Organizational Theory, Design and Changes | Free Essay Example

Organizational Theory, Design and Changes

Words: 590
Topic: Business & Economics
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Typical local business in my community

The typical local business which I have identified in my community is banking. The political environment under which the bank operates is very stable with minimal political risks. In 2008, the world underwent a global recession, which was the biggest since the great depression of the 1930s. Just like other businesses, the bank was not exempt from the effects of the recession. The bank operates in a friendly social environment; which has been achieved through the sensitivity of the bank to the needs of the local customers as well as through the provision of very friendly products and services in affordable prices. The bank also engages in charity work and other corporate social responsibility activities, thus creating a very conducive social environment for its operations. It has embraced and adopted technology in most of its operations and service delivery. It also provides its customers with various online banking services through a website where customers log in and do online banking at their places of convenience.

Mechanistic and organic organizational structures

Organizational structure refers to established formal relationships among various units of an organization. The purpose is to make sure that organizations get their work done; which is made possible by the division of labor through which coherence is attained in an organization (Jones 16).

A mechanistic organizational structure is hierarchical. It has the board of directors at the top, middle management, senior supervisors, and the workers in that order. This structure is characterized by a hierarchical authority, written rules, and regulations that specify the exact nature of relationships among employees and how tasks are carried out. The mechanistic organizational structure is also characterized by a failure to share power with others. Such structures are common in organizations which are led by autocratic leaders who are the only decision-makers, and they perceive the other employees as objects which are not capable of making any decision. The organic organizational structure, on the other hand, provides a support system that enables various organizational departments to work independently with little supervision and control.

A mechanistic organizational structure may be used in organizations which have clear guidelines on the roles which employees are supposed to perform. It is also suitable in organizations where authority and power are key determinants of the quality of services provided by an organization. An organic organizational structure, on the other hand, is used in organizations where there are no clear guidelines on what to be performed by employees. It is also suitable in organizations which have a cohesive organizational culture which embraces teamwork. The two types of organizational structures cannot be used together because they apply to different organizational cultures.

Centralizing and decentralizing authority at Sony

From Sony’s case study, stiff competition from rivals forced Stringer to shift from decentralization to centralization of authority to ensure that he brought everything under his control. The constant rivalry among the departmental heads in Sony had been a major cause of the stagnation of the organization as far as innovation was concerned.

Stringer’s approach to organizing

I would describe Stringer’s approach to organizing as mechanistic because he did not allow other leaders in the organization to exercise any power or authority in organizational decision making. By so doing, he created a mechanistic structure where he was the only one with the power and authority to make decisions affecting the organization’s operations. Through the organizational structure, he intended to make the organization maximize its productivity and achieve its objectives using minimum resources, efforts, and within the set deadlines.

Works Cited

Jones, Gareth. Organizational Theory, Design, and Change, Sydney: Pearson Education, 2012. Print.