level organization group essay


Organizational set ups developed through the ancient times of hunters and collectors in tribal organizations through very royal and clerical electric power structures to industrial set ups and modern-day post-industrial set ups. The typical hierarchical arrangement to get lines of authorities, marketing communications, rights and duties of an organization. Organizational structure determines how the tasks, power and responsibilities will be assigned, manipulated, and matched, and how details flows between the different amounts of management. A structure depend upon which organization’s aims and technique.

In a centralized structure, the most notable layer of management has most of the making decisions power and has tight control over departments and divisions.

In a decentralized structure, the choice making electrical power is allocated and the departments and sections may have different degrees of freedom. A company including Proctor & Gamble that sells multiple products may well organize their very own structure to ensure that groups are divided relating to each product and based on geographical area as well.

The value of Corporation Structure

Several writers include pointed out the value of an company structure and the relationship among it and an organization’s size, technique, technology, environment and traditions.

Mintzberg (1989) features written widely and significantly on the importance of organizational structure. Miller (1989) has discovered the importance of configurations of strategy and structure. Melts away and Stalker (1961) concluded that if an firm is to attain maximum functionality then their structure need to fit with or perhaps match the pace of difference in its environments. Handy (1990, 1993) features discussed the importance of traditions in relation to organizational design and structure as well as the need for new organizational forms.

Pascale, Milleman and Gioja (2000, g. 197) consider ‘design may be the invisible hand that gives organizations to our lives and existence to organizations. ‘ Further more, organizational framework and style are carefully entwined (Mabey, Salaman & Storey, 2001) with many areas of human resource management. Thus structure contains a key function in the good human aspect of an organization.

Too often the importance of Corporation structure is usually overlooked and Miller (1989) points to a gap in the books whereby this content of company or business strategies is not widely regarded in relation to composition. One of the most crucial aspects of a manager’s function is the style of Organizational constructions, yet this is a neglected responsibility (Senge, 1994). McMaster (1996) argues that Organizational style is not really well recognized and traditional management education does not include the development of any understanding of the principles of corporate design. The impact of the floury of corporate restructures that took place in the 1980s and 1990s, discussed later on in this paper, supports this kind of view. I would suggest that this not enough genuine understanding is a significant shortcoming.

Definition of Structure

Mullins (1993) and Mabey, Salaman & Storey (2001) describe the structure of an Organization as the design of associations between roles in an Firm and its different parts. They begin to see the purpose of this kind of structure since serving to allocate operate and obligations in order to direct activities and achieve the Organization’s goals. Structure allows managers to plan, direct, organize and control the actions of the corporation (Mullins, 1993, Mabey, Salaman & Storey, 2001). This is a traditional watch of Organizational design that uses principles derived from time-honored and clinical Management.

A non traditional approach is taken by Pascale, Milleman and Gioja (2000, p. 197). They consider the role of architects and the concepts they use to create buildings that provide ‘(1) structural integrity (sound buildings), (2) functionality (space appropriate for its intended use), and (3) aesthetic appeal. ‘ Employing these guidelines an recorded is able to work together with the client in order to create a composition that is an integral and facilitating aspect of living of the people that move in and around that. Thus system approaches will offer us a fantastic model with which to consider Organization design and style principles.

We would define a great Organization’s structure as the architecture the two visible and invisible which connects and weaves together all areas of an Company activities so that it functions like a complete active entity. One easy approach should be to consider how an Company structure is usually described the moment represented diagrammatically, which many is often demonstrated in the Business chart. This provides useful insights into the actual design guidelines. It will not show informal structures, but this may not be the focus with this paper, other than where they are really an integral part of the look, as in for instance , design Concepts derived from complexness.

The 20th Century “Traditional way

Henri Fayol can be credited by many people as being the creator of modern managing theory and practice. Composing at the beginning of the 20th century he recommended an Organization framework that was centralized, functionally specialized and hierarchical, in which everything experienced its particular place. Management was seen as being everything regarding planning, managing, forecasting, co-coordinating and handling.

