The paper "Bega Cheese Company’ s Organisational Structure" is a perfect example of a marketing case study. Organisations employ their design in different ways; some organizations use it as a strategy for realising higher performance. Depending on how it is applied and implemented, organisational design is a strategic approach for delivering higher performance. This report discusses organisational design, how organisations use it as a strategic vehicle in undertaking organisational work and delivering performance. Furthermore, it discusses Bega Cheese Company’ s organisational structure as well as the type of organisational continuum (mechanistic-organic). The report concludes by discussing implications for managers in their focus in the long term survival or organisation. 2.0 Organisational Design Naturally, there are several definitions of an organisation.
McNamara (2012) defines an organisation ‘ in its simplest form’ as “ a person or a group of persons purposely organised to accomplish the same or common goal or set of goals. ” The difference in this definition is that McNamara indicates that one person can form an organisation. In addition, he points out that the critical factor is that the person or persons are having the same intention or purpose.
On his definition, Katz (1996) also recognises the goal focused on the feature of an organisation. However, he suggests that an organisation comprises “ a group of persons working interdependently towards the same goal or purpose. ” The difference is that there is no room for a single person to form an organisation. Furthermore, Huczynski and Buchanan (2007) introduce a new or different definition of an organisation as one of control. As such, according to Huczynski and Buchanan, an organisation is a “ social arrangement for attaining a controlled performance in pursuit of collective goals. ” In this case, it’ s a group of persons working together to attain a particular objective, the engagement of the persons is not indiscriminate but coordinated one in a controlled manner.
As such, the engagement has design and therefore structure. For the purpose of this report, we can arrive at a working definition of an organisation in order to assist in understanding organisation design as a strategic vehicle to undertake the work of an organisation and ultimately to deliver performance. As such, an organisation is “ a social entity that is goal-oriented, designed as intentionally structured and coordinated activities arrangement; and linked to the external environment (Daft, 2007). ” Having defined an organisation, organisational design is next.
Organisation design is the manner in which an organisation attains the right combination of integration and differentiation of its operations in response to the degree of uncertainty in the environment. The differentiation is the subdivision of departmental units or functions each of them concentrating on a particular aspect of the operations of the organisation. Integration is linking the different units or functions in order to achieve a unity of purpose and effort in working towards the same goals of the organisation.
As the environment is uncertain, an organisation achieves greater effectiveness through high integration and differentiation (when there is high uncertainty) or low integration and low differentiation are more effective (when there is low uncertainty). Notably, organisation design is not only about mapping out an organisational structure but also how an organisation is aligned with all other aspects, processes, functions, activities and strategies within the business.
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