Introduction to Organisations and Management Essay - 5

Introduction to Organisations and Management - Essay Example The organization structure and design is essential in an organization as it enables managers to allocate duties and ensure proper utilization of resources. Activities in the organization can be allocated according to function, output, customers, territory, process or cross-functional teams (CliffsNotes, 2011). In a dynamic environment, an organic organization design is preferred as it allows for adjustments as opposed to a mechanistic design which is rigid and ill-equipped to respond to rapid environmental changes. Recent literature has emphasized the use of teamwork in organizations so as to remain competitive and cope with rapid changes. Modern organizations are encountered with new management trends such as; crisis management, use of outside directors, increased use of information technology and need for global management skills (Gitman & McDaniel, 2008). Watson engine components represent traditional organizations which were family owned and bureaucratic in nature. The organizati on thus faces frequent problems of staff turnover and absenteeism due to boredom, lack of morale, non involvement in decision making and lack of a chance for career development. The jobs are highly specialized and employees are not allowed to move from their work stations. Team work is not encouraged and poor communication between staff and the management and between various departments makes it hard for the company to accomplish its goals. H & M consulting on the other hand represents modern organizations which have taken advantage of globalization to establish branches all over the world hence complexity in organization and management. It has also taken advantage of teamwork to ensure success. A learning culture is encouraged to ensure team members personal development as well as organizational development. The organization through its mission and values has established an organization culture where customers and employees are given priority for organization success. Contrary to c ommon belief that large organizations tend to have a bureaucratic organization design, H & M consulting has an organic design that enables it to cope with the rapid environment in which it operates. The differences between the two organizations in terms of how they are operated and managed will be discussed in detail in the report. Organization Structure and Design The organization structure shows the organization is configured and relationship between positions and departments while organization design is concerned with changes to the organization structure (Hill & Jones, 2008). Organization structure reflects the degree of complexity, formalization and centralization. Organization design is determined by the size of organization, lifecycle, environment and technology. Smaller firms tend to have organic structure but as the firm grows, it establishes formal structures and more rules and regulations hence become mechanistic. Due to rapid environmental changes, organizations apply bo th organic and mechanistic structures so as to be flexible enough to adjust to the changes (Gitman & McDaniel, 2008). Watson is a small company and has no room for growth due to unavailability of capital but applies mechanistic structure while H & M consulting is a multinational corporation formed through mergers and acquisitions hence operates in a rapid environment thus uses organic structure. Mechanistic structu