How can a firm decide what type of organizational structure is best suited for i

Question

How can a firm decide what type of organizational structure is best suited for its strategic needs?

While most companies use a variation of the functional structure, it's up to you to figure out which structure best fits your company. You can also mix and match the best parts of each to create a customized structure. company's organizational structure. This should be decided according to your company's size, industry and aims. You should think of organizational structures as communication flowcharts. Poorly conceived organizational structures will result in sluggish, inefficient communication in which managers at various levels are required to deliver information to too many people for too many levels of approval. Well designed organizational structures will produce efficient communication channels and encourage fast, clean decisions.

How can a poor choice of organizational structure negatively impact an organization?

Lack of Strategic Management- To maximize your growth potential, you’ll need to make plans for the future that create opportunities, rather than simply wait for new business. Without an organizational structure that puts key executives or employees together on a regular basis, it will be difficult to create effective long-term strategies. Strategic management includes creating growth through objectives such as introducing new products, using new distribution channels, expanding geographically or going after a new target market. These strategies often require input from your marketing, accounting, information technology, production and sales managers.

Reduced Productivity- One can miss opportunities if organization isn’t set up to create effective communications or doesn’t foster creative strategic management. It allow problems to continue and reduce employee morale. An employee who has two superiors might get conflicting directions and not want to follow either until she gets approval from higher up. When employees aren’t happy, they might not volunteer new ideas or might leave for a better job. Poor organizational structure can lead to a reduction in productivity, decreasing your growth potential. For example, when sales people don’t communicate with production managers about large orders they know will be coming in the months ahead, the production department can’t make the most effective scheduling plans, leading to a lack of production capacity, labor availability, warehouse storage space and shipping efficiencies.

Damaged Company-In addition to the external frustration firm can experience with a poor organizational structure, firm can create problems for your customers when they don’t get timely answers to their questions, receive poor customer service or have to wait longer than normal for delivery of product. When this happens, you might lose customers, lose references and the ability to attract new customers and reduce revenues enough to damage your business. Once you start missing payroll, can’t repair equipment and machinery or start racking up a credit card, you create a downward spiral that’s hard to turn around.

Describe potential challenges firms might encounter when using virtual structures that include team members from countries around the world

Explanation / Answer

How can a firm decide what type of organizational structure is best suited for its strategic needs? How can a poor choice of organizational structure negatively impact an organization? Describe potential challenges firms might encounter when using virtual structures that include team members from countries around the world.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.