Discuss about the Organizational Learning and Development for Cengage Learning.
Organizational structure refers to the structure which an organization adopts to achieve the long term goals by arranging the people and the jobs so that the goals can be achieved. It helps in defining the character of an organization regarding its behavior under different circumstances. It is necessary for the organization to define the structure in a significant manner too design the various position and departments in an organizational structure. It defines the relationship in between various jobs and department and creates a hierarchy for the efficient utilization of the resources (Kortmann, 2012).
Complexity: organizational structure depends upon the various complex issues. If the structure of an organization is complex it is difficult for an organization to achieve the targets. The goals of an organization can only be achieved if there are lesser complexities. Under such a circumstance it is the duty of the management to form simpler tools which necessarily helps in achieving the goals. Complexities deal with the formation of the organizational structure for defining authority.
Formalization: the degree of differentiation in managing the authority can only be created if the organizational structure is formal. The organization where the structure is informal the employees find difficulty in achieving the targets. The organizations where the management has formalized the authority the employees are more productive whereas those organizations which adopt an informal structure are less productive (Robbins, 2009).
Centralization: centralization and decentralization are essential for managing an organizational structure. The organization which has centralized structure is least liberal in their approach. Whereas the organizations which have are decentralized in nature are liberal in nature. The degree of the centralization defines the structure in an organization. It relates with the decision making authority and its functions which helps in concentrating the resources under the given situation (Sanchez and Heene, 2005).
Ans to Q-2. Organizational structure and design are two inter-related terms in the organization. The structure of an organization represents the power and responsibilities of a company. The structure of an organizational flow in a hierarchy which flows from top level to lower level. An organizational design is a strategy where the organization unifies different department of the organization. It deals in planning the organizational activities. Developing the organizational structure is a difficult task as it involves management of the large business. The most difficult issue in an organization is to create a formal link for the supervisory purpose. Both the organizational structure is not an easy task. Both the structure and design are different in the manner of creation (Middleton, 2002). If a company wants to form an organizational structure it helps in designing the work flow for operating various business operations. The organizational design depends upon the structure of the products and the various processes. Changes may affect the organization but it does not affect the design of the organization (Phillips and Gully, 2011).
Organizational structure helps in determining the organizational behavior and persuades the culture of the organization whereas the design of the organization helps in determining the flexibility in the organization. Their relationship depends upon the degree of changes which are essential to incorporate in the design of the organization (Luthans, 2005).
The Asian companies have a very rigid structure and are very formal in approach whereas the western countries are flexible in nature. They follow an informal structure in an organization. For example: the organizational structure and design of Starbucks varies from the other coffee brands due to its vast span. They have a decentralized organizational structure which has a direct link with the culture of the company. Starbucks way of managing operations is similar in every country which focuses on carrying forward the mission of the organization (Robbins and judge, 2009).
Ans to Q-3. The organizational structure of a company helps in deciding the relationship between the people and the organization. The organizational chart include the management, managers, sub-workers, etc who are working in relationship with each other. When an organization grows the structure develops into different parts.
There are three types of an organizational structure in an organization:
Hierarchical
Matrix
Horizontal
Nestle follows a decentralized organizational structure which is organized through matrix structure. It allows the employees at the subordinate level to enjoy a high- level of independence. The majority of the decisions are made at headquarter but daily operations are carried by the subordinate branches. The responsibility of the organization is left with the local units at the different places. Nestle has developed from a small organization to a multinational company. It has adjusted itself in the diversified environment to achieve the long term objectives. Nestle is growing continuously in size as well as in structure which has helped in achieving growth.
The organizational structure of Nestle is divided in 3 types which are:
Top level management: the top-level management is responsible to frame the policies for an organization. It is the final authority who takes the decision for an organization. They lay down the budget for the organization and divide the power among the middle level of management.
The role of the middle-level management is to implement the policies which are lay down by the top-level manager. There duty is to allocate the task to the lower management. They have to keep a check on their working to achieve the better results (Staw, 2006).
There duty in an organization is to follow the directions which are given by the managers. Lower level manager has a duty to maintain good relations with organization.
