The organizational goals of SaveWithUs Co.
The organizational goals of SaveWithUs Co. can be achieved by turning the organization into a more organic structure; this would mean more efficient use of resources than single hierarchy, flexibility, adaptability, interdisciplinary cooperation, better morale, enthusiasm. The process will include analyzing competitive forces through SWOT analysis, defining new missions and goals, and finally formulating and implementing strategy. The paper will analyze how different organizational structures will be able to achieve the goals INRODUCTION
Fundamental characteristics of an organization structure include work specialization, chain of command, authority and responsibility, span of management, and centralization. These dimensions of organization represent the vertical hierarchy and indicate how authority and responsibility are distributed along the hierarchy. Decision powers are vested in the top management Horizontal structure is characterized by shared tasks, relaxed hierarchy, authority by expertise, few rules, horizontal communication, teams, task forces and, integrators.
The new decentralized structure enables division heads to save time and money by deciding independently whether to move operations or switch suppliers. The business level strategy of SaveWithUs Co. is to compete in the market by increasing repeat business through employee empowerment and simultaneous cost reduction. By having a more organic structure problems can be tackled there and then, employees and
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While a more rigid and vertical structure will increase efficiency thorough job specialization, reduce conflicts, and will be better suited for a mass production of products. PROCEDURE As a manager one will start of with planning how new strategies will be incorporated so that operational, tactical, and corporate goals coincide. One will perform informational, interpersonal, and decisional roles to achieve the desired outcome. HOW ARE KEY STAKE HOLDERS IDENTIFIED? Stakeholders in an organic structure are primarily suppliers, employees and customers, this is determined through what kind of policy the firm applies.
The shareholders, investors and even governments become primary stakeholders in a functional organization. A corporation’s primary stakeholders can be determined through its goals, mission and what it stands for. HOW DOES THE STRUCTURE EFFECT HOW POLICY IS SET AND USED BY THAT SRTUCTURE? Functional structure i. e. a vertical structure is more useful when the strategic goals are Cost leadership, Efficiency and Stability while organic structure is better suited to situations when strategic goals are primarily Differentiation, Innovation and Flexibility.
Internal efficiency is achieved through tall structured organizations. In organic structure, small teams are made to be responsive, and have people and resources for performing a task. In SaveWithUs’s goals are to enter into mass production of the products without focusing on a specific sector of market than a hierarchal structure will be able to increase efficiency through specialization, cost reduction and a more stable environment which will not be apt to changes. A focused policy will demand the organizational structure to be organic.
As, according to the scenario the main stakeholders of the firm are the customers and employees and also that the organization produces a few kinds of products an organic environment will enable innovation and creative ideas to float through so that the organization maintains its appeal through variety and new products. HOW DOES THE STRUCTURE AFFECT THE INDIVIDUAL STAKEHOLDER’S GOALS AND OBJECTIVES? Customers are considered with decisions about quality, safety, and availability of goods and services.
Employees expect work satisfaction, pay, good supervision, empowerment and increased authority. Shareholders are concerned with profits, stability and growth of the organization. Government is there to make sure of legality of things. The extent to which the objectives and goals of these stakeholders are fulfilled are largely dependant on the type of structure the organization is based on. A flatter structure encourages empowerment of employees, maximum customer satisfaction and all those factors which are based on humanistic perspective.
While, a hierarchal structure, is more concerned about the goals of the shareholders and owners rather than everyone associated with the firm. WHEN PROPOSING AN IT PROJECT, HOW DOES THE STRUCTURE AFFECT THE APPROVAL PROCESS? Structure plays a vital role in how a decision is made both through consensus or sole authority, how is it carried out, and finally how is it implemented. When proposing and IT project for SaveWithUs Co. there will similarly be a whole procedure carried out before the project can be implemented.
A loose structure will not only take decisions and suggestions of employees, customers, frontline managers and departmental managers for the proposed project but will also give them necessary powers to implement if they feel that the project is worthwhile. A faster and easier method with less rules and documentation will be used so that the project is up and running in the least possible time to provide customer satisfaction. Hierarchal structures are means of excess documentation and increased amount of resource wastage.
A proposal in hierarchal structure will take more time to be implemented and take effect than in an organic structure. A proposal made by the employees will go to the immediate boss, a fair amount of energy and resources will be made to convince him of the necessity of the project. If he is convinced, he will recommend the proposal to next manager in the hierarchal structure and at each stage this process of convincing and recommending will be carried out before finally the top management accepts the proposal.
This is due to red-tapism present in hierarchal organizations. CONCLUSION An organic organizational structure is better option for SaveWithUs’s goals and objective to focus and differentiate. This will require new ideas from both the employees and customers. On the other hand a rigid structure might bring efficiency to the production but it will eventually proof fruitless as the products demand changes and variety.
Also, only employee empowerment, customer support, adaptability will mean better solutions to increase repeat business REFRENCES: Practice Made Perfect: The Discipline of Business Management for Financial by Mark C. Tibergien, Rebecca Pomering Organizational Structure and Information Technology by Jon Harrington Strategic Organizational Diagnosis and Design: Developing Theory for Application by Richard M. Burton, Borge Obel Structure in fives: designing effective organizations by Henry Mintzberg