Management Structures in Effective Business Development - Literature review Example

Management Structures By Student’s Name Code +course name Professor’s name University name City, State Date Management Structures Introduction The ability of a company to make it in the market and create a continued forward motion is primarily defined by the efficiency and effectiveness of such an arrangement. The monetary values of doing business have been going and the recent economic recession has forced many executives to put in place measures that will keep their organizations afloat. In the face of a receding global economy, managers have been forced to lay off their employees in order to cut cost. Although this exercise is really decisive in helping people concentrate on their designated responsibilities, a congruent size make sure that the employees in their departments execute their duties with ease. The desire for a structured organization by executives makes some organizations have poor corporate productivity, which leads to lower earnings at the end of their fiscal year. As a consequence, such organizations find it hard to keep their market share, while at the same time, fails to blow up their lines. How management structures are influenced by the size of the company Bartram (2012) has noted that the size of the organization is normally reflected on the number of people employed by it. According to him, a company at infancy stage may have less than ten people working. Nevertheless, over the years such an organization may grow and bring in more people with different competencies. The governing body structure of a company has been established as an integral variable that has continually influenced the structural conception of systems. There are researchers who are of the opinion that size influences the strength and the efficiency of an establishment. In designing the organizational structure, the company has to factor in the size of such a company. According to Manning, (2014) a small organization may be negatively affected by too much specialization because the departments involved are not big to share responsibilities. Manning (2004), also points out that, in large organizations, there are complex matters that ought to be sorted out, and this calls for more layers of management. According to Dressler (2004), every company has growth as one of its primary objectives. He says that the push to grow is influenced by three factors which include; organization goals, executive advancement and the economic health. Dressler (2004), in his studies argues that, as an organization grows, both challenges and opportunities increase in the same measure. The bigger the organization, the more it becomes influential, and there are increased revenues. In order to become a global organization, huge resources should, therefore, be committed. Large organizations are associated with vertical and horizontal involvedness. In addition, they are more decentralized (Afzalur, 2009). According to Afzalur (2009), the founders of such companies delegate the authority to departmental heads because they are in a position to deal with the issues within their jurisdiction. Further down, the department heads have to break down the tasks allocated to junior staffs so that the issues required by the heads of the company can be tackled in a holistic manner. This proves that owning a complex body part that is well devised in an organization promotes effectiveness and efficiency, accountability and transparency. This implies that an individual will be held accountable based on what he or she was allocated to manage. In addition, the fact that tasks were broken down shows that the division of labor in an organization makes the work be completed in an effective way. On the other hand, small establishments have been known to be reactive and flexible. As a consequence, this assures them continued success in the ever dynamic global economic system. In the modern day world, there is a notable reduction in the average organization's size because most of these companies want to be responsive to their clients. In addition, the small organization structure promotes innovation because the managing style is usually regarded as free flowing. Moreover, the structure of a small organization allows for motivation and commitment amongst the people running it. This means that the people entrusted with running such an organization can employ personal observation to see how things are being conducted by the employees. This move ensures that people carry out tasks allocated to them in a professional manner. The presence of an overall manager ensures that every employee is efficient in his or her work. Unlike large organizations, the governance structure of smaller companies is fast in responding to the employee’s concerns. The human resource department may be located in the same floor as the other offices. As a result, any matters arising are attended to as soon as possible. All the same, in large systems, employees may lose touch with their seniors because of the bureaucracy required. As a consequence, the morale amongst the employees is lost. How management structures are influenced by the technology employed In the contemporary world, there has been an increased usage of technology in diverse facets of the company. With this regard, new terms such as organizational learning, learning organization and fast learning organizations have been minted. The use of the latest technological advances is very important to any organization. Nevertheless, most of these technologies are quite pricy in the short term, but very cheap and valuable in the long term. Some of the biggest transnational corporations in the world today, including the Coca Cola Company