Theoretical Aspects Of Organizations And Their Structures

Basic Components of an Organization

The following basic components of an organization are discussed and mentioned below:

i. Common Purpose: A company without a clear mission or purpose soon begins to float and become disorganized. It unites members or employees and provides everyone a comprehending of a direction of an organization. Confirming that a common purpose is efficiently communicated across organizations is a dominant task for managers (Christodoulou and Cullinane 2019).

ii. Coordinated Effort:It involves working or functioning together in such a way that it increases the resources. The primary purpose is to accomplish through a coordinated effort an attempt of all the groups and individuals within an organization. Thus, the broader group’s varied personalities and skill sets should be leveraged in a manner that it adds value.

iii. Division of Labour:It is also known as a work specification for a better efficiency. It includes delegating particular parts of a wider task to different individual within an organization on the basis on the particular skills and abilities. Utilizing this element, an organization may parcel out a difficult work effort for the professionals to perform.

iv. Hierarchy of Authority:It is essentially a chain of command that is “a control mechanism” in order to ensure the right people perform a right thing at a right time. Hence, there are a comprehensive range of organizational structures and authority allows organizations to select strategies and set directions, which may ultimately allow a common purpose.

Functional organizational structure refers to a structure of business that band employees by skill, related roles, or speciality. It is mainly made on the basis of hierarchy levels that contain different sections, under the management of designated leaders. The following traits of a functional organizational structure are: 

This type of structure arranges the company into various sections on the basis of an expertise areas.

It offers a stable or secure environment where employee might clearly understand the job’s scope and what is predicted to them.

Large firms frequently support functional structures as every department may hum along individualistically, which leads to better effectiveness. A disagreement in one department would not essentially lead to a blockage throughout the company.

Matrix organizational refers to a structure where teams account to many leaders. Thus, the matrix project which keeps an open communication between the teams and assist firms in creating more innovative services and products (Ashtiani, Bhuiyan and Zanjani 2017). The following traits of the matrix organizational structure are discussed and mentioned below:

Functional and Matrix Organizational Structure

Matrix organization concentrates attention on particular projects. The project’s charge is provided to the manager of a project who is given an authority to complete the task as per the time, quality, cost, and other situations conveyed to the manager by a top management.

Both the functional managers and project have different roles. Thus, the project manager applies a general management perspective with respect to the project. Every functional manager is accountable for handling the function’s integrity.

PESTLE Analysis refers to a strategic management framework which is utilized in evaluating the businesses external environment by breaking down a risks and chance into political, economic, technological, environmental, legal, and social factors. This may be considered as an efficient framework in order to utilize in the “Corporate Strategy Planning” & for recognizing the cons and prons of the business strategy. It is also an expansion of a strategic framework of PEST, one that contains additional valuation of the legal and environmental factors that may influence the business (Perera 2017). In addition, such type of framework is mainly utilized to measure an external component that may influence the company’s profitability. Normally, it is more efficient with larger organizations or groups that are more probable to experience the macro events impacts. Lastly, the points which is being originated from this analysis may be combined into another strategic framework like Porter’s Five Forces and SWOT Analysis, where applicable. 

The primary principles of LEAN paradigm are discussed and mentioned below:

i. Value:To better comprehend the primary principle of clarifying customer value, it is extremely important to comprehend what value is (Veza, Mladineo and Gjeldum 2016). Hence, value refers to what the client is wishing to pay. It is dominant to determine the latent and actual requirements of the customer. Most of the times customers might not know why they cannot articulate or what they want.

ii. Value Stream:The second principle of lean is mapping and identifying the value stream. Regarding this step, the main objective is to utilized the value of a customer as a recommendation point & recognize all the actions that add to these values. Hence, activities that does not add any value is mainly considered to be waste.

iii. Flow:After replacing the waste from the above principle, then the following action would be to assure that the flow runs smoothly without any delays and interruptions. Some strategies assuring that the value-adding activities run smoothly which contain reconfiguring the steps of a production, generating cross-functional departments, training employees in order to be adaptive and multi-skilled.

