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The influence of Globalization on Organization
The influence of Globalization on Organization
Globalisation in international business
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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.
Matrix structure is first introduced in the aerospace industry in the 1960s and become one of the popular organizational design options in today’s business and industry (Derven & Alexandria, 2010). Burns and Wholey (1993) poinited out that matrix structure were used in advertising agencies, aerospace firms, research and development laboratories, hospitals, government agencies, and universities. Matrix structure is the combination of two or more different structures and take the advantages of the pure functional structure and the product organizational structure (Robbins & Judge, 2011, p. 497). The employees in the matrix may have two bosses: their functional department managers and their product managers. For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a project manager while working on that project. In many organizations, a matrix structure is implemented to address the requirement to do more with less and become more agile. The matrix structure, which focuses on horizontal as well as vertical management, has become more widespread as a result of globalization and the...
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References:
Burns, L. R., & Wholey, D. R. (1993). Adoption and abandonment of matrix management programs:Effects of organizational characteristics and interorganizational networks. Academy of Management Journal, 36(1), 106-139.
Carter, L., Ulrich, D., & Goldsmith, M. (2005). Best practices in leadership development and organization change: how the best companies ensure meaningful change and sustainable leadership. San Francisco, CA: John Wiley and Sons.
Derven, M., & Alexandria, T. D. (2010). Manging the matrix in the new normal. T + D. Alexandria, 64(7), 42-49.
Robbins, S. P., & Judge, T. A. (2011). Organizational behavior (14 ed.). Upper Saddle River, NJ: Pearson.
Sy, T., & Cote, S. (2004). Emotional intelligence: A key ability to succeed in the matrix organization. Journal of Management Development. 23(5). 437-455
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
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
Organizational design helps determine which structure best suits the organizations needs by showing the company where its flaws are and allowing the company to adapt and fix its’ deficits. For a big company like Best Buy it seems the best choice for an organizational structure would be a hybrid or matrix structure. The company is so huge and has so many departments, it may take a couple of different strategies and ideas to keep the company running efficiently and profitable. Also, an organizational structure that works in one area may not always be the best for another are. Companies must find organizational structures that are efficient financially but also productively.
The team/matrix structure within this organic model clearly creates product innovation, job satisfaction, across the board high profits and lower costs. This is a result of the organic model with a team/matrix structure influenced by their innovation strategy.
Robbins, S.P. & Judge, T.A. (2009). Organizational Behavior. Upper Saddle River, NJ: Pearson Education, Inc.
First of all, organizational structure determines the hierarchy, the levels of communication, and how job tasks are formally divided, grouped and coordinated within an organization (Langton, Robbins, & Judge, 2013). There are six key elements that managers need to address when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization (Langton et al., 2013). The way in which an organizational structure is constructed and implemented can affect company productivity.
Organizational structure is one of the three key organizational assets that could contribute to the effectiveness of operations of any organization (Zheng, Yan and Mclean 2009) It is joined together by different flows of information, decision processes, hierarchy of authority, specialization and working materials. (Enz 2009; Mintzberg 1980) Furthermore, it also determines the operating workflow, control of information, decision-making in the organization and the line authority (Mintzberg 1980). The facets of the organizational structure, the relationships that exist within it, and how the business processes (Bititci et al 2011) are controlled, determine the managerial style that should be utilized in addition to the strategies the organization could implement. Going further, a company’s organizational design and the parts that constitute it are seen as a contributing factor to superior performance, which ultimately provide an organization with competitive advantage over its competitors. (Enz 2009; Zheng, Yang, and Mclean 2009)
Kinicki, A., & Kreitner, R. (2009). Organizational behavior: Key concepts, skills and best practices (customized 4th ed.). New York, NY: McGraw-Hill Irwin.
In their 2005 book, Understanding and Managing: Organizational Behavior, Jennifer George and Gareth Jones define organizational structure as "the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate and work together to achieve an organization's goals." A logical consequence to an organization's structure is the resulting culture, which George and Jones further define as "the set of shared values, beliefs, and norms that influences the way employees think, feel, and behave toward each other and toward people outside the organization." Finding the right structure for one's organization is vital to its strength and longevity. Appropriate structures are commonly found by trial and error; most continue to evolve as the organization enters different stages of its existence. Structures are defined and redefined in accordance with the organization's strengths and weaknesses, maximizing one while attempting to decrease the other. Over the course of change of structural eras', so too will the culture change.
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.
An organization is set up to generate the results and behaviors that it is currently producing in order to change the unwanted behavior or results management must make changes to the organization’s system. To properly evaluate the Fleet department, management will need to utilize systems theory by individually examining all subsystems include personnel, department structure, equipment etc. while establishing how each component affects the department or system as a whole (Caldwell, 2012). We will also be using the six box organizational model that was created by Marvin Weisord. The Six Box Organizational Model contains six-variables they include purpose, structure, rewards, helpful mechanisms, relationships and leadership (Stahl, 1997).
Bob’s suggestion to the R&D department is mechanistic organisational structure. This organisational structure divides the tasks, duties and responsibilities among the company members. There are four main principles of scientific management of mechanistic organisational structure, which include developing the standard of work practices and standardising the used by workers, selecting and training every worker scientifically, ensuring the work done correspond to the standard by collaboration between management and employees, planning and making task assignments by management and carrying out assigned tasks by employees. In addition, bureaucracy is another characteristic of mechanistic organisational structure. Bureaucracy involves six features,
Employees essentially have two bosses, one project boss and one function boss (Scheneck, & Alcorn, 2012). One advantage of this structure is that employees are organised around problems in their project teams, which allows teams to readily access the expertise of other employees due to experience and further development in their function (Scheneck, & Alcorn, 2012). Furthermore, the project teams develop creativity and innovation due to less stringent hierarchical control and allows new projects and products to be researched and developed quickly (Scheneck, & Alcorn, 2012). The innovative, and fast-developing nature of the matrix structure means it is effective for managing specialists and projects in high-tech
...zation structures, the employees would able to work together to strive for an excellent goals. The function of organization may let the employees know clearly what their roles and responsibility and task they have to carry on. Organization structures provides the advanced opportunity with high level postions and the employees can clearly understand what they positions in a company. Thus, business process will be carry out most efficiently when all the employees understand theis roles and proper producers. Besides that , organization structures also help the team in a company work together more closer. These teams can be organized by department type, such as accounting and marketing. Organzation structures keep business running smoothly with a clear plan for overcoming obstacles. Therefore, the effective planning can be carry out with a well-structued organization.
Kreitner, R. & Kinicki, A. (2010). Organizational behavior (9th ed.). New York: McGraw-Hill. IBSN: 978-0-07-353045-1.