Introduction
An organizational structure is a model under which hierarchical units pool resources and contribute in an institute and they do so to achieve a common goal to contribute and serve a regular aim. Organizations can be said to be clustered entities with a modification outlook. There are many approaches that can set up an organization’s structure and these approaches are dictated upon by the organization’s ambience and objectives. It is important to note that the mode of operation and the activities that will be undertaken by an organization will be dictated upon by the structure of the organization (Schultz 1999:126).
Organizational structure lays a foundation under which the responsibilities are allocated to diverse entities within the organization and also diverse entities are allocated diverse functions for the organization. These entities include individuals, groups of workers, departments, sites and branches. Contracting of individuals in an organization can be done in two phases and they are timely limited contracts also referred to as work orders or timely unlimited contracts also referred to as program orders or contracts of employment (Vaill 1996:23).
This assignment will look into how Good Mark Precision Industrial Limited has used the concept of organizational structure to structure its mode of operations and activities and also it’s hiring of people for the success of the company. The assignment will also look into how the organization’s structure has been instrumental in ensuring that the organization has been successful from the day of its inception to today and how it has utilized its organizational structure to develop in various concepts of industry (Connors 1997:158).
Background
Organizational structures have been deemed to be very instrumental in ensuring that an organization has achieved its desired objectives. There are various organizations in the world today and they may be corporate, non-profit making or non-governmental but it is important to note that all organizations have some objectives that they need to achieve. For an organization to achieve its objectives, it is paramount that there are various forces behind the organization’s endeavor to achieve this and one of the most important forces is the structure of the organization.
The structures of an organization address various issues including such things as the human resource and the relationship between the organization and the publics. The publics include such entities as the customers, suppliers and other entities that are related to the organization. This means that organizational structures are very important for the organization as well as the human resource and the publics. This means that the organizational structures as a very integral part of the organization in its efforts to achieve some set targets, goals and objectives.
Good Mark Industries
Good Mark Precision Industrial Limited has lately been established in China and it’s a foreign owned venture and is invested by Good Mark Industrial Limited which is headquartered in Hong Kong.
The company is involved in the production of the plastic mold and it has been doing so for the last two decades or more. It has fully developed from a small company with its employment being a mere three hundred personnel to its present day status with an employment of about five thousand personnel and a significant number of the workers in the organization are highly skilled engineers. It is mainly occupied in the manufacture of plastic mold, mock up samples, plastic injection, mold decoration technology, electronics components assembly and mold standard components
The company has greatly improved its sales volume over the years and in the year 2006, the sales turnover was estimated at over four hundred million dollars.
The administration team of the organization is created by proficient personnel from Mainland China, Japan and Hong Kong. The organization also supplies other foreign owned organizations within the Guangdong Area and exports in other Asian countries like Japan, Thailand, Malaysia and others. Because of its investment in advanced technology, the organization has also been recognized and praised by clients from all regions of the world and most importantly the local clients.
The company is also an ISO 9001: 2000 certified and hence it is committed to ensuring that that customers are afforded excellent quality and services from the company through the company ensuring that it delivers products in time and it is cost effective.
There are diverse trading kindling most notable in Shanghai and Hong Kong. The organization occupies 42,000 meters squared and a construction area of 70,000 meters squared located in Bao An factory. It also has 50,000 meters squared and a construction area of 80,000 meters squared in Chang An Factory. It doles out a clientele of about eighty percent from the foreign invested enterprise flags down from the Pearl Delta Region.
Good Mark has a well laid out principal of corporation with the title of ‘unceasingly strive for betterment and create a better tomorrow. It has the following components; it is customer oriented and continuously strives for the organization’s improvement. It also has the component creating a better tomorrow and also outpacing competitors with the use of their one-upmanship. The most important component is the contribution to the society and also the creation of a positive working attitude.
Good Mark’s Organizational Structure
Good Mark’s organizational structure has an outlook of the Bureaucratic structure whereby the organization’s structures have some degree of standardization. This is apt for the organization because it is involved in complex and large scale operations and has adopted a tall structure. However, this has not limited the organization to bureaucratic structure and this can be evidenced by the fact that the organization also has post-bureaucratic structure.
