Question

12

1. Maryanne coordinates the activities of TeamCo’s individual units and offers support services to the help the managers reach their performance goals. What type of organisational design does TeamCo use to manage their individual units? Explain in detail.

2. Many organisational design concepts are not applicable to 21st century companies. Give your opinion.

3. An organic organisation would likely be very flexible. Why?

Answer 1

1. Maryanne coordinating the activities of TeamCo's individual units and offers support services to the help of managers reach their performance goals is based on the functional organisational structure or team based structure where individual units are supported by management. The functional organisational design has employees grouped into functional units as per similar skills and functions and the management acts to coordinate between the teams. Team based structure is a less hierarchical and flexible structure with employees grouped into teams based on a project or skills to complete a goal or task or work for a client. The management controls the team based structure by defining the goals and offering support for performance.

2. Organisational design concepts which have more hierarchy, bureaucracy and layers. It makes the structure of the organisation complex and increases the size of the organisation. Such organisations are unable to function inefficiently and lead to increase in costs. Organisational designs for 21st century need to be more flexible, lean and flat structures to enable communication, coordination, cost effectiveness and dynamism to manage different roles and responsibilities. It is important to focus on knowledge management than exercising control through reporting and hierarchy. The use of technology has made it possible for information to be accessed at various levels and more accurate reporting and management .

3. Organic organisation are likely to be very flexible as the organisations are more decentralised and their is participation in decision making by employees at different levels. The knowledge is fluid as information is exchanged more freely and specialisations are developed as per business needs. The organisations are more adaptable to the changes in the external environment and do not have a defined structure as they are open organisations.