Change management, Learning, Management 2103 Words 7 Pages Key Concepts of Organizational Design University of Phoenix Key Concepts of Organizational Design This paper will provide key concepts of organization design. This type of production process requires mutual adjustment and face to face communication with co-workers and also with customers. The Enterprise Life Cycle is the dynamic, iterative process of changing an enterprise over time by incorporating new business processes, technologies, and capabilities, as well as maintaining, using, and disposing of existing elements of the enterprise. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. Technology is the way tasks are accomplished usingtools, equipment, techniques, and human know-how. These statistics are an often overlooked but significant factor that affects how real estate is priced and what types of. When decision rights and motivators are established, accountability can take hold.
A print shop is an example of a business that uses small-batch production. The six components are organizational life cycle, transformational leadership, concern for people, expert power, participative. In the past, it had undertaken reorganizations that focused almost solely on structure, without ever achieving the execution improvement its leaders expected. You can draw attention to that behavior by setting up groups to talk about it, and reinforce the behavior by rewarding it with more formal incentives. These methods may arise from tradition or the collective wishes of employees.
Internal factors are those that depend on the firm such as share bonuses, stock split, company dividends, etc. The organizational design supports the company, but it also maximizes the motivation and potential of individual employees. But even the lexicographers would agree that design doesn't have any specific definition. However, as companies move into a growth phase, control often shifts from the upper tier of management to a more pyramid-like structure, in which authority is granted throughout the various levels. Span of Control — number of individual who report to a specific manager. An organization may even try to change its position in the life cycle by changing its structure. Bigger organizations with a broad range of operational initiatives need mindful structural considerations to accomplish this optimization.
Companies that elect to produce the same products more efficiently and effectively will probably be mechanistic. Therefore, the older theorganization and the larger the organization, the greaterits need for more structure, more specialization of tasks,and more rules. Work can be divided along the vertical plane of an organization. The organizational structure should be designed in ways that specifically optimize the effort and input compared to output. Constraints on your business — such as regulations, supply shortages, and changes in customer demand — may be out of your control. They include factors like employee skills and abilities, their availability, and their socio economic and cultural prospects. It concerns itself with the study of organizations and management, with a focus on anything relevant to the management, design and effectiveness of an organization.
More levels appear in the chain of command, and the founder may have difficulty remaining in control. Nestle company presents an example of complex environment. Instead, this is an agile framework aimed at leveraging employees in any and all roles to optimize competitiveness. Division of Labor — process of dividing work into relatively specialized jobs to achieve advantages of specialization. Job design is affected by organizational, environmental and behavioral factors. If you benchmark the wrong example, the copied organizational model will only set you back.
These organizations must face increasing international competitors and growing market opportunities abroad. Advances in technology are the most frequent cause of change in organizations since they generally result in greater efficiency and lower costs for the firm. This lends itself well to pre-bureaucratic stuctures in which everyone involved is empowered to take the reins and employ their creativity and innovation. Specifically, I am interested in seeing what the organization needs when it reaches a crisis point at the entrepreneurial-collectivity stages. You can use this strong accountability and redirect people to the right decisions to support the new strategy. If they g … o too early, the casecould be lost.
The following discusses the key factors covered by an external assessment: 1. For meeting the competition, companies formulate different strategies in order to build and sustain competitive advantage different strategies followed at different times affect organisational design. They represent and influence the ways people think, feel, communicate, and behave. Fix the structure last, not first. Factors Affecting Organizational DesignAlthough many things can affect the choice of anappropriate structure for an organization, the followingfive factors are the most common: size, life cycle,strategy, environment, and technology. .
The company operationalized these new decision rights by establishing the necessary budget authorities, decision-making forums, and communications. It has 500 factories in 76 countries and selling its products in almost every country of the world. Each of these affects types the design decisions because there are different types of control and coordination problems. Priorities Corporate priorities can sometimes dictate organizational structure. When an organization is small — such as a single retail store, a two-person consulting firm, or a restaurant — its structure can be simple. If batches are small then unit cost will remain relatively high.
Does the work at your company require close supervision? A company usually is a lot more worried over the composition of its specific environment than of its general environment. Proposed Methods and Reflections — By using a questionnaire with different questions to respondents via Internet, we can analyze the data to reflect Apple's recent key success factors. For example, the frame of a car must be built before the fenders and the doors can be added later. Successful entrepreneurs covet their secrets of success and business school faculty lecture what the latest texts have written. All strategy attempts to fulfill the vision, and the organizational structure needs to support that effort. An organization in the birth stage does not yet have a formal structure. Anorganization may skip a phase, or it may cycle back toan earlier phase.
A small sized organisation encourages informal structure. In addition, the technology that a company uses while in this environment may need to be continuously improved and updated. Many managers incorporate negotiation as a key component in managing conflict in the workplace. An organization in the birth stage does not yet have a formal structure. The ideal job design is to integrate all the three elements. Three important factors in determining the managers span of control: a. This is where functional or divisional strategies may begin to emerge, enabling managers to build teams and delegate tasks.