It is important to note that post-bureaucratic structure can be vied in two perspectives; the generic perspective and the specific perspective. The nonspecific outlook is commonly used in reference to a wide assortment of ideas that have been developed from the 1980s and they are in distinction with the bureaucracy that was affirmed by Weber to be the principle type of bureaucracy.
These comprise total quality management, matrix organization and the traditions management although there are other structures that fall under its umbrella.
The most important thing to note is that all these have some elements of bureaucracy in them and all of them include the core elements of bureaucracy in them. Hierarchies and power still exists even today in diverse organizations and they are still bound by rules and legal responsibility.
Some experts have argued that post-bureaucratic structures are merely revised bureaucratic structures rather than new introduced structures that have incorporated the aspects of formalization, enforcement of rules and regulations and formalization. This have only shifted structures from organizational structures to cultural structures (Jurow 1993:78).
There are other theorists who have developed post-bureaucratic hypothesis in organizations and have provided discussions which are comprehensive in an attempt to illustrate organizations which are not basically bureaucratic. This includes organizations which have based their decisions on consensus and not on command and authority and hence makes the organization to a network and not the traditional hierarchical.
These types of organizations have no boundaries and there is the insistence of meta-decision rather than the traditional rules on decision making. However, these structures are mainly used by cooperatives and non-profit organizations which are based on the community. This is done in an attempt to enhance participation and also the empowerment of the people who may be oppressed (Chawla 1995:256).
There are still other theorists who are developing complexity theory and the structures of the organizations and they argue that simple structure can be very beneficial to the adaptations of the organizations. Some experts have used these theories to highlight how significant it would be for an business to utilize straightforward structures to develop a quality product and they have linked their study to the plain structures and ad hoc learning.
Still there are other theorists who have focused on reviving the older interest in the manner in which the structures and also the aspect of strategy are related to the environmental dynamics (Bolman, 1997). Good Mark also has an outlook of functional organizational structures and this can be proved by the fact that the organization has grouped the workers on the basis of the functions of the jobs they specifically complete for the organization. This can be seen by the fact that the organization has formed various departments which can be expressed by the figure below.
Good Mark Structure
These departments include financial department, administration department, purchasing department, quality control (QC) department, injection department, tooling department and the sales department. Under these departments are various sub departments an example be the financial and custom sub departments under the financial department and the marketing and quoting sub departments under the sales department (Schien 1992:581).
Good Mark also has an outlook matrix organizational structure and this can be evidenced by the fact that the organization has grouped the employees by both their function and their products. This structure can be said to be a combination of there other organizational structures. It is important to note that this can only be applicable to organizations that are involved in the production of more than two products.
Good Mark is involved in the production of various products ranging from plastic molds to decoration molds. This is very beneficial for the organization because it uses groups of employees to perform a given function and this helps the organization in taking advantage of the strengths of these groups and also making up for the weaknesses that can be said to be in the decentralized and functional organizational structures (Nadler 1992:162).
In a matrix organizational structure, the organization will differentiate between the two products and will form departments that are only accrued to the two products. This means that manufactured goods A will have a different sales department from manufactured goods B and this relate to all departments. It is the most complicated of all organization structures and this can be endorsed to its various rudiments which include weak or functional matrix whereby a scheme manager’s authority is limited to supervision the characteristic of cross-functional projects. This means that the managers are only allowed to control the resources that are provided for their areas.
Another element is the balanced or functional matrix where a manager’s role is to supervise the project. In this element power is communal in identical terms by the various functional managers. The third element is the strong or project matrix where a project manager is overly responsible for the project. The manager has the duty of providing the technical expertise that is needed for the project and also the provision of the resources for the project’s success. However, the most important thing to note is that the best results in a matrix organization structure can only be achieved depending on the function and the purpose of the organization (Chaleff, 1995).
The organizational structure of the Good Mark structure can also be said to be a flat structure which is most ideal for small companies but there have been noted to be large organizations that have successfully utilized this organizational structure. It is important to note that once a small organization starts with this type of organizational structure, it leads to the organization developing and having complex outlook and the increase of departments. In many instances this can lead to bureaucracy.
