Essay on BUSI690 Rothaermel Ex 3

The other form involves grouping the wire harnesses by product/geography known as the multidivisional form (M-form). The M-form is known for managing, organizing, growth and diversity of large/growing organizations. “To succeed, the M-form required the existence of a strong and professional management hierarchy, and the new decentralized organizations required strong management both at the headquarters and in the divisions” (Witzel, 2005). Decentralizing improves strategic planning by freeing up senior management time. This grouping can cause coordination problems amongst subunits, performance plans are difficult to construct, and it is less effective with local product information. Maintaining the M-form requires a strong strategic plan and management.

Organisational structure implicates a configuration of tasks and activities and includes the ‘framework’ and informal structure dimension (Skivington and Daft, 1991). An organization structure and strategy drives each other (Enrique, Eva M and José F, 2012). Hence, an organization structure is

Organisation structure can vary along a number of dimensions in the form of bureaucratic, functional, matrix or network structure. The choice of structure is influenced by an organisation’s strategy, its size and the technology used. As an organisation changes its strategy to respond to PEST factors in its external environment, so should its structure change to maintain the strategy-structure relationship (Senior, 2002). To allow organisational survival, organisations tend to favour flatter and more flexible ways of working compared to hierarchical organisational forms and bureaucratic control systems which can be a hindrance to change (Collier & Esteban, 2000).

There are many different types of structures any organisation can operate with depending on what their purpose is but, for this study, the following types of organisational structures will be discussed: the flat structure, the tall

The structural perspective aims to defeat lack of activity periods, doubts and dissatisfaction of employees about their role in works and companies in order to make organizations achieve short and long-run goals and results, increases their efficiency and maximize performance through specialization and division of labor and suitable forms of coordination, control and working best ways. Overall, the structure frame is the key element for profitable and sustainable organizations. Organizations works best when rationality prevails and they are ready to anticipate and deal with environment issues and other uncertainty problems. As mentioned, the main goal is create coordinate, balance and efficiency organizations which can thrive for many profitable years. Therefore, structure will work as a “blueprint” (Bolman and Deal, 2008) inside organizations. First of all, it is not possible to take one structure as ideal, whereas the structures are different from organization to organization, because each one has their own identity and strategy. Today, all of them face pressures of globalization, competition and other environment pressures outside and inside the organizations, therefore, organizations cross times where they have to “rethink” and reconsider new approach, perhaps through restructuring. These restructuring pressures, conducted by elements of the company environment should be considered as a main source of reaction to fight the

Corporate structure is the way in which the parts of a corporation are put together. Corporations usually have several strategic business units (SBUs). These SBUs are also called strategy centers, strategic planning units, or independent business units (Jain, 1990, p.17). Kotler (1997, p.71) states that an SBU is a single business or collection of related businesses that can be planned separately from the rest of the company. An SBU can be a company division, a product line within a division, or sometimes a single product or brand (Kotler et al., 1998, p.35).

IT faces several challenges as they try to align business goals with IT. In larger firms with several business units, IT may be highly aligned with the goals of each individual business unit, yet not with the overall company goals. Creating many individual solutions for separate business units in isolation from the

The best strategic plan will never be fully achieved without alignment. This is because organizational alignment is one of the key determinants of successful strategy implementation. Each member of the company must know their job and that they can rely on their leaders, training, equipment, and the technique, skills, and commitment of their coworkers. When cohesion and alignment is off, the company goes off course, wastes time, energy, and the resources that were invested (Rick, 2014).

According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the

This study examines factors that determine organization structures. The objective was to examine the extant empirical literature in order to identify the salient factors that influence organization structures. Several studies have been cited revealing that structural contingency framework has for a long while provided the determinants of organization structures. The assumption has always been that structural-contingency framework is deterministic on organization structures. Many of such studies are bivariate, testing the relationships between size, strategy, technology, environment and structure. But the structural contingency framework fails to explain the process by which decisions on structures are reached although it names the factors that have to be considered. This paper concludes that the structural contingency factors are not deterministic in the formation of organization structure. These factors are necessary but not sufficient condition for restructuring organizations. The process of structuring organizations is a political process through which those who have the power to direct firms play significant roles. In any case the factors do not choose but people

An organizational structure is the outline of a company’s framework and guidelines for managing business operations. An organization 's structure and its degree of centralization or decentralization depend on a number of factors, including the size of the organization and its geographic dispersion. In a very large and diversified organization, it is unlikely that a handful of people will possess all the resources to achieve all goals and objectives of the enterprise. As a result, it becomes impractical to concentrate power and decision-making authority at the top. Similarly in a geographically-dispersed organization, a centralized approach will not be the most efficient, as the people with the most authority will be unable to directly supervise operations on a day-to-day basis.

Sharing competencies among units within an SBU is an important characteristic of the SBU form of the multi-divisional structure. The drawback to the SBU structure is that multi-faceted businesses often have difficulties in communicating this complex business model to stockholders.

The influence of factors on organizational structure and their impact on the organization has been in focus by researchers since many years. This paper reviews the literature and analyses the factors that influence the structure and design of organizations. Organizational structures are mainly grouped as functional and divisional structures on the basis of functions or jobs. The most important and powerful tool for enhancing performance in an organization is the organizational design although there is no perfect or unique design. Organizational change occurs when a company makes a shift from its present state to a desired state, which is necessary in today’s competitive environment.

Strategy must be aligned with the goals and long term business objectives of an organization

To be strategically aligned with the market and an organization needs to be customer driven, not organizationally driven. All functions of an organization need to be aligned internally and with each other. Because “structure plays a powerful role in creating a market driven organization” (Day 1999, p.208) it has become imperative for it to be a major focus of the business model. The organization structure effects relational outcomes (customer satisfaction and loyalty) and brand equity (Lee, Kozlenkova, & Palmatier, 2015, p. 95). Forbes.com writer Joseph George said it best, “perfect alignment on a sub-optimal strategy will likely be more successful than sub-optimal alignment on a perfect strategy. Alignment is the key ingredient to success, because without it, the most perfect strategy in the world will never come to fruition (2014). Wooden (2005) describes one of the building blocks of success and leadership is cooperation, being interested in finding the best way, not having your own way (Wooden & Jamison, 2005, p. 29).