PESTLE Analysis

iv. Pull:In any production method, inventory is the biggest waste. The primary objective is to restrict inventory and WIP (Work in Progress) items while assuring that the requisite information and materials exists for a smooth run of work. This system allows for Just-in-time manufacturing and delivery where products are generated from the customers requirements.

v. Perfection:Wastes are prohibited through the success of the first 4 stages. Hence, the last step is the most significant among them all. Every employee must struggle towards perfection while providing products on the basis of customer requirements.

Rakuten wanted to change or alter the organization’s language. Instead of the margin of his firm speaking their inhabitant Japanese, he wished his 7,100 employees of Tokyo to change to leading business in English. As per the research, it has been found that a large % of employees, particularly native Japanese speaker, felt nervous, frustrated, afraid, & even burdened by the initiative (Alanzi 2018). Thus, this transition was to backing the efforts of the company turns out to be number one in the internet services around all over the world (Kucharska and Wildowicz-Giegiel 2017). Personally, the Rakuten employees were not feeling the transition as something favourable for them. As a leader, one does not require the transition to be good, for the employees each phase of the way. 

The following relevant reasons for representing or introducing changes are discussed and mentioned below: 

A more attractive and fulfilling workplace

Lower project costs

Higher profit margins

More efficient training solutions

The capability to adapt to transition

More modern strategies and change management practices

More progressive enterprise change management

A more desirable and attractive workplace culture

The following dimensions of an organizational culture intended by Hofstede are discussed and mentioned below: 

i. Power Distance:It refers to a dissimilarity in a work culture according to the power which is assigned to the employees. Thus, there are some companies which believe in employing team managers or team members who are liable for their particular teams & have the dare of extracting best members.

ii. Masculinity Versus Feminity:This is the differences effect in the female and male values on the organization’s culture. Organization where the male workers dominate their female foil would obey different policies in comparison to the organizations where women’s have a main say in the process of decision-making of the organization.

iii. Individualism:There are organizations which strongly dependent on the team work. Over here, the individuals come together with interest and function in an agreement as a team. Thus, these organizations think that output is more when people exchange their concepts, explain things between themselves in order to come up with an exclusive and innovative ideas.

Principles of LEAN Paradigm

iv. Uncertainty Avoidance Index:It is a culture of organization where employees understand how to reply to unforeseen and unusual circumstances. Thus, it deals with the employee’s tolerance level in both the uncomfortable and comfortable situations (Ferrell and Fraedrich 2021).

v. Long-Term Orientation: Most of the organizations concentrate on the long-term relationships or connections with the employees. Hence, in such type of organizations individual have a stable approach & struggle hard to come up with the management’s expectations.

In the 21st century, the main competencies for HR managers are mentioned and presented below: 

Provide and deliver a transformational leadership

Resolve and collaborate strategic challenges in the firm

Encourage or inspire an involvement of the real employee

Facilitate and empower learning and change & decision-making

Design performance and process systems

Maintain or handle a global business viewpoint

Business Ethics refers to a study of how an organization must act in the case of controversial situations and ethical dilemmas. This may contain numerous different situations, containing how a business is ruled, role of the business in the social issues, and how stocks are operated (Turlais and Dubkevics 2017). The following fundamentals of the business ethics are discussed and mentioned below:

i. Trustworthiness:Achieving trustworthiness generally includes being honest and transparent in all communications and actions. Being trustworthy might have a positive influence both externally and internally. Customers appreciate openness because it delivers them with vision into how an organization runs and abstracts the work.

ii. Respect:Presenting respect for customers and employees includes next through on all the promises – and delivering sincere apologies & suitable compensation if whatever falls through. However, demonstrating an absence of respect would discourage customers from connecting with a business & lower the businesses reputation (Griffin 2021). It would also do considerable damage to an employee confidence & increase turnover.

iii. Fairness: Treating employees and customers with a gist of fairness & justice is an essential type of ethics. Thus, manipulative behaviours are not just unethical, but on the other hand, they are also unbeneficial & the businesses top priority must be to be beneficial to its employees and customers.

iv. Caring: At the end, businesses are comprised of human beings. Hence, there are people who consume services or goods from the business & then there are people who work to generate those services or products. Being open to the struggle & coming up with the solutions would show empathy that is a beneficial tool to use for any business(Weiss 2021).

