Key Aspects of Structure in Fives: Designing Effective Organizations - Book Report/Review Example

Mintzberg, H. (1992). Structure in fives: designing effective organizations. New Jersey: Prentice-Hall. The book “Structure in fives: designing effective organizations” shows a diagram on page 18, which indicates members and units of the sections of a manufacturing firm. The other diagram on page 22 indicates a combined overlay of how an organization functions. When these two diagrams are combined, a clear flow of the organizational structure is seen from one section of the firm to the other. The diagram in page 22 is a clear indication of a techno structure that brings out the positions that are held by everyone in the organization. The type of structure obtained varies with every organization. There are those that are pyramidal and some that are elliptical. Every organization has the top managers and employees who are entitled to the basic works thus holding the whole system together. The diagram in page 22 strictly shows the how the organization function in accordance to the specific department that exist in the organization. The co-existence of the sections therein is so crucial, and the diagram play a major role in showing how labor is distributed from the top managers, who are the board of directors, to the support staff. One way that an organization may overlay its strategies down the hierarchy is through the system of formal authority. This system is somewhat a map that only shows how information flows from the top managers to the foreman or from the purchasing agents to the shippers. However, it does not inform us on the specific activity that takes place in every section. At a glance, one may know the positions that exist in an organization and the manner in which authority flows in the organization. The system of regulated flows is as well incorporated in the operations of the organization. The flow of production is well broken down from the administrative hierarchy to control the centre of operations. Another flow of communication within the organization is the informal communication system which has the role of laying emphasis on the coordination process amount the employees in the various departments. The communication layout among the employees in the organization is very essential. Through communication, the operations within the organization beginning from the top managers to suppliers and the shipping department will be smoothly run without encountering barriers that may cripple the efforts made. There are sections within the organization that do not need official attention and thus such sections only gain access to the unofficial communications posed to them. From the diagram, it can be clearly seen that the arrows move from one part to the other without a clearly defined path. This is a clear indication that the informal communication does not take a specific path to its destination. The information relayed may by-pass one department to the other, but the message would still be relevant and fruitful in the end. The organizational structure depicted above may be attributed to the Waterstones Company. The flow of operations in this company takes the different systems discussed therein within the organization. It follows the traditional hierarchy of the organizational structure, which consist of Board of directors, Chief operations officer, departmental heads and employees. Waterstones is the largest book retailer in the UK and Ireland. Recommendations and Implementations 1. Implement a well defined Hierarchy. The top manager will oversee all the operations of the organization. 2. Every department should be managed by a skilled and knowledgeable individual. The departmental heads will oversee the operations within their own department and ensure that what is delivered is up to the standards required by the board of directors. 3. Layout a channel for communication. Since communication is an essential tool in passing of information, the entire organization has to speak a common language that is understood by everyone. Through this, flow of information within the organization will be done in a smooth way that would see the operations carried out in a smooth manner, as well. 4. All departments should be strategically positioned. The various departments that exist in the organization should be grouped in a way that those that can co-exist are position in the place. This would as well reduce the time spent in moving from one department to the other thus saving time for more production. 5. Identify the structure that best fits the organization. Settle on the structure that brings success to the organization, that which has no obstacles. 6. Establish the factors that would contribute to the success of the organization. This may assist the top managers who are responsible for the implementation to first note the strengths and weaknesses of the company. Areas that need to be made better should be given the first priority when the amendments are made. 7. Eliminate the barriers in the flow of operations. The obstacles needs to be done away with before a proper channel of operations is chosen. This will ensure that there is a smooth flow of information from the board of directors to the operation core. 8. Accord every section with its rightful responsibility. Every department should specialize in their line of duty so that they can maximize their output thus putting the company ahead of the competitive market. A Conceptual Discussion on Centralization and Decentralization Issues In every business, there is a manner is which business is carried out. Structuring the organization makes it quite simple to in managing its operations. Small companies often have the mandate of creating their own organizational structure that is in agreement with the owner’s personality, characteristics and style of management. There are two known ways of structuring the organization; namely centralization and decentralization. Both of these organizational structures have limitations and advantages. For a centralized structure, the business is solely