It involves numerous command levels and the existence of duplicate companies in different expanses in the world. This is an example of the Good Mark organization which already has several branches around the Asian region (Mason 1984).
It is important to note that various companies that have adopted this organization structure have failed a good example being the Shell Corporation which had to go back to the matrix organizational structure. However, with the best utilization of this structure and the incorporation of other structures, the company is deemed to have one of the best customer services and this can be said of the Good Mark organization (Abernerthy; 2004).
When teams reports to different heads, there is the creation of a team work spirit and this ensures that the employees have the liberty of making independent decision and also affords the employees the freedom of developing their skills. This organizational structure can be said to be a complicated form of matrix organizational structure and has been employed by such multinationals as Toyota, Procter & Gamble and Unilever.
This has been fueled by the concept of globalization and its increase in international market competition and the increase demand of quality products and services by the customers. It has also reduced the traditional hierarchical outlook of companies and has transformed the companies to be more flat, virtual and fluid. This has also fueled the Good Mark organization to be a player in the global market because of its insistence in quality products and also customer satisfaction (Tushman 1997:501).
Good Mark has also incorporated some of the modern organizational structures in its operations and one of them is the network structure and this can be attributed to the fact that big organizations have been facing the risk of becoming too clumsy to proact, act and react efficiently and this have led to the organizations contraction out any function of the business if it can be done more efficiently and make an economical sense.
The only function of the managers is spending a lot of time coordinating the external networks as well as controlling them and this incorporates the use of information technology to communicate and most importantly the electronic means of communication which keeps the managers and the networks at constant communication. Good Mark has started using this organizational structure. It has the advantage of lowering the operating costs as well as the incorporation of low cost strategy (Bolman, 1997).
Good Mark Organizational goals and objectives
The organizational structures of the Good Mark organization are to ensure that the company is company oriented. This means that the customer service of the company is held in a very high esteem by the management and this can only be achieved through the incorporation of organizational structures that promote the customer services of the organization. To this effect, the organization has adopted elements of matrix organizational structures which ensure that the organization has a well developed customer services department (Eadie 2000:156).
The company also has an objective of ensuring that it continuously strives to improve in its various aspects. This can also be helped by utilizing good organizational structures which will ensure that the organization keeps improving in relation to the changes that corporations are experiencing especially with the concept of globalization which have led to the corporations facing stiff competition as well as the market demanding high quality products and services. To this effect, the company has incorporated elements of functional organizational structures which ensure that the company improves on its products as well as its customer services to improve competitively in its nature of business (Berg 1997:45).
The company also has the objective of ensuring that it creates a better tomorrow. This can also be achieved through the company ensuring that it incorporates various organizational structures that will ensure that it remains a company that is concerned about the future. This means that the company’s organizational structures have to look at the aspect of the opportunities which are currently available and those that are available in the future.
To this effect, the company has adopted some very important structures which ensure that it fully utilizes the present opportunities as well as the future opportunities and this can be evidenced by the fact that it has already incorporated the network organizational structures which have ensured that the company will utilize cheap and efficient strategies (Gassler 1986:159).
The society is also very important for the success of any organization. It is for this reason that the organization has set as one of its objective the contribution to the society. This can also be achieved through the incorporation of organizational structures that will ensure that the organization has the elements of social corporate responsibility and this will eventually pay off because its public image will be improved and hence its customer base will increase over time.
This means that the organization will have to ensure that its organization structure will have an important and positive impact on the society. To this effect the organization has utilized various organizational structures to ensure that the organization contributes to the society through various management and employee oriented activities (Abramson 2004:251).
One of the most important assets of any organization is the human resource. To this effect, the organization has set as one of its objective as the creation of a positive working attitude towards its employees. This means that the organizational structures of the organization has played an important role in ensuring that the employees are motivated to work towards the success of the organization in an overall outlook.
