How to Modify Its Present Organizational Structures for More Efficacy and Effectiveness?
Organization's success in the current business environment characterized by volatile, discontinuous and continuous changes is determined by the organization's ability to respond to these changes promptly. An organization should adopt a nimble organization structure that allows it to respond to the changes by generating new dynamic managerial capabilities. In the modern organization structures where cultural diversity and technological revolution influences, it is important to adopt a flat organizational structure for easier and faster communication, the improved interpersonal relationship between the managers and the lower level employees and ease of information sharing. The flat organizational structure can also be effective in minimizing or preventing resistances as all the employee co snider each other and their managers as their equal and also allows them to participate in decision making. The organizational would shift from the hierarchical organization structure is marked by bureaucracy and red tape and adopt the flat organizational structures where employees feel and develop the sense of ownership of the information technology projects.
A good company should encourage the development of new dynamic competences that must also be reconfigured in line with the organizational goals. The company must have in place structures that allow for the recognition of the changes in the business environment and using the organization's resources and competencies to address the changes in the environment. Often the most effective way is to achieve a perfect fit between organization's resources and the organizational objectives.
There will only three levels of hierarchy in the organization. The CEO will be the head of the organizational followed by the departmental heads or divisional heads for each product. The departmental heads would report directly to the CEO. Finally, all the employees will be in one level with equal reporting and decision rights. There will be no deputies to the departmental heads. Never the less, the CEO will be open to suggestion from all the employees without red tape. All employees would be involved in decision making through the centrally located suggestion box. It is also important to ensure that adequate data is collected to aid in decision-making. For example, it is important for the company to invest in big data collection and analytics and probably make adequate provision for subscription in data analytics. In the current business environment, data-driven decision tends to be more effective as compared to qualitative decisions.
Recommendations for Alternative Approaches to Promote and Implement Decision Making
The organizational structure will be like a holacracy where management and organizational governance are decentralized. Authority and decision making in the new organization structures would be distributed to the self-organizing teams instead of the management hierarchy. Through the distributed teams especially team developed around products and function, each team will self-organize and make the decision on their products design, development and production. It is important to note that the goals of the new organizing structures.
Secondly, the improved decision making, most early deliberation should be devolved to the departmental levels where teams discuss and make early deliberations at the lowest level. Devolving decision making or delegating some work to the lower rung of the organization can be effective in reducing time spent in decision making as the employees are involved at the lower level making them part of the project and giving them a sense of ownership in the projects.
The decentralized team would also be encouraged to make a data-driven decision. Predictive, prescriptive and descriptive analytics must be used to ensure that all sentiments and perceptions are integrated into the product decision making. The current organization structures still rely on the older decision making processes that mainly relied on sentiments and rationalization of the older people at the higher echelons of the company. Most decisions made by the company affect both the internal and external stakeholders which means that if the management only focuses on meeting the external customer's needs, the employees are often overlooked. Overlooking the employees would be detrimental to the organization's stability, sustainability and profitability in the long run.
Other Relevant Recommendations or Issues That Were Identified
Finally, changes in the organizational structures are likely to attract resistance on the part of the employee. Such radical changes might lead to job insecurity or might affect the employees earning capacity. Is immoral for the management to ensure that there are proper's structures in place of dealing with resistances, inconsistencies in the employee performance. Employee resistances can be disastrous to the company's operation. Therefore, it is important for the management to have strategies in place that would help in business operations recovery after resistances and reduce the Recovery Point Objective (RPO) and Recovery Time Objective (RTO).
Implementation new lessons in the organza ion require a change management strategy. Therefore, in order to effectively, and efficiently implement new strategies, technologies and lessons into the organization's framework, it is important to first ensure that employees are brought to speed with the planned changes and are better prepared for the outcome of the changes whether beneficial or adverse. The management should also provide assurance on how to adverse outcomes would be managed.
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