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Organizational Structure

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Organizational Structure Submitted to: Prof C.P.Shrimali By: Sachin Singh PGHR-42 ORGANIZATIONAL STRUCTURE The organizational structure plays an important role in day-to-day functioning of the organization. Delegation of authority and employee reporting framework are some of the factors that determine the organizational structure. An efficient structure facilitates decision making by smoothening the span of control or the scope of the manager. The objective here is to understand why organizations have the structure that they do. By "structure" its meant things like degree and type of horizontal differentiation, vertical differentiation, mechanisms of coordination and control, formalization, and centralization of powerAccording to Taylor, Fayol, Weber and other classical theorists, there is a single best way for organization to be structured. Yet organizations vary considerably on structural attributes. The objective of much research has been to understand what determines these variations. This raises two issues: Is it random or systematic? Are some organizations simply less perfect than others, or are different designs better for different situations? It can be said that whereas strategic choice and organizational design are immensely complex there is an underlying logic based on the concept of 'fit': Certain strategies and organizational designs do fit one another and the environment, and thus produce good performance, and others do not. Moreover, there are frequently recognizable, understandable, and predictable relations among the environmental features and the choice variables of strategy and organization that determine which constellations of choices will do well and which are less likely to do so. These relations arise for both technological and behavioral reasons. Recognizing these relations and understanding their implications can guide the design problem." The factors that what structure is to be chosen depends on the shape, specialization, distribution of power and departmentalization .Shape is determined by the number of people working in each control level, while specialization includes different specialties that shall be performed in the organization. Distribution of power refers to vertical and horizontal distribution of power .Horizontal distribution signifies more and more power of decision making to sub units. ...read more.


Virtual Organizations and missing Organizational Structure. These are organizations which do not necessarily have any physical presence or permanence. E-commerce companies such as amazon.com are good examples: they have a 'reality' only on the worldwide web. They can be formed and re-formed to meet the needs of new projects. From a HR perspective, virtual teams may be composed of specialists working from home, 'telecottages' or small companies. They work together for the purposes of the project. Selecting, managing and assessing the performance of virtual team members is a whole new ball game. "Teams dissolve on completion, to reappear in new combinations for other tasks. Departments, divisions and offices disappear leaving an amorphous mass of people connected electronically and meeting - perhaps through video-conferencing - only if and when required. Traditional hierarchical structures have no role in this kind of organizational structure. "Truly virtual organizations create new problems for human resource management. A networked company does not require a personnel function but its core management must be adept in managing people at a distance, some of whom may not be 'employees' as such. They are true 'human resource managers' and a true organizational is missing in these organizations.Nerw questions arise in context to these organizations.How does performance management or HR development take place in such circumstances? How are they 'managed' on a day-to-day basis? Who resolves conflict and disagreement? 21st Century Organizational Trends Globalization * Increasingly globalize sales, manufacturing, research, management * Movement from direct exports to having sales offices in different countries to having manufacturing to all functions spread across the globe * Increasingly globalize labor market * Due to: o reduced cost and improved quality of international transportation and communication o search for unsaturated markets o exploit regional cost and expertise differences Diversity * Workforce getting more heterogeneous sexually, racially, culturally, individually, etc. * Source of both innovation and conflict/communication problems * Need to cope with different styles of interaction, dress, presentation, and physical appearance. ...read more.


Team members develop their own process for identifying and rotating members in managerial roles. Often, authority at any given time rests with whoever has the most expertise about the current activity or task in the overall project. Often members are trained in various problem-solving techniques and team-building techniques. These teams work best in environments where the technologies to deliver the product or service are highly complex and the marketplace and organization environments are continually changing. Self-managed teams pose a unique challenge for the traditional manager. It can be extremely difficult for him or her to support empowerment of the self-managed team, taking the risk of letting go of his or her own control. Learning Organizations In an environment where environments are continually changing, it's critical that organizations detect and quickly correct its own errors. This requires continuous feedback to, and within, the organization. Continual feedback allows the organization to `unlearn' old beliefs and remain open to new feedback, uncolored by long-held beliefs. In a learning organization, managers don't direct as much as they facilitate the workers' applying new information and learning from that experience. Managers ensure time to exchange feedback, to inquire and reflect about the feedback, and then to gain consensus on direction. Self-Organizing Systems Self-organizing systems have the ability to continually change their structure and internal processes to conform to feedback with the environment. Some writers use the analogy of biological systems as self-organizing systems. Their ultimate purpose is to stay alive and duplicate. They exist in increasing complexity and adapt their structures and forms to accommodate this complexity. Ultimately, they change structure dramatically to adjust to the outer environment. A self-organizing system requires a strong current goal or purpose. It requires continual feedback with its surrounding environment. It requires continual reference to a common set of values and dialoguing around these values. It requires continued and shared reflection around the system's current processes. The manager of this type of organization requires high value on communication and a great deal of patience -- and the ability to focus on outcomes rather than outputs. Focus is more on learning than on method. ...read more.

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