Management practices that effect to the organization structure

 

Management practices that effect to the organization structure

Managers' organizational design responsibilities include developing or improving an organization's structure. One of the three responsibilities that belong to the organizing function in the planning, organizing, leading, and controlling (P-O-L-C) framework is organizational design. As much as individual and team-level factors affect employee attitudes and behaviors at work, the organizational structure may have an even greater impact.

Organizational structure

The coordination of individual and team work inside an organization is referred to as organizational structure. Individual work needs to be controlled and coordinated in order to accomplish corporate goals and objectives. Structure is an important tool for creating coordination since it defines reporting connections (who reports to whom), formal communication routes, and how individual activities are connected. Organizations can operate under a variety of different structures, each of which has certain benefits and drawbacks. Some organizational forms are better suited for specific surroundings and jobs, yet any poorly managed system will be troubled by problems.

 Aspects of structure

·         Centralization

The degree to which decision-making power is concentrated at the highest levels of an organization is referred to as centralization. In centralized businesses, key choices are frequently taken at the top of the organizational chart, whereas in decentralized businesses, employees who are closest to the issue at hand make decisions and address issues at lower levels.

Where would you feel more at ease and productivity as a worker? You are not the only one if you choose "decentralized" as your response. Lower-level workers feel more empowered in decentralized organizations because they have greater authority. Employees frequently assume that decentralized businesses offer higher levels of procedural justice to employees since decisions may be made more rapidly. Decentralized companies are more likely to draw  job seekers. (Nelson, G. L., & Pasternack, B. A. (2005)).

However, centralization also has its advantages. Some employees are more comfortable with an organization where their manager confidently gives instructions and makes decisions. Centralization may also lead to more efficient operations, particularly if the company is operating in a stable environment. (Ambrose, M. L., & Cropanzano, R. S. (2000)).

       

·                                                                         Formalization

The extent of written and clear articulation of an organization's policies, practices, job descriptions, and norms is referred to as formalization. Structures that include a lot of written rules and regulations are said to be formalized structures. These systems use written rules to regulate employee conduct, leaving limited room for individuals make individual decisions. Formalization has the benefit of improving employee behavior predictability. Employees are aware that they should consult a manual or a procedural guideline if an issue occurs at work. As a result, employees handle issues uniformly throughout the company, which promotes consistency in behavior. When staff is listening to a customer's issue, they may need to take action, but the solution might not be outlined in any procedural rules or manuals.

• ·     For example, while a small number of airlines, like Southwest, do a good job of empowering their staff to handle complaints, in many airlines, lower-level staff members have little authority to address a customer issue and are restrained by strict rules that specify a small number of acceptable responses.

 

·               Hierarchical Levels

The number of levels a company's hierarchy has is another crucial component of its structure. Tall structures have several levels of administration between the frontline staff and the highest level, whereas flat structures only have a few layers, keeping the size of the organization constant. Tall buildings often have fewer employees reporting to each manager, giving managers more opportunity to oversee and keep an eye on employee behavior. In contrast, flat organizational systems have more employees who answer to each management. Managers will be less able to give close oversight in such a system, giving each individual more opportunity to take initiative.

• ·     For example, departmentalizing by product may enhance innovation and speed up reaction times if the organization has several product lines. Although each of these departments may have specialized marketing, manufacturing, and customer service personnel serving the relevant product, the business may also discover that centralizing some operations and maintaining the functional structure makes sense and is more advantageous financially for positions like human resources management and information technology. If the same organization serves several nations, it may also establish geographic departments.

Management practices

According to Jelinek, S. (2010) the term "management practices" often refers to the techniques and inventions that managers employ to increase the efficiency of their organization's work processes. Empowering workers, educating staff, implementing plans for enhancing quality, and implementing different new technologies are all examples of common management techniques.

• ·       Example – Reward Hard Work

Nobody enjoys having their labor go unnoticed. Employees feel valued when their efforts and accomplishments are acknowledged and they are thanked for a job well done. Although it sounds like a no-brainer, appreciation's beneficial effects are sometimes overlooked in corporate management training. Some bosses may even believe that being overly sentimental compromises their authority. Rewards, on the other hand, encourage individuals to work more and promote brand loyalty.

 

Organization structure & Management practice

Organizational design Details on tasks, directions, and management practices that are directed toward achieving organizational goals and objectives are provided by management practice.

An additional system for describing a hierarchy inside an organization is organizational structure. Each position and its responsibilities are named, categorized, and organized. Describes the company's internal information flow from level to level.

Conclusion

People, automated systems, and the firm as a whole must all be taken into account while developing an organizational management system. A company must be able to properly manage itself if it is to expand financially and contribute to the wellbeing of the community in which it operates. A system that unifies all stakeholders, all areas of the company, and all facets of business operations is essential to that control. The management of the company must understand that a management system affects not only the culture of the organization as a whole but also the culture of the neighborhood.

 

Reference

Organizational Structure and Change (no date) Lardbucket.org. Available at: https://2012books.lardbucket.org/books/management-principles-v1.0/s11-organizational-structure-and-c.html (Accessed: November 17, 2022).

Organization structure Management practice (no date) Elite-c.net. Available at: https://elite-c.net/training/organization-structure-management-practice/ (Accessed: November 17, 2022).

Jelinek, S. (2010) The impact of management practices and organizational structure on firm performance. 2. Auflage. Grin Publishing.