dependable on one individual who’s responsible for making decisions for the entire company. The junior staffs are all entitled do the decisions made by the junior staff. This type of structure is mainly used by small businesses that are run by an individual. The owner, in this case, delegates responsibilities directly to the employees. For instance, when one buys a machine from company A and waits for delivery to be done in a few days. Upon the delivery of the machine, the buyer finds out that the machines lacks a certain software for it to function in the right manner, therefore, rendering the machine faulty. The buyer decides to return the machine to the company. Unfortunately, he finds a junior worker who tells him that he neither has the authority to issue a refund nor an exchange for another better machine. That can only be done by the owner of the business who is out of the country. On the other hand, a decentralized structure is made in a way that the employees have a common say on the decisions made in the organization as the owner. What is depicted here is that, the owner bestows every junior staff with the mandate of being a manager at their own capacities. For instance, the owner of company B has authorized the employees to issue an exchange of any machine with a value of up to $5,000 plus those damaged during shipping. Consequently, if one had placed an order with this company, he would be able to exchange the damaged machine with a new on the moment he presents it at the company’s store. A centralized organization is so effective when it comes to decision making. This is so because the owner of the company has the sole mandate of coming up with the missions and the visions of the company. The objectives are as well set by the owner so that employees can follow so as to achieve the set goals. This type of organizational structure requires senior staffs that are highly knowledgeable in terms of the company’s operations. The implementation of the strategies set by the company also depends on the decision of the top managers. However, a centralized business structure may have certain limitations that may see the business having difficulties in carrying out its normal operations that could lead to a fruitful result. The many stages of bureaucracy associated with such type of structure may affect the business negatively in a number of ways. Being that the decision maker of the company is bestowed on the top manager, business operations may at times be sluggish when decisions are made by one or few people at the top. However, for a decentralized organization, which requires the authority of business operations is given to every employee, such businesses may face difficulties in trying to get every employee on the same level when its making decisions for the company. Therefore, the business owners need to research on the best business structure for their business. For instance, for a small business, the centralized structure would be the best. It would not be suitable for larger organizations since big companies are divided by in to departments. This calls for proper implementation for every business such that as the business grows and develops the owner should choose on the suitable organizational structure. Mintzberg, H. (1992). Structure in fives: designing effective organizations. New Jersey: Prentice-Hall. When trying to relate chapter six of the book “Structure in fives: designing effective organizations” to the various organization that greatly focus on the structure of their organization, the design adopted ought to fit the situations therein. Coca Cola Company, being a manufacturing firm has the mandate of knowing the kind of organization it has so that it may adopt the design that best fits it. In order for the Coca Cola management to prosper in their business, being that they are a global company, they need to know the age of their company in their various outlets in the world. Thereafter, they determine the size of their company in the country in which the branch company is hosted. They type of technology used in producing the drinks and the containers also need to be taken into consideration during the designing process. The business environment also comes into play as far as the market completion is concerned; being that Pepsi is their biggest competitor. The complexity in the manufacturing process, as well as the hostility of the hosting country, may numb the process of fitting a structural design to the situation at hand. The structure that the Coca Cola Company has adopted seems to be high since their level of performance is very high. Being that Coca Cola is somewhat an old Company, this gives the top managers an easy task in determining the best structure for it due to the many years it has in business. The company is as well a large one thus; this makes it easy to elaborate a structure that is more specialized to tasks and administratively developed. Recommendations and Implementations 1. Determine the age of the organization Age is a major contributor in determining the structure of an organization. Do the math and determine how old the organization has been in existence and determine the stage it has attained its operations. 2. Determine the size of the organization Proper knowledge of the size of the organization will provide a room for pre-empting the kind of structure to be used. 3. Envision the business Environment. Find out where the business is placed in the market, and then strategize on the modalities of being the best in the entire industry. 4. Determine if the adopted structure is effective An effective structure will make the flow of operation easy to maneuver. 5. Communicate the right flow of information to the employees Decisions made in the organization should be understood by everyone. This may be fostered by training that is conducted in the organization via seminars and meetings. 6. Make known to everyone the responsibilities of the managers through departmental hierarchy flow charts. 7. Form task groups that would be responsible for specific issues within the organization. Read More