This enables large organizations to act like small ones in dealing with change. They do not have to overhaul a large infrastructure. Using informal structures, they can experiment and adapt on a small scale before making large resource commitments; they can also redirect personnel quickly and avoid the cost of overall restructuring. Virtual Organization Food for thought. Organic or Open Organization. The usual goals for organizations are high productivity and efficiency. Organizations are seen as reliable machines and employees are considered to be sub-machines or constituent parts of the machine.
This type of organization requires stable environment in which it operates and it is not subjected to rapid change and development. The emergence of globalization and the high connectivity through telecommunication channels has on the one hand provided the firms with opportunity in the shape of new markets.
On the other hand, this also has its adverse consequences in that it encourages the threat of substitute products and services, usually from small and medium sized firms, operating in manufacturing and service industries and communities at much reduced costs. The environment therefore becomes turbulent and subject to rapid change. Well documented and established rules, stringent policies and procedures for business processes and manufacturing regimes become hurdles that undermine the ability of organization to adapt to the changes in the environment quickly and effectively.
Organic organization philosophy promotes the encouragement of creativity of individuals. It is based on the hypothesis that productivity and adaptability to rapid change is increased when employees are placed at the centre of their environment and they are allowed to manage themselves and their resources. When their creativity is accounted for and rewarded.
When their continuous development is encouraged through provision of opportunities and resources. This type of system or organization allows for the de-centralization of jobs. Formal procedures are de-emphasized.
Modular Organization. Modularity in organization changes the traditional hierarchical structure to form loosely coupled networks of organizational actors. The underlying idea is that these loosely coupled actors or objects would quite easily form and reform organizational components that are loosely coupled.
The idea of modularity in organizational structure goes hand in hand with idea of modularity in software development. One of the software engineering goals for software design is that we should design software applications in a highly modular fashion. Computing applications should be made of components that are highly modular. That is each components should do one thing and one thing only. For example in a Human Resource Management application a component may be responsible for creating Wage Slips.
This is a tangible and of value business process and outcome. The same component should not also manage employee schedule. It should be modular. Furthermore, software components should be loosely coupled. That is if we change the internal structure or implementation of one of the components, this does not adversely affect the performance or functionality of other components that it interacts with.
In other words these components should be loosely coupled. In building systems we endeavor to build solutions made up of components that are highly modular and loosely coupled. These are organizations where non-core functions are likely to be sub-contracted or outsourced. This is a direct effect of the use of technology and telecommunication channels for doing business. Using affordable technology and connectivity, companies can maintain relationships with business partners at lower costs than ever before.
Departmentalization means grouping activities and people into departments, making it possible to expand organizations, at least in theory, to an indefinite degree. Departmentalization refers to the formal structure of the organization, composed of various departments and managerial positions and their relationships with each other. As an organization grows, its departments grow and more sub-units are created, which in turn add more levels of management.
Two particular things need to consider before setting the formal structure of the organization or the Departmentalization. Related: Managers Must be a Leader. Departmentalization results from the division of work and the desire to obtain organization units of manageable size and to utilize the managerial ability. An organization structure and design are shaped significantly by the Departmentalization followed.
An organizer is free to use any means of departmentalization in constructing an organization structure. Functional departmentalization groups together jobs which are involving the same or similar activities. It allows the organization to staff all important positions with functional experts and facilitates coordination and integration. When a company puts its focus on customer needs and wants, it creates departments in accordance with different class or type of clients and customers.
This is known as customer departmentalization. It pays attention to customer satisfaction to enhance the sales figure and brand image of a company. When a corporation starts independent lines that operate as separate entities, it is known as divisional departmentalization. This type of departmentalization integrates project and functional departmentalization to improve economies of scale.
This type of departmentalization is created in extreme conditions when the organization needs to address a particular and special circumstance. For example, if there is a sudden natural disaster in your area the company will create a special task force department to handle the related.
An organization encourages departmentalization to increase its efficiency and productivity. The factors that are considered to create suitable departments are as follows-. Specialization helps the workers to become experts in their field so that it can maximize efficiency. It is important to group employees and activities in such a way that it can result in work specialization and thus ensure economy of operations.
Effective control will help a company to achieve the objectives of a company inefficient and economic Create departments in such a way that timely action can be taken to ensure optimal performance. Several activities are in urgent need of coordination and should be grouped together in one department.
Proper attention is an important factor in creating departments. It ensures special attention to vital areas and no duplication of any activities. Departments should be created after giving emphasis to human consideration like aspiration, attitude and cultural pattern of the employees.
Attention to local conditions and make adjustments as per the available resources is important before creating necessary departments. The conditions of geographical areas vary from one to another hence be aware of local conditions beforehand.
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