has achieved their phenomenal growth by using technology. Whether it is in the manufacturing, processing, administering, or communicating, technology has undoubtedly enhanced the success of many organizations throughout the globe. The utilization of technology reduces physical contacts amongst employees. This saves time and money in the long run Lack of adequate capital has been a major bottleneck to small organizations looking to attain use of advanced engineering. The sum of money demanded to sustain the programs installed is relatively higher, with some companies opting for outdated technologies. As a result, part of their organizational structure remains outdated. According to Bartram (2012), technology can be subdivided into three sections; namely, technology of operations, material used in labor flux and the knowledge applied in their custom. He points out that the right application of these factors can be applied to find out how effective and efficient an organization can get. He claims that there are three factors that are related to the organizational structure. These structures should be able to produce organizational results, as well as realize the objectives set by the company. Secondly, the set structures should be put in a manner that they minimize personal differences. Lastly, the structures are to be used as formal media to establish the capacities of an establishment. This is done because organizations use restrictive and mimetic measures to obtain recognition for a new structure they have set forth for their employees to succeed. How control procedures are an important corollary of management delegation The success of an organization is largely determined by how well it uses its resources at its disposal. The control procedures employed is very critical as it helps the company monitor all the activities being carried out. This not only improves efficiency, but also accountability amongst people handling different departments. Griffin (2014) has observed that different organizations have different methods of controlling their resources. He states that with increased function of technology, companies are finding it easier to delegate responsibilities amongst employees. Nevertheless, most of the companies require that every department has its own unique control procedures. According to him, control procedures have been set instead, so that people can account for what they are doing. In addition, national controls in an organization help organizations safeguard resources, while providing efficient and efficient management of resources. It is worth mentioning that the presence of internal control procedures cannot prevent the natural event of errors and abnormalities. However, its presence can inform the organization management team of looming troubles. Consequently, such organizations can react and provide necessary covers to prevent the happening of such a problem in the present or in future. Moreover, internal control ensures that the directives given by the management are implemented, as staffs are required to record when the task has been completed. It is also important as it is used to assess the suitability of the methods used to conduct the internal controls within an organization over time. The management problems arising from an organization The management of an organization should be in a position to understand the market dynamics, especially in the 21st century where technology has taken the centre stage. There are a number of challenges that the company must deal with in order to become successful in its operations. These challenges include the following: Globalization The increased use of technology has made the world become a global village. As a result, different parts of the world have been interconnected which means people can move and communicate with others no matter the country they are in. This means that, for a company to keep up with others, it has to invest heavily in its ICT sector, although others may not have the financial muscle to do that. For an organization to overcome such challenges, it is supposed to come up with an explicit vision, mission and objectives. Lack of skills Finding talented and experienced employees has become a nightmare for many organizations. This is informed by the fact that other organizations are working really hard to retain their skilled manpower. Secondly, those organizations with huge capital base are able to attract talented and skilled personnel because they are in a position to pay better perks than smaller organizations. Market changes Small organizations are sometimes not able to cope with the ever changing market demands. For instance, small organizations that were affected by the recent world economic crisis find it difficult to cope with the demands of the time financial constraints. Conclusion Irrespective of the size of the company, there should be set structures that help an organization to continue with its operations in a smooth way. The management should make sure that it has a talented and experienced workforce in order to maintain high quality services to its clients. Reference List Afzalur, M., 2009. Current Topics in Management: Organizational Behavior, Performance, and Effectiveness. New Jersey: Transaction Publishers. Bartram, D., 2012.Organizational Effectiveness: The Role of Psychology. Chichester: John Wiley & Sons Ltd. Dressler, S., 2004. Strategy, Organizational Effectiveness and Performance Management: From Basics to best Practices. Florida: Universal Publishers. Griffin, R., 2014. Organizational Behavior: Managing People and Organizations. Mason: Cengage Learning. Manning, K., 2014. One Size Does Not Fit All: Traditional and Innovative Models of Student. New York: Routledge. Read More