Task 1 :
1a : For both organizations sampled in your investigation , compare and contrast CYC Pte Ltd and Haw Pte Ltd different organizational structures and culture.
1b : Analyze the relationship between an organization’s structures and cultures as well as the effect on their business performance
Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks.
Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy.
Organizational structure of Company Haw Pte, Ltd is a customer/market organization. The company structure is divided in a way where the personnel can be proficient in meeting the needs of their different customers. They have the following divisions:
Healthcare Division – Hospitals and Primary Care
Healthcare Division – Consumer Retailing
Sport and Fitness Division
Cosmetics and Beauty Division
Within each division , there are departments for Accounts , Production , Marketing and Personnel.
The business has a formal structure with departments (Sales , Personnel , Accounts , production , planning , drivers and store) with Jack the owner in control of all levels of the business. Hence CYC Pte, Ltd. has the typical hierarchical organizational structure. A hierarchical organization is an organizational structure where every entity in the organization, except one, is subordinates to a single other entity.
Each of the companies realizes that there has to be change in order to accommodate the changing needs of their industries. The organization structure which CYC Pte Ltd needs to adopt is possibly a matrix structure. A matrix structure is the combination of two or more different structures. In the case of CYC Pte Ltd. There will not have to be any duplicating of functions. The different departments will cross-work with each thus sharing expertise whilst maintaining functional departments. For Haw Pte Ltd. Perhaps adopting a new work philosophy such as Kaizen management would be advantageous to the company. With this, the organization will not have to change, simply the management style will have to do the changing. In Kaizen management, all tiers of the company will be involved with helping promote changes. With this method the company can easily cope with the erratic changes in their industry.
The organizational structure of CYC Pte Ltd is a rigid one. This organizational structure worked when change was still slow. But now, the world is no longer so predictable and solutions are not so obvious. These rigid, old structures are no longer sufficient for the new complex challenges facing organizations nowadays. CYC Pte Ltd has recognized changes in their industry and with the new ‘boss’ stepping in soon, there has been recognition of the need for adapting to these new situations that are facing the company.
For Haw Pte Ltd, the existing organizational structure works well for the company. The new managing director realizes that the company needs to address the issues they face when there is a sudden change in their industry. For this, it would be easier to adopt a new managerial approach. Kaizen seems to be a good option for this company because the company culture encourages the employees to be innovative. Kaizen encourages this in that every employee is encouraged to contribute to suggestions for positive change within the company and to the issues facing their departments and even their selves.
Both companies’ employees would benefit from training. This will help the staff learn about the new methods being instilled and how it will benefit their bottom lines. With a well trained staff, inadequacies will be overcome and the targets set will be attained. Change is the only constant in today’s world. Companies need to catch up and change along with these changes. It is an each to their own solution.
References:
Awati, Kailash. Project management in the post-bureaucratic organisation. Retrieved 8 June, 2011 from http://eight2late.wordpress.com/2009/11/06/project-management-in-the-post-bureaucratic-organisation/
Organizational Structure. Reference for Business. Retrieved 8 June, 2011 from http://www.referenceforbusiness.com/management/Ob-Or/Organizational-Structure.html
Credit:ivythesis.typepad.com
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