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Operational Design of Organizational Design

All the employees in the company have tasks and work activities, line of authority and decision making responsibility, this where the operation design comes in. This part of the organizational design is going to show the roles and processes of the company. Work Specialization Work specialization is also known as the division of labor, i. e. where the work tasks are divided and subdivided into individual jobs for employees to accomplish. Each employee of the departments needs to perform on those tasks which are relevant to their skills or specialized functions.

For example, specialization of work can clearly be seen on an automobile assembly line where each individual has to perform the same task over and over again, why, because it is not feasible to let a single employ assemble the entire car him/herself. (Drucker, 2007) Command of Chain Chain of command is the line of authority within the organization which is unbroken and that connects all the employees within the organization. It is with the help of chain of command that every employee knows to whom he/she has to report.

There are two principles which come under chain of command and they are; unity of command (that can be defined as

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where each and every employee of the organization is held accountable for his/her action to one supervisor) and scalar principle (that can be defined as

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the clear cut line of authority which includes all the employees within the organization). For example, the human resource manger reports to his/her senior manager and the senior manager reports to the director of the HR department and the director directly reports to the CEO of the Company.

Authority Authority is the rights given to the manager to make decisions, issue orders to his/her subordinates and allocate different resources so that the employees are able to achieve their job’s goals and objectives which results in achieving the desired goals of the organization. Authority can be divided into 2 parts; • Line Authority: where the individuals in the management positions have the right to direct and control their subordinates. • Staff Authority: it is a form of authority which is given to the staff specialists in their specialized areas.

(Drucker, 2007) Span of Management The number of employees that report to their supervisor is called span of management or even span of control. This basically shows that how closely the superior is able to monitor his/her subordinates. In recent studies it has been found that a supervisor is able to monitor up to 30 to 40 subordinates at a time. The span of management is divided into two forms of structures; tall structure (which is the old one) and a flat structure (which is the new one). It can be seen in the following figure; Figure 4: Tall & Flat Structure

(a) (b) Centralization & Decentralization Centralization means where the decision making authority lies near the top level of the management. For example, Marriott is a centralized organization, i. e. it gives its decision making authority only to the top management for its operations in its hotels worldwide. Decentralization means where the decision making authority is distributed in the entire organization, i. e. even the lower level managers or employees have the right to make the decisions on their own regarding their work tasks.

For example, Johnson & Johnson provides almost complete authority to its 168 operating companies to create and market their own products worldwide. (Drucker, 2007) Formalization Formalization is documentation in the written form; this document is used in directing and controlling the employees throughout the organization. The document is actually the written policies, rules, procedures and job descriptions which need to be followed by each and every employee. Empowerment of Employees

Empowering the employees can help the organization to improve its performance and productivity and it will help the organization to achieve its goals and objectives within its targeted time. Empowerment basically means that the employees have the right to make decisions, i. e. they are provided with power of authority, training and resources, to accomplish their given tasks. (Drucker, 2007) Solution Provided by Organizational Design Problem There are different problems that can concern any organization; one of these problems is the flow of communication between the departments to make the right decision on time.

What happens is that sometimes there is no free flow of communication between the departments therefore decisions regarding the organization’s structure, the systems control, human resources of the organization and network systems cannot be made, there is poor coordination between the departments and inadequate procedures. Therefore the management is not able to recognize the threats and challenges and the end result is that they are not able to invent solutions that would help solve the situations that might also arise in the future. (David, 2006) Solution to the Problem

The solution to this problem can be solved by using the tools and the frameworks of organization design. The management can introduce the team approach within the organization; this would help to improve the flow of the communication. The organization will become more flexible and it will help to break the barriers that have been erupted due to the traditional approaches of the departments. With the formations of works teams the division of work will become easier among the employees of the organization and the coordination of their work activities.

The organization itself would become a flat organization rather than a tall one and this would lead the organization to become more decentralized. And when the organization becomes decentralized this will help to motivate the employees and this would result in free flow of information between departments. The organization is going to become a more of an organic structure, where the horizontal structure is dominant. The tasks between the teams and the employees would be shared, the hierarchy of the organization is going to be loose, there will be horizontal communication i.

e. face to face communication between the employees, and the decision making process is going to be decentralized. With the use of team approach, better coordination is achieved and there is employee commitment to the organization, which would not have been possible with a functional or divisional approach. (David, 2006) References Brickley, J. , Smith, C. , Zimmerman, J. & Willett, J. (2002), Designing Organizations to Create Value: From Strategy to Structure. McGraw-Hill David, F R. (2006), Strategic management: Concepts and cases. Prentice Hall

Drucker, P F. (2007), Management: Tasks, Responsibilities, Practices. Transaction Publishers Daft, R L. (2008), New Era of Management. CENGAGE Learning Kaplan, R S. & Norton, D P. (2006), The Strategy – Focused Organization. Harvard Business Press Miles, R & Snow C. (2003), Organizational Strategy, Structure, and Process. Stanford Business Books Mind Tools (2010), Organization Design: Aligning Organizational Structure With Business Goals. Available from < http://www. mindtools. com/pages/article/newPPM_95. htm>, retrieved on 15th August’10

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