Sunday, November 20, 2016

Contemporary Organizations

Organization Design is about aligning an organization’s mission and vision with its structure, it’s about considering relationship between workflow, responsibly, tasks and authority and assuring they support business objectives. The organization’s design affects employee’s productivity, communication between each other, and efficiency. For example, having great people, well studied mission and great leadership are not enough and don’t guarantee well performance, as it depends as well on the an organization’s design, if the organization is poorly designed, it will not perform well. Promotions, employee punishment, business process and information sharing directly affect how healthy the organization is, each of those along with many other aspects are important for organization’s success.

Many might argue that most of today’s organizations are bureaucratic organizations; responsibility and authority are organized in hierarchies, this is true as executive managers are not ready yet to relinquish control. This makes me wonder, were those organizations really designed? Or they just evolved?

The organization design of my previous employer was based on bureaucracy and decision-making was centralized. The chain of command was very strict, I remember as a system engineers I used to visit customers on daily basis and hear complains about the level of our service or system bugs, although I informed my direct manager about those complains, he sometimes used to ignore them. As a reaction I used to send an email to his manager reporting those issues as they affect the image of the company in front of customers, both managers used to dislike such action from my side and asked me to respect the chain of command. As well employees were not involved in the decision making process and the authority was centralized in the hands of executive management who were basically located in the head office. This approach resulted in loosing business opportunities. In addition to that rules and procedures were clear and very hard to change, although each of the employees knew what was expected from them, however the lack of flexibility made employees focus on their own and team goals rather than the organization’s goals.

As this company is an IT support company with offices around the region, I would recommend to follow a contingency model, were management should consider revising the organization design to accommodate with contextual factors, like competitors, customers, and their employees. Authority should be decentralized and employees engaged in the decision making process, this will increase flexibility, innovation and creativity. As an IT company, virtual teams should exist to utilize their team in different branches and share knowledge between the team. As well I would recommend them to become more collaborative and build a page on Facebook were customers can post their queries, this will help in resolving problems faster and give the customer a level of comfort.

Executive managers should always forecast and plan for the best design that suits their organization, this design should be reassessed to ensure its compliance with organization’s missions and goals, single design might not be the best for all times.

References:


Buchanan, David A., & Huczynski, Andrzeg A. (2010). Organizational Behaviour. Prentice Hall.

Marianne Tracy, (2004) "Contemporary issues in organizations: The case for the truth – using Manfred F.R. Kets de Vries’ work as a lens", Development and Learning in Organizations, Vol. 18 Iss: 6, pp.4 – 6, DOI: 10.1108/14777280410564158, Emerald, [Online]. (Accessed 11 June 2011)

McNamara, C., (n.d.), ‘Historical and Contemporary Theories of Management‘, [Online], Available form:
(Accessed 11 June 2011)


MindTools, (n.d.), ‘Organization Design Aligning Organizational Structure with Business Goals’, [Online], Available from: http://www.mindtools.com/pages/article/newPPM_95.htm

(Accessed 11 June 2011)

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