When the employees are motivated to work for the success of the organization, the organization benefits very much and all its objectives can be achieved. To this effect, the company has incorporated the organizational structures that do not prohibit the workers from making independent decisions as well as improving on their soft and hard skills. The organizational structures can be said to be the matrix, functional and pro-bureaucratic organizational structures that the company has incorporated in its organizational structure (Bolman, 1997).
Good Mark Organizational structures contingencies
The organizational structures contingencies of the Good Mark organization have been manifested in its various successes. One of the successes can be said that it has been able to be one of the most competitive organizations in its region and especially in its field of operation. This can be attributed to the fact that the organization has incorporated some of the most efficient organizational structures that have helped the organization to realize this objective (Adler 1999:14).
Another manifestation is the organization’s success in continued improvement and this can be attributed to the fact that the organization has been improving in various fronts. One of the improvement is that it has been able to continue growing and developing and the company that started with a personnel of about three hundred is now employing over five thousand employees per year. The sales volume have been improving over time and its relation with the customers have also played an important role in ensuring that the organization is one of the successful companies in the region. This can be attributed to the fact that the organization has been able to incorporate various organizational structures in its activities and operations (Chaleff, 1995).
Another contingency of the organization is that it has successfully created a positive working climate for its numerous employees in its various departments and also in its various functions. This can only be achieved through a well laid out organizational structure that incorporates all the positive aspects of the various organizational structures and its gets rid of all the negative aspects of the organizational structures.
It is important to note that the organization has noted that the most important aspect of the organization is the human resources and this have helped it to come to up with the best organization structures that help the organization to come up with the best human resource it has the capability of achieving (Bhargava 1992:369).
Good Mark organizational limitations and weaknesses
The organizational structures of Good Mark have some limitations and weaknesses as well. One of the limitations is that the organizational structures of the company has not been able to help the organization to invest in new ventures and all their current ventures can be noted to be based on the original venture of the rubber industry. This is very limiting for an organization of such a caliber and hence the organizational structure should ensure that the organization is capable of investing in other industries as well.
Another weakness of the organizational structure of the Good Mark organization is the fact that it has not been able to market efficiently to all regions of the world and it can be said to be currently focused on the Asian markets and has no other markets apart from this region. This can be very destructive especially in these times of globalization whereby the organizations are targeting the international market. The organizational structure of the organization should ensure that the organization has a share of the global market and this can only be done by ensuring that it has networks in most of the world’s regions.
The organizational structure of the Good Mark organization also has been noted to have the weakness of not ensuring that the environment is protected on its own capacity. This is because although the company has a vision of service to the community, most of its activities are contributing a lot to the environmental degradation around the areas of its factories. This can be very destructive to an organization of such caliber and the organization structure of the company should ensure that the organization contributes positively to the restoration of the environment.
The organizational structure has also failed in the marketing of the organization’s products and this can be attributed to the fact that the organizational structure of the organization has relied on the traditional modes of marketing. This can be evidenced by the fact that the organization’s market has only been limited to the Asian region and they have not been involved in international marketing. The organization should ensure that the international marketing is done through the use of various tools that are aiding other organizations in selling their products world wide and the most influential is the information technology.
Organizational goals and the organization structures of Good Mark
The organizational structures of the Good Mark organization can be said to be in line with the organizational goals of the organization. This can be attributed to the fact that pertinent issues of the organization have all been addressed by the organizational structures of the company. This can be attributed to the fact that the organization has incorporated various organizational structures to address the organizational needs that it has and also the challenges that the organization is facing due to increased competition and the global market requirements which have led the organization to incorporate multiple organizational structural outlook in its activities and operations.
The fact that the organization is continuing to enjoy success even at present with all the hardships that have been brought about by shifting markets and the global economic recession, means that the organization has taken the right organizational structures (Chaleff, 1995).
Conclusion and Recommendations
The organization has been noted to have adopted the right organizational structures as per its requirements. Hence, the company will need to ensure that the organizational requirements of the company are still addressed by the organizational structures that it has adopted. However, the organizational structures of the company have not been efficient in ensuring that the future organizational challenges are addressed. This study recommends that the organization should also adopt some organizational structures that will ensure that the organization’s success is not limited to some challenges of the future.
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