Introduction of Changes

The following primary components anchors of Schein’s model are discussed and mentioned below:

i. Functional or Technical Competence:These individuals possess being good at particular tasks and would work hard to develop or emerge the particular skills essential to complete them.

ii. General Managerial Competence:These individuals prosper off performing in the responsibilities position, handling high-level issues, interacting with others, and building relationships, they need strong emotional intelligence abilities to succeed.

iii. Autonomy:These individuals require to be absent to their individual devices, and can act without requiring too much direction, confirmation, or interference, often avoiding procedures and standards to don things.

iv. Security or Stability:They pursue predictable and stable positions & activities, which they can plan approaches of their life, taking few risks or possibilities.

v. Entrepreneurial Capability: In the business, these are creatives, enjoy brainstorming & inventing new things, & also frequently seek to operate their individual business; hence they are dissimilar from others who pursue autonomy because they would share the load and enjoy individuals, containing themselves, taking possession for their work, they frequently get bored & seek monetary gains.

vi. Service:Driven nearly completely by the requirement to be continuously roused by new tasks and challenges which test their capabilities to resolve problems; they would often pursue to move jobs or no longer owns the challenges they require to progress.

vii. Life Style:These individuals create everything, containing their role, around their living pattern as a whole: not balancing the life and work; as participating it, they might also take long leaves in order to participate in the recreational activities.

In addition, for this century, life style, technical competence, and entrepreneurial capability are the three basic elements which are suitable and appropriate. 

Organizational control is significant to know how efficiently the organization is functioning, recognizing areas of concern, & then taking a suitable action (Kucharska and Bedford 2019). The following most relevant types of an organizational control are discussed and mentioned below:

Output Control:It focuses on measurable outcomes in the organization. With respect to this control, executives should decide the performance acceptance level, interact the general prospects to the employees, follow whether the value of a performance cover the expectations, & then make any required changes.

Behavioral Control:It generally concentrates on operating the actions unlike an outcome in the case of this control (Szymura-Tyc and Kucia 2016). Particularly, specific processes and rules are utilized to dictate or structure behaviour. For instance, companies having a regulation that needs bills to be authorized by two persons in order to protect employee theft.

Clan Control:It is a type of non-standardized control. It mainly relies on shared traditions, values, norms, and expectations. It is common in various industries where originality is crucial, like high-tech businesses. 

References 

Alanzi, S., 2018. PESTLE Analysis. Project Management. 

Ashtiani, N.N., Bhuiyan, N. and Zanjani, M.K., 2017. Lean Leadership Practices-A Literature Review. Ind. Eng. Manag, 6, p.226. 

Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges from the implementation of a port energy management system: A SWOT/PESTLE analysis. Sustainability, 11(21), p.6046. 

Ferrell, O.C. and Fraedrich, J., 2021. Business ethics: Ethical decision making and cases. Cengage learning. 

Griffin, R., 2021. Fundamentals of management. Cengage Learning. 

Kucharska, W. and Bedford, D.A., 2019. Knowledge sharing and organizational culture dimensions: does job satisfaction matter?. Electronic Journal of Knowledge Management, 17(1), pp.1-18. 

Kucharska, W. and Wildowicz-Giegiel, A., 2017, August. Company culture, knowledge sharing and organizational performance. The employee’s perspective. In Kucharska, W. & Wildowicz-Giegiel, A.(2017). Company Culture, Knowledge Sharing and Organizational Performance: The Employee’s Perspective. In Proceedings of the 18th European Conference on Knowledge Management (Vol. 1, pp. 524-531). 

Perera, R., 2017. The PESTLE analysis. Nerdynaut. 

Szymura-Tyc, M. and Kucia, M., 2016. Organizational culture and firms’ internationalization, innovativeness and networking behaviour: Hofstede approach. Entrepreneurial business and economics review, 4(4), p.67. 

Turlais, V. and Dubkevics, L., 2017, May. Comparative analysis of organizational culture models in Management Science. In Turiba University. International Scientific Conference (p. 204). Turiba University. 

Veza, I., Mladineo, M. and Gjeldum, N., 2016. Selection of the basic lean tools for development of croatian model of innovative smart enterprise. Tehni?ki vjesnik, 23(5), pp.1317-1324. 

Weiss, J.W., 2021. Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.