Ans to Q-4. Interventions in an organization are managed through the acumen skills of the HR manager. The organizations are facing multiple issues due to the external environment. HR manager plays a significant role by managing the employees and the differences which are not in the interest of the organization. It is a difficult task for the manger ti manages the organization with the limited resources. A medium-sized organization has limited resources and employees. The major difficulty is in managing the organization under the given resources. The HR intervention necessary for an organization are as follows:
It is essential for a medium-sized organization to limit the size of the employees as per the requirement. Employing the people as per the organizational structure is essential.
Secondly there is a necessity in an organization to establish the responsibility on each employee to achieve the sustainable result under adverse situations. A manager has to play multiple roles in the organization while dealing with the employees which are already facing difficulties. Thirdly a manager has a duty to craft policies as per the current requirements.
The organization faces various challenges due to the competitive environment. Under the difficult situation a good organizational structure helps in retrieving the maximum result. A medium sized organization face challenges from the other competitor. In such a situation the manager has to restructure the organization looking onto the current situation. HRM practices varies from organization to organization under such situation a manger in an advertising company has to take progressive decisions keeping in mind the welfare of the employees. In atoxic organization the manager has to eliminate the flaws in an effective manner (Armstrong, 2011).
Ans to Q-5. Organization underwent restructuring when the internal departments are not yielding enough profit. Financial and legal advisers are hired to resolve the issue in the organization. A restructure may refer to company selling out a part, merging, changing its overall structure to increase the productivity. The company underwent restructuring depending on the MOA with the various shareholders and creditors (Pomerleano and Shaw, 2005).
Example: restructuring is an essential to procure the maximum productivity. In the case of General Motors it decided to shut down 21 Plants due to constant loses in the year 1991. It laid-off 74,000 employees to counter the losses. GM is the motor giant and it has a successful history. The organization has adopted downsizing as the restructuring method to achieve the objectives. Downsizing is a common restructuring policy which is adopted as a tool to manage the internal organization.GM has undergone restructuring in the year 2009 which is due to bankruptcy. It is a tool used by the management to lever the asset of the organization (Weston, 2003).
The recent successful merger is an example of the corporate restructuring where Dell Corporation merged EMC into the organization to compete with the global competitors like HP and Lenovo the main aim behind the merger is to deal with the contingencies the companies are facing and to overcome against them together. Dell has the best supply chain services whereas EMC has a cutting edge over the technology. It is called as the largest restructuring in the year 2016. It strengthens the inner capacity of the organization and helps in achieving the objectives. There is no successful formula for restructuring the company. But at the time of constant losses it is necessary for an organization to restructure its internal strength to increase the overall productivity. The success of an organization depends on, how fast it adopts the changes in the environment (King, 2016).
References
Armstrong, M. (2011). Armstrong’s Handbook of Strategic Human Resource Management. Kogan Page Publishers
King, R. (2016). Dell Closes $60 Billion Merger with EMC. (Online).Available at: https://www.wsj.com/articles/dell-closes-60-billion-merger-with-emc-1473252540 (Accessed on: 10/10/16)
Kortmann, S. (2012). The relationship between organizational structure and organizational ambidexterity. Wiesbaden: Springer Gabler,
Luthans, F. (2005). Organizational behavior. McGraw-Hill
Middleton, J. (2002) organizational behavior. Oxford, U.K.: Capstone Pub.
Phillips,J and Gully,S.(2011). Organizational Behavior: Tools for Success. Cengage Learning
Pomerleano, M. and Shaw, W. (2005). Corporate Restructuring: Lessons from Experience. World Bank Publications
Robbins,S. And judge, T. (2009).organizational behavior. Frenchs forest, n.s.w.: Pearson education Australia
Robbins, S. (2009). Organizational Behavior, 13/E. Pearson Education
Sanchez, R. And Heene, A. (2005). A focused issue on managing knowledge assets and organizational learning. Amsterdam: Elsevier Jai
Staw, B. (2006). Research in Organizational Behavior: An Annual Series of Analytical Essays and Critical Reviews. Elsevier
Weston, (2003). Takeovers, Restructuring, and Corporate Governance. Pearson Education
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