Instructor: 11th March, 2013IntroductionOrganizational structure is the order in which authority is arranged from the management to the last employee from top to bottom. It is an order that determines the flow of information from the point of dissemination to the receivers. The passing of decisions also relies heavily on the structure of an organization. Therefore, a clear division of tasks emanates from such an arrangement so that everyone fulfils their assigned roles in any working set-up. Muthoni (2012) posits that the structure an organization adopts could be the key to their success in the goals that they set out to accomplish.
To be specific, when an organization does not have a clearly defined chain of command, there may be problems in the flow of information and mostly importantly, order. The design of an organization has everything to do with how the structure is allowed to work in harmony so that a common goal is achieved. It is the core of a system of structures that integrates them to give a result that is pleasant and desirable. This integration should be made in such a way as to reduce friction among the member structures and therefore reduce, as much as possible, chances that any of the constituted parts may bring down the whole system.
When the design is made as to reduce the flaws of each component of the whole system, the goals of an organization will always be met maximally. Organizational structure and design focuses on the aims of an organization to enable it reach the desired goal. The structures provide guidance to both the employees and the recipients of the products or services that the organization puts out.
When a concern arises among the employees or the customers of the organization, it is easier for the concern to be addressed as there is a clear order that is defined by structures on how any issue is dealt with. This way, order and efficiency come to play. This reduces the period taken in addressing concerns in the organization. Organizational Structures at Can Corporation and U-Shape Unlimited Can Corporation, which is a medium-sized company, is a light metal container manufacturer. Its factories includes three plants: the first deals in production of soft drink cans, the second tin paint containers and the last aluminium foil for baking and covering food containers.
It has a centralised head office with Finance, Human Resource Management and six support units and uses assembly line processes at each of the plant sites. On the assembly line, workers tend to be migrants and/or poorly educated. Each worker does one major task activity within the assembly line process. Overall, this work organisation seems inefficient but has relatively high employee turnover and has variable output quality due to worker inexperience.
Both of these have come to be expected by the management. High volume of output offsets variable quality. U-shape Unlimited is a smaller light metal container manufacturer that uses a mix of computer-based design, semi-automated robotics, and six work teams to produce a range of customised metal containers for clients. Each team each works more as a project team, and is assigned its own human resources and finance personnel as well as designing, costing, and producing (and even arranging for delivery) client-requested "shaped" containers.
While employee turnover is relatively low, projects at times fail to meet required deadlines and there appears to be inefficiencies in ordering and supply of raw materials. Similarly, management suspects that cost of labour for support specialists in accounting and human resources and logistics are larger than necessary – although in general all six teams produce acceptable profit levels.