Organizational Design and Structure

ORGANIZATIONAL DESIGN AND STRUCTURE 9

OrganizationalDesign and Structure

OrganizationalDesign and Structure

MassCustomization in Service Industries

Thereare three main differences between a manufacturing organization andservice organization. Firstly, manufactured products are tangiblewhereas service products are not. Secondly, there is transparency offlow in manufacturing products whereas in service products, there isless flow of transparency. Thirdly, the customer is more involved inthe service industry whereas in the manufacturing industry thecustomer is less involved.

Masscustomization is a common approach in the manufacturing sector andless common in the service industry. The principles of masscustomization can also be applied in the service firms. In servicefirms, mass customization is necessary because there is the directinteraction between consumers and the service being provided (Buttle&amp Maklan, 2015). This means that the consumers are a greatinfluence to the process of service delivery and the general outcome.Mass customization ensures that the customer is able to getcustomized value (Trentin, Forza&amp Perin,2012).

Inthe service industry, mass customization will help the company tooffer new solutions to the consumers and be able to stay ahead oftheir competition. Through the use of new technological possibilitiesa company can give their customers customized solutions. For acompany to be successful in achieving this, it is important that oneunderstands the three differences on tangibility, transparency andcustomer involvement in the service delivery.

Masscustomization ensures more interaction between the customer and theservice provider. This is beneficial, as the exchange of informationbetween the two parties will ensure that the customer gets thesatisfaction needed to keep him or her among ones clients. There area few challenges for a company willing to take this approach. Forexample, in most cases customers do not know what exactly they want.Secondly, it leads to higher varieties and smaller quantities thusaffecting the economies of scale. Thirdly, the product variety onoffer should match its perceived value to the customer. A companyshould find ways of addressing the challenges to remain ahead ofcompetition.

TeachingManagement in a Business School

Amongthe many courses, that business schools focus on is teaching businessmanagement. Some have criticized this aspect saying that the valuesare learned out of experience and a theoretical approach would not domuch to instill management skills in an individual. Critics also saythat there is no single approach to handle management challenges andteaching management skills would thus limit a manager’s thinking.

Inmy opinion, teaching management skills to business students isessential in equipping them with skills to help them handlechallenges that would come their way. It will tell them about what toexpect in the field (Glen, Suciu&amp Baughn,2014). It will teach them about critical management skills and theywill be able to handle challenges from all angles.

Amanager’s job cannot be analyzed like other process and teaching astudent management’s skills does not mean that we are analyzingissues on management. Experience is important in handling managementchallenges but in the classes, one will learn aspects of criticalthinking in addressing any challenges that may come by.

Technologyand Management

Technologyhas changed a lot of fields including the management field.Traditionally, communication between a high-level manager and asupervisor could only be made through face-to-face encounters. Today,the management can send emails or even use other online forums tocommunicate. This has raised concern whether technology willeventually help high- level managers to do their work much moreeffectively. This essay will address this concern.

Anybusiness that it not well versed with technology is a business thatis not keen in keeping up with the changing trends. An onlinepresence of the customers is also expected and this means thattechnology is important for any level of management includinghigh-level management.

Technologywhen applied in any organization will enable the managers to do muchbetter than they are doing with less face to face encounters. Technology speeds up processes and will also enable an organizationto save on cost. To take maximum advantage of technology, it isimportant to look into the following:

  • Do the members of staff get stuck in less important things?

  • Is there duplication of effort between departments?

  • Are there tasks that could be done faster if automated?

  • Is there a likelihood of change in the business needs or processes?

  • Who is using the existing IT systems, and what are they doing?

Technologywill help to address all these concerns and lead to the profitabilityof the business. Whereas it is important to have face-to-facecommunicationin the organization, a lot of time and cost will be saved iftechnology is involved especially in high-level management leading tothe growth of the organization.

BustingBureaucracy in Organizations

Bureaucracyin an organization refers to that model that is used by sociologistsand professionals to govern a certain firm (Johnstone, 1993).Bureaucracy in an organization brings negative products and it isthus important that a firm looks for ways of addressing problems ofbureaucracy in an organization (Adler, 1999).

Massivepractice of bureaucracy is dangerous in an organization in that itmakes the customer to feel less important. The reason for this isthat it puts the customer third, the employees second and managementin the first position.

