New designs focus on adaptability.
Share on Facebook When organizing a business, you have to balance the need for formal structures with the requirement that the business might have to quickly respond to changes in the marketplace.
A simple business environment lends itself to a traditional hierarchical organizational structure. Your choice depends on what the company produces and the complexity of the markets in which it operates.
Level of Control The traditional organizational structure is a pyramid with a chief executive at the top.
The CEO delegates some of his authority to immediate subordinates who, in turn, have several layers of managers reporting to them. The structure is simple, and the lines of authority are clear. This structure works well when challenges at the working level are predictable, but it is inflexible when a working-level employee encounters unexpected situations.
A contemporary structure empowers working-level employees, reduces centralized control and holds all organizational levels responsible for their own decisions.
Flexibility The contemporary organization achieves the empowerment of working-level employees by introducing horizontal elements into the organizational structure. Instead of having a single manager as in a formal hierarchy, employees in contemporary organizational structures report to one manager for disciplinary issues and other managers for work and product-related matters.
This structure encourages the formation of teams that make their own decisions. By moving some of the decision-making down to the working level, the contemporary organizational structure achieves a greater flexibility in meeting external challenges.
Efficiency While the contemporary structure is more flexible, it is less efficient. Making decisions lower on the organizational structure means the company has to disseminate information required for the decisions and the impacts of the decisions themselves throughout the organization. Additional personnel have to make sure the working level employees have the required data and know about the decisions being made by other teams.
The price of the additional flexibility is the cost of the required coordination. Responsiveness Flexibility is only useful if it results in effective responses.
Companies can achieve some flexibility within the traditional organizational structure, but the managers and executives make their decisions at a distance from where the work is being carried out. A contemporary structure that has shifted decisions to the working level ensures that the employees most familiar with the work make the corresponding decisions.
The decisions respond to the requirements of the marketplace and let the company quickly adjust to changing conditions.Modern organization design draws on ideas from many fields to make communication more dynamic and blend individual and organizational solutions together into a .
Organizational Structure One Smooth Stone is a communication and an event agency that their helps clients attain their strategic goals and objectives.
At the company, all employees work as a team to achieve the client's’ needs, which often change with regards to competition, time among other factors.
Organization Design Essay; Organization Design Essay.
Organizational Structure is the formal arrangement of jobs within an organization. Organization chart: Organization structure shown visually in the form of a chart. Organizational Design: A process that involves decisions about six key elements: Work specialization, Departmentalization.
Published: Mon, 5 Dec It is one of the contemporary designs which is like that the organizations have only team base work assignments and follow it as to . Jun 30, · Organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals.
Contemporary Forms of Organizational Structures Learning Objectives Explain what a matrix structure is and the challenges of working in a structure such as this.