Unit 4 - summary

Organization Structure

An organization’s structure is how it organizes itself to communicate, develop workflow, and outline the hierarchy of authority, which is often referred to as ”chain of command”. The chain of command is often depicted in an organization chart. There are a variety of organization structures, namely, simple, functional, divisional, matrix, and conglomerate. Whatever the structure, organizations adopt a structure to gets things done through others in an effective way to achieve corporate goals. It’s important that an organization chose the best structure for to accomplish their goal. In the case of Xerox Corporation, Xerox initially selected a matrix structure, but found it cumbersome to achieve its goals. Today, Xerox is structured into four strategic business units.

Communication

Communication is key to effecting change within an organization and promoting excellence in achieving its organizational goals. It encourages and motivates employees to perform well for the good of the organization. Organizations face challenges today that affect achieving those goals—new communication technologies, a diverse workforce, and a global marketplace. How well an organization overcomes these challenges will determine its business success. The success depends upon the effectiveness of communications from all persons within the organization—from the chief executive officer down to the employee on the shipping dock. This is illustrated below.




Organizational Structures

Environmental forces and technological factors influence an organization’s structure. It is a complex system that is also influenced by the organization’s strategic choices. There are a variety of structures that are adopted due to their unique strengths and weaknesses, although the traditional organization is structured by functions, products, or geographies. Managers need to think about adopting structures that address the complex business strategies that today’s global market entails, including e-business organizational structures.



Organizational Environment

Organizations cannot survive or grow without interacting with their environmental surroundings. The environment provides resources or raw materials to organizations, and receives output in return. Environments can be very different—unpredictable, highly diverse, and unstable. Organizations must cope with rapidly-changing markets and technologies. If an organization’s environment is uncertain, then it must be flexible and have the ability to adapt to changing markets or other environmental factors very quickly. For example, when the computer was introduced for business use, many firms quickly developed departments responsible for managing information services. To prevent environmental turbulence from impacting an organization’s core business, organizations develop buffer departments to deal with these interferences, such as Corporate Communications or Legal departments.


Organizational Technology

The business world has become a smaller place with the advent of organizational technology. Why? Technology is used to communicate with employees, to service clients or customers, and to disseminate training to employees and customers more rapidly and anywhere in the world. Organizational technology adds value creation—it increases an organization’s Return on Investment, although organizations currently communicate with employees and customers. Organizations become more flexible and responsive. Organizational technology:

Improves process—system efficiencies are developed versus improving individual efficiencies
Allows more customer intimacy, meaning there are more opportunities for cross selling, managing customer databases, and specific customers can be targeted for marketing purposes
Maximizes technology for developing new ideas