Others developed on Fayol’s work, which in turn Morgan (1986) claims supplied the foundation of management theory in the initial half of the previous century, and which is still very much in use up to the present day. As well in the early on 20th 100 years Frederick The singer drawing on his understanding of traditional science and scientific method devised a theory of management ” scientific supervision. He advocated the use of ‘scientific’ methods of dimension and examination and pennyless all tasks down into little repetitive elements. This was considered the most effective way of operating a production process and his methods achieved their particular apogee inside the Ford engine car creation line process.

Thus the standard structure of many large Organizations in the 20th century started on thready, segmented, hierarchical design guidelines as typified by Determine 1 . The bigger the Organization the bigger the structure and the even more sub sections. It was a technique for Organization design that reflected the classical scientific worldview as would the early managing theorists

Number 1 . Classic Organization Graph / Composition

During the the middle of 20th century there was a trend for Organizations to develop huge business structures, often composed of various varied and different businesses, for example , the Hanson Trust, Trafalgar House, Unilever, and GKN in the UK and General Electric in the USA (Mabey, Salaman & Storey, 2001). In the community sector also, huge bureaucracies were made up of the nationalization of the open public utilities following World War II and the creation with the NHS in 1948. The management of such huge Businesses required a complex multilayered composition with many subwoofer divisions.

‘Tall structures were created with as many as 20 plus levels involving the chief Executive as well as the shopfloor practical, effectual. Managerial control over employees at all the Multiple amounts was depending on a mixture of immediate command and budgetary Responsibility. Hierarchy, command and control were the governing principles of Employee management. ‘

But by the last decades of the twentieth century, nevertheless , the trend for larger and bigger structures was over. Almost every Organization experimented with some kind of structural change process (Ashkenas et al, 1995). Large conglomerates were broken up and large bureaucracies slimmed down as Organizations sought to get more effective and versatile (Mabey, Salaman & Storey, 2001). Companies merged and demerged, made acquisitions or perhaps sold all of them off and experimented with a variety of strategies designed to make them more effective and responsive to a rapidly changing world. During this time period Organizations had been awash with notions of delayering, correct / downsizing and business process re-engineering and for a time returns to shareholders were at record levels (Willis, 2001).

Downsizing was used by many companies as a method of altering their constructions in order to be trimmer and more powerful. Large Companies with many bureaucratic aspects like Kodak, APPLE and Standard Motors remodeled in this way (Mabey, Salaman & Storey, 2001). This as well as the often accompanying trend for outsourcing led to a wave of new concerns particularly with employee insecurity and lack of expert know-how. Coulson- Thomas and Coe (1991) report that in numerous of these thinner Organizations there were issues

of work excess, increased work stress, deficiency of vision, poor decision making, business in preventing and so on.

Further, this approach turned out to be an unsatisfactory one, not simply because of the immediate social costs and the loss of experience and valuable expertise, but since many Businesses failed to monetize on the reorganization, rearrangement, reshuffling and implement new supportive systems (Mabey, Salaman & Storey, 2001). They changed the composition of the Business but not in such a way as to improve its total long term performance. This obvious lack of insight concerning the importance of the relationship among structure and internal and external devices and individual behaviours shows a restricted comprehension of the principles of Organization style.

Business process re-engineering was another strategy which a large number of adopted during this time period as an ideal way of bettering efficiency and removing bureaucratic structures. But , Mumford and Hendricks (1996) point out, corporations became enthusiastic about cost slicing and associated staffing reductions and did not consider how best to reorganize and restructure. Also some key executives utilized the process to rid themselves of cumbersome bureaucratic restaurants of control but did not cede control Mabey, Salaman & Storey (2001, p. 158) identify this period among ‘apparent chaos’ as Companies also used approaches depending on networking, freelancing and ideas of virtual forms of Corporation. However , they offer an synthetic framework that we shall value to describe the different types of structure that still redominate. It offers 4 main types of structure: bureaucracy, divisionalized structures, proper business units and ‘de-structured’ forms.

Organizational ” 21st Century

By the end of the twentieth century some less traditional forms of business structure beganto emerge because evidenced by ‘de-structured’ forms described by Mabey, Salaman & Storey (2001). Handy (1990) observes that the outdated mechanistic systems are almost everywhere breaking down. Mabey, Salaman & Storey (2001) talk of the emergence of any new paradigm for company form which will seeks to exchange the rigidity and troublesome nature of the traditional contact form. Ashkenas ou al (1995) report on a change in design principles that amounts into a major move.


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