Thereare six principles of bureaucracy:

  • Hierarchical bureaucracy- applies where there are levels of management and a higher level controls a lower level.

  • Management by rules- this allows any decision made at a higher level to be effected efficiently at the lower levels.

  • Functional specialty- people are organized into units depending on their specialty.

  • Up-focused mission- the organization focuses on serving the agencies that empowered it.

  • Purposely impersonal- aims at treating customers and employees equally without looking into their personal differences.

  • Employment based on technical qualifications

Thereare organizations that have taken steps to bust bureaucracy in theirfirms. Fast Company describes companies that have taken this line.One of these companies is the A SEA Brown Bovery. When the mergerbetween Percy Barnevik’s company and Brown Bovery’s company tookplace, there was instruction to the effect that all employees at theheadquarters should get jobs in the company that focused on thecustomer. All who could not do so were laid off. All decisions weremade with the involvement of all stakeholders. The company did sowell after this change.

TheBusiness Week featured the Fortune 100 Company, that felt that theexperimental lab in R&ampD department was too bureaucratic anddecided to change things (Pourdehnad).There was change in management where the employees who previouslywere seen as functional heads started being seen as program managers.The survival of an employee in that organization was based on howmuch a customer got satisfied.

Teachinga No Growth Philosophy in Business Schools

Inmost cases, a company is measured by its growth and this mindset hasbeen carried on by many organizations. There is ongoing debate aswhether a no growth philosophy should be taught in schools. This isbecause many organizations have realized that the growth philosophyposes a challenge because other important factors that would havebeen used to measure the success of a business are not used.

Itis important that businesses do away with the growth philosophy as ittends to mean that a company’s expansion means that it is doingwell. There needs to be other ways that are innovative enough thatthe business can focus on. A company could be successful and yet itis not growing. With proper management policies, a company can stillsucceed and yet there is no growth.

Theno growth philosophy should also be taught in schools as it will helpthe students to move away from the mentality that a company’ssuccess is based on its expansion.

Applyinga Biblical Worldview

Abiblical worldview focuses on an individual’s life that is centeredon loving God and serving him. Having a biblical worldview goesbeyond Christian morality and living a life based on the teachings inthe Bible (Smith, 2015). The biblical worldview should govern the waya Christian responds to life issues and, not that life issues likepolitics should govern the way a Christian interprets the Bible.

Itis also important to note that this worldview should not be appliedbased on one doctrinal approach. Instead, it should be applied as awhole.

Thisworldview should be used to determine how an individual willunderstand their selves, the reality as well as those who are aroundthem. This way a person will be able to solve life’s problems.

References

Adler,P. S. (1999). Building better bureaucracies.&nbspAcademyOf Management Executive,&nbsp13(4),36-47. doi:10.5465/AME.1999.2570553

Buttle,F., &amp Maklan, S. (2015). Customer Relationship ManagementConcepts and Technologies. (3rd ed.). Hoboken: Taylor and Francis.

FASTCOMPANY: ELIMINATING BUREAUCRACY- How to get rid of Bureaucracy, Eliminating Waste, Unnecessary Approvals and Speed-breakers. (n.d.). Retrieved April 15, 2015, from http://www.1000ventures.com/business_guide/crosscuttings/change_fast_decisio n_bureaucracy-out.html

Glen,R., Suciu, C., &amp Baughn, C. (2014). The Need for Design Thinkingin Business Schools.AcademyOf Management Learning &amp Education,&nbsp13(4),653-667. doi:10.5465/amle.2012.0308

Harmon,R. (1993). Reinventing the warehouse: World class distributionlogistics. New York: Free Press .

Johnston,K. (1993). Busting bureaucracy: How to conquer your organization`sworst enemy. Homewood, Ill.: Business One Irwin.

KellyS. (2009). Is There A Future in ‘No-Growth’ Businesses? Independent Street.: Wall Street Journal .

Pourdehnad,J. (n.d.). Bureaucracy transaformed. Retrieved April 15, 2015,from http://www.businessweek.com/business_at_work/bureaucracy/

Smith,C. (2015). Developing a Biblical worldview: Seeing things God`s way.B&ampH Publishing Group.

Trentin,A., Forza, C., &amp Perin, E. (2012). Organisation design strategiesfor mass customization: an information-processing-viewperspective.&nbspInternationalJournal Of Production Research,&nbsp50(14),3860-3877. doi:10.1080/00207543.2011.597790