This document will attempt to explain the changes observed in the current business structure, on the basis of theoretical knowledge backed by examples drawn from real life situations.
A firm is an entity that performs different operations and thus has a number of different departments devoted to each function. The diversity of the objective of each department and the individuals that constitute it, makes co-ordination a challenge for the managers in the organization. It is important for a company to build an efficient organization. Henry Mintzberg defined the organizational structure as the sum total ways in which it divides its labor into distinct tasks and then achieves coordination among them. It thus refers to the basic architecture of the company, defines the layouts and the links between different services and directs the behavior of individuals within the company.
[...] Some of these are: Social conflicts (alienation of workers) Lack of motivation resulting in increased absenteeism Increased turnover Quality issues In the current scenario, the models of corporate structure advocated by Taylor and Fayol seem outdated, because organizations are becoming increasingly complex with the introduction of different modes of operation. This has given rise to new models of organization structure. B - Progress towards a structural change The objective of an organization is maximization of profits. However, George Elton Mayo, the founder of Human resource management as we know it, introduced a new dimension into it. [...]
[...] Environment is the central factor in the analysis on Lawrence and Lorch. They have developed the concept of differentiation of companies from each other on the basis of this philosophy. The changes in the working environment force the firms to adapt by adopting new forms of organization structure. II - The new corporate structures A - Exhibition of contemporary configurations Each "step" of an enterprise requires a specific type of structure: Small Business: The hierarchical structure suits such an enterprise, due to its simplicity. [...]
[...] It thus natural that there are now as many solutions to the problem as there are enterprises B - The emergence of new flexible and competitive structures Today organizations tend to reduce their hierarchical levels to control costs and optimize their performance in terms of technology, innovation and delivery. Organizations now prefer to adopt JIT concepts, thus giving rise to various new processes. The mixed structures This is the most commonly used structure. It combines the use of functional skills and advisory bodies coexistence of hierarchy and services.). [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
