Organizational structures appeal differently to different organizations and before a firm adopts any given model, special considerations have to be made.
Functional structure is largely based on hierarchy where with articulated office positions and professional advancement plan through promotions. This has the advantage that you can organize and delegate work based on personal proficiency but limits to only a few essential departments.
Divisional structure tries to group different department together to centralize work in big companies. These are classified into different subdivisions that are organized in a functional design. Exercising managerial functions is easier with this model.
Matrix structure combines both the divisional structure and the functional. Workers are organized in teams combining divisional functions with functional ones.
Team structure design delegate function based on a certain objective. Workers from multiple departments come together for certain purposes hence integrating departments. This is good for diverse ideas
Network structure different organizations share different expertise on contractual basis when need arises. This saves on capital but also could risk company’s operational information. Future organizations will work on an integrated model that combines the effectiveness of all these structures to minimize overall cost as well as resources.
2. What are the pros and cons of outsourcing? When is it desirable and necessary?
Outsourcing has its cooperate advantages which manage the overhead cost to the business. In house support has larger cost implications with equal productivity to cheap outsourcing. Outsourcing allows you to offer a full day support for hosting as opposed to fixed hours that would be standard for hired staff. Outsourcing gives you the manpower of multiple experts hence improving quality of service.
The list of drawbacks that come with this entail; lesser control measures can be exercised on outsourced personnel. Outsourcing may lead to language barrier as the current market is majorly concentrated in India among other exotic countries. Outsourcing support hosting may create a conflict of interests with companies who with competing interests.
Outsourcing entails according trust to third parties which could be a business risk. It should therefore be carefully considered where need be with a vetting process before assigning hosting support. This becomes plausible when the company has to minimize cost or cannot allocate extra staff into such endeavor.
3. What are sources of power for managers? How does power relate to emotional intelligence? How can they both be used in providing vision and direction for an organization and its employees?
Managers get their powers over other people from five main sources including reward, legitimate, expert, referent and coercive. In addition to these attributes, they also need to possess critical information and have access to crucial resources. To date, these sources offer power to most business managers worldwide. To lead a team, you need to have sound situational awareness as well as the ability to perceptively tune yourself and your emotions. Emotional intelligence is the ability of leaders to overcome stressful situations by familiarizing with their feelings or emotions, understanding them and being aware of how your actions and words may affect those around you. Emotional intelligence comprises of four elements namely: self-management, relationship-management, self-management, and social awareness. Combining emotional intelligence and managerial power in a workplace setting increases the probability of building an exceptional team. An exceptional team may in turn be compass that directs the business to either success or failure. When the team is motivated, they are bound to give their all and see the project side. Vice versa is true.
4. Is corporate culture an important element in an organization and its strategic direction? How can organizational culture be created, influenced, and changed?
Corporate culture encompasses the fundamental values and beliefs of an organization which have been tested time and again and approved to be effective. Approval means that they should be taught to new members and perceived as the correct way to behave or feel whenever they find themselves in difficult situations. The organization’s culture can be changed, created or influenced or shaped in couple of ways. One means is to emphasize on key themes. Second is to institutionalize all values that automatically incorporate the company’s desired values. Third, the business should focus on placing the organization on the global map by delivering communication values, attitudes, beliefs, religion and relevant education about the products. Last but not least, organizational culture can be formulated as a result of implementing some specific policies, tactics and strategies.
References
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2-3), 172-194.
