Organizational Leadership

1797 Words4 Pages

Table of Contents:

1. Introduction.

2. Comparative analysis of S & F Company's formal organizational structure with other organizational structures.

3. Impact of informal culture on formal structure.

4. Role of Power and Politics.

5. Recommendation.

Introduction:

In the face of a technological revolution, the tele-shopping and mail-order

industry must develop new and more convenient ways for their customers to

purchase their goods. In the last six months the Smith & Falmouth Company

has launched an e-tailing division: Smith & Falmouth On-line. This division

is crucial to S & F's growth strategy over the next three years.

Organizational structure refers to the division of labor as well as the

patterns of coordination, communication, workflow, and formal power that

direct organizational activities. An organizational structure reflects the

organization's culture and power relationships (McShane, 2002).

Comparative analysis of S & F Company's formal organizational structure with other organizational structures:

The current organizational structure at the S & F Company is a formal

hierarchy mixed with limited informal communication between teams. In a hierarchical structure legitimate power is given to individuals who then use this power to direct work processes and allocate resources. There is direct supervision within groups. The corporate structure here is a hierarchical one, where the chain of command flows downward. This structure is different from other structures such as complete informal communication, and standardization because they are less rigid in there processes.

Many organizations try to improve the quality and consistency of a product or service by standardizing work activities through job descriptions and procedures.

Standardization coordinates work requiring routine and simple tasks, but

is not effective in complex and ambiguous situations. Additionally, informal communication is a coordinating mechanism in all organizations. It includes sharing information on mutual tasks as well as forming common mental models so that employees synchronize work activities using the same mental road map (McShane, 2002).

Impact of informal culture on formal structure

Informal communication permits considerable flexibility because employees

transmit a large volume of information through face-to-face communication

And other media-rich channels, but it can be time-consuming. Consequently,

as organizations grow, they develop a second coordinating mechanism in the

shape of a formal hierarchy. The formal hierarchy has traditionally been

applauded as the optimal coordinating mechanism for large organizations (McShane, 2002).

To achieve S & F's goal: to become a leader in the Online Sales Channels, and become a profitable unit, management must recognize the organizational structure, assess the current situation, and work together to allow for innovative achievements.

Within large organizations exists an informal culture that influences the

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