Turning a failing organization around is one of the most interesting activities in management. When organizations see themselves in that downward spiral, their managers may feel that they are unable to stop the pace of negative change. That worry and that downward momentum can be very powerful. At the same time, it sometimes takes only a key impetus to deflect that movement and turn things around.
Picture yourself as a new manager hired into a failing division in a company. The product line is outdated and losing market share, inter-departmental communication is adversarial, and competition for corporate funding is fierce. How are you, a new person, going to turn things around? Consider the following example, Symphonic Cooperation, from another "industry" below. The following article is an example of how one person, working in a very different type of workplace, turned around a company by making changes in its structure. Some of what was done may be food for thought in your very different work environment. As your first job as the new manager at the outdated, adversarial company, write a plan for changing its organizational structure, incorporating the following elements:
Your vision of the new organizational structure for your division including how you would realign individuals, tasks, processes and functions
Steps to manage the transition from the old organizational structure to the new
New policies that you would implement that should begin right away to facilitate the change to the new organizational structure
Discussion of Key concepts
Forces of Change in the organization:
Internal forces for change in the organization
Informality and networking i.e Informal organization structure
Change in key personnel, top management perception.
Cultural Influences of the employees
Resource audit i.e. physical, financial, human and intangibles of the organization
Analyzing core competence and value chain analysis and matching with the external environment
External Forces for change in the organization
Change in Market conditions, economic conditions
Political and legal environment
Societal and cultural environment
Quality of Human resource
Globalization due to Market convergence, cost advantages.
Organization structure and change
Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Organizational structure determines the role and responsibilities within the organization.
Purpose of organization structure
Organization structure is one of the key elements of the strategy implementation. Thus key objectives of it are:
• Building a capable organization
• Allocating ample resources to strategy-critical activities
• Establishing strategy supportive policies & procedures
• Instituting best practices & mechanisms for continuous improvement
Organizational structure depends on the product to be developed. Wheelwright and Clark define a continuum of organizational structures between two extremes, functional organizations and project organizations. Functional organizations are organized according to technological disciplines. Senior functional managers are responsible for allocating resources. The ...
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