup is where the authority to make important decisions is retained by managers at the top of the created hierarchy whereas a decentralized organizational setup is where the authority to make important decisions about organizational resources and to initiate new projects is delegated to managers at all levels in the hierarchy. Each choice is made based upon the main goal/task of the organization and what would better fit the organization. Whether work/the
This is an example of tall hierarchy structure as there is many levels of hierarchy from top to lower level executives