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Restructuring of organsation Essay

By any measures restructuring with in the organisation is very vital and plays a key role in success of an organisation. In this assignment I am taking the opportunity to discuss how restructuring with in an organistaion can have positive or negative effects over its employees and other stakeholders with in the business. I have illustrated my answer by using two companies; in my research I have briefly looked through two organisations how they went through restructuring and what were the advantages and disadvantages they had. I have also discussed how restructuring have effect on the general morale in the work force.

Organisation. “Organisations are social entities that are goal-directed, deliberately structured activity systems with an identifiable boundary. ” Daft, (1992:7). Organisational structure: Daft, (1992:179) says, Organisational structure is reflected in the organization chart. The organization chart is the visible representation for a whole set of underlying activities and processes in an organization. Organisational structure designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors.

Organisational structure identifies the grouping together of individuals into departments and the grouping of departments into the total organization. Organisation structure includes the design of systems

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to ensure effective communication, coordination, and integration of effort across departments. Organisational Theory. Organizational theory is not only a collection of facts but it is the way of thinking to see and analyse how organisation can work more effectively and efficiently. Organizational theory helps the management to see and think the rules and regulation in organizational design and behavior.

Organisational theory can provide an appreciation and understanding of what is happening in organization. (Daft, 1992:18) Classical Management Theory. Fredrick Winslow Taylor (1856-1915) argued that efficiency, standardization and discipline would result from a process of scientific management of work tasks. Taylor explained in his theory of scientific management that there should be clear difference made between the management roles in organisation, planning a job, the role of workers.

There should be adopting the scientific selection method of recruitment of workers. A scientific selection of employee should identify right man on the right place. According to the Taylor job should be standardized and simplified, there should be division of labour and each worker should conduct a minimum of movements, preferably involving just one set of actions. Organisational task should be well defined and it is the responsibilities of management to conduct and achieve the well defined task according to the desired state.

Taylor argued that when workers give high wages then this would increase in productivity, there should be motivation system this would lead to workers satisfaction in the shape of bonuses to the level of out put, and this would lead to increase the performance and efficiency of workers. (Taylor cited in Brooks, 1999:113). The next phase in the management history was termed administrative theory. At that time managers were struggling with the problems of organization larger and larger organizations and defining the emerging role of the professional manager.

Fayol came up with answers to both issues in his theory of administrative. Fayol defined the functions of the manager, as planning, organizing, controlling, commanding and coordinating activities. Fayol explained in his theory that manager can handled the problem if they follow the functions of management. (Fayol cited in Kolb et al, 1995:28) Weber contributed greatly to the understanding of the ideal bureaucracy and the different types of authority that were appropriate for it. Bureaucracy was viewed as a solution to the discrimination, favortism and unprofessional behavior found in organizations of the day.

During this era people believed that if manager designed the organizations correctly and followed the principles of management that limited number of people report to each supervisor, having one boss and selection of employees on merit based then the organization would succeed. However this formula for success was further complicated by the famous Haworth studies that took place in the late 1920-1930’s, in this time credibility of business people was low due to the stock market crash, and feeling of exploitation in union movement.

Decrease in number of migration had made the result of scarce and due to this the needs of workers began to receive attention. Kolb et al, (1995:28) Fordism follow such scientific management principles as the use of a detailed division of labor-intensive management work-planning and close supervision and, in fact, extends these considerably in the close attachment the individual to the work station and in the mechanising of work handling. But it goes beyond Taylorism, which treat labour strictly as acommodity,in making a connection between labour management policy and attention to the markets.

Fordism is essentially a mass production process which recognize that the people which it employs are part of the market for its product Therefore it recognize the necessity of taking an interest in the lives of workers as consumers as well as producers. Treatment of employees which recoognises that workers are also consumers whose earning power and consumption attitudes as well as their efficiency affect the success of the activity. Carden, (2005,lecture notes)

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