Organizational structure can be defined as the “formal arrangement of jobs within an organization” (Robbins & Coulter, 2009, p. 185). Having a defined and unified structure helps employees work more efficiently. Jacques Kemp, former CEO of ING Insurance Asia/Pacific, realized this need early on in his role. The company had been performing well and recently acquired another insurance company to become “one of the largest life insurance companies in Asia-Pacific” (Schotter, 2006, p. 4). However, Kemp’s proactive personality led him to seek out ways to achieve more efficient coordination between the regional office and business units (Robbins & Coulter, 2009). Kemp noticed that “most business unit managers did not even know the current corporate standards” and he began searching for a way to manage the managers (Schotter, 2006, p. 5). ING Insurance Asia/Pacific’s organizational structure was mechanistic and fairly well structured, but for a company that had recently been involved in a major acquisition and was divided across 12 geographically dispersed markets there was a great need to tweak this structure to unify the company (Schotter, 2006). If I had been in Kemp’s position as CEO, I would have made modifications to the organizational chain of command, formalized business processes, and used technology to stimulate collaboration amongst the region to help this company overcome organizational design challenges.
ING Insurance Asia/Pacific’s (ING A/P) organizational design structure in 2003 can be classified as moderately mechanistic with functional design of their regional office and a divisional structural design of their business units. ING A/P was organized into business units by country with one regional office in Hong Kong ...
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Organizational structure is the linking of departments and jobs within an organization. The idea of self managing teams was a significant insight gained into organizational structure. Bolman and Deal state that self-directed teams typically produce better results and
Twenty-first-century societies could be characterized as the modern humanity with Cutting-edge technology and multiculturalism, with extreme materialism and economical drive. As a result, any modern organization, regardless of its size, type or nature, has to depend upon the factual structures and best management paths to survive in today’s civilization. Lee G.Bolman and Terrence F. Deal’s (2013) book “Reframing Organizations” presents most updated and developed managerial approaches to leadership and structure for the organizations.
As an organization develops, it establishes among many things a sense of structure. In this; depending on its purpose of existence and how it carries out processes to meets its goals, it attempts to structure its staff and departments to optimize resource usage and maximize profits. Simply put, it is the way the company is organized to perform work. However as a generally noticeable trend, businesses are changing over the years and as Craig A. Stevens (1995) sites, "There may not even be one right organizational structure in any one company. Chances are, if all your divisions look the same on the organizational chart you have a problem.”
Growth of an organization tends to bends flat structure that had previously implemented within the organization into more bureaucratic structure if roles are differentiated and roles are specialized (Astley, 1985). Flat organizations is generally possible only in smaller organizations or individual units within larger organizations. As organizations grows and reach critical size, organization can retain a streamlined structure but often times cannot keep a completely flat structure as they were before without impacting productivity.
(2014) is “the way in which leaders interact, make decisions, and influence others in the organization” (p 237). The culture needs to foster cooperation from all areas of an organization, while providing the ability for adaptation and growth. Not all organizations culture will be the same, there is not a correct one that can blanket all organizations to cozy success. (3) Talent Systems. Human capital drives all organizations, the right people need to be in the right jobs with the correct opportunities for growth and advancement. There must be a constant search for strategic thinkers and leaders able to step up with called upon. The authors mention “Talent Sustainability” (p. 248), there must be enough qualified employees ready to move up so the organization will not stall while searching for others to replace others due to attrition, or other opportunists. (4) Organizational Design, must take a number of variables into account while providing structure to an organization. Hughes et al. (2014) state “the design of the organization is a trade-off between options, each with advantages and disadvantages” (p 253). The correct design can help clear the hierarchy of an organization and the proper channels for
The insights in this book, if applied, are destined to influence the organization because they follow the basics of a structure's influence on behavior. Change the structure and the organization will change...Change it intelligently and the organization will advance. Buy the book and step to the forefront of organizational leadership...but be forewarned: Bring a teachable spirit. Be willing to unlearn a few assumptions to make room for Fritz's simple and strategic insights. Managers wouldn't begin to think about change in an organization without answering the 11 Questions first (they're in the book). Finally, and for Pete's Sake, Peter Senge wrote the forward for his "friend and mentor" Robert Fritz.
Kotter, J. P. (2007). ‘Leading change: Why transformation efforts fail’. Harvard Business Review, January: 96-103.
An organisation can be structured in many ways which depends on an organization’s strategy and objectives. Therefore the organizational structure defines how tasks are controlled within a business. This is to allow correct allocation of tasks to different functional teams. These teams are developed and allocated specifically on the performed tasks in order to meet the organization’s objectives and required goals. Delic, A., Alibegovic, S. D. and Mesanovi, M. (2016) found that a narrower Organisational structure with very fewer hierarchical levels is appropriate for the development of intrapreneurship within an organisation. (Damanpour, 1991; Fadeyi et al., 2015) added that an organisational structure includes the nature of formalization, the
According to our textbook, organizational structures are defined as “how job tasks are formally divided, grouped, and coordinated (Judge and Robbins 432).” Once being rigid and highly centralized, the past 50 years have brought forth a shift to these structures, now being more flexible and decentralized. There are many advantages and disadvantages that come with both of the structure types. These new flexible and decentralized structures have affected employee/manager relationships by allowing more effective decision making, improving contact between lower level to higher level workers, and motivating the employees and local managers. They have also impacted organizational strategies in various ways.
Fortunately, Mintzberg’s work has revealed the significance of properly explaining and comprehending the structure of an organization. Although, structure can be a complicated matter, it is the one thing that dictates the relationship of roles in an organization and how employees behave. For instance, the active duty clinic at Kenner Health Clinic, has a hierarchy at the top that is oblivious to certain concerns, not to mention, the poor structure, which, allows management personnel to neglect their responsibilities and ignore the mass confusion within roles. For this reason, it is essential to carefully analyze, explain, comprehend, and enforce the structure of an
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
... and incentives to implement strategy. The importance of structure persists even in the face of the growth of the internet, globalization, and changing demographics of the workforce.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
Organizations must operate within structures that allow them to perform at their best within their given environments. According to theorists T. Burns and G.M Stalker (1961), organizations require structures that will allow them to adapt and react to changes in the environment (Mechanistic vs Organic Structures, 2009). Toyota Company’s corporate structure is spelt out as one where the management team and employees conduct operations and make decisions through a system of checks and balances.