Organization Division Structure

Turning Around an Organization

Introduction

A large amount of research work is done on organizational turnaround process in various sectors. In fact, turnaround proves to be an essential alternative for organizations facing survival-threatening performance decline. (Ramaswamy & Namakumari, 2002)

In order to study the actual situation of the division, it will be essential to analyze the fundamental problems inherent in the organizational structure as well as the potential hindrances. (Kazmi, 2002) Subsequently, my vision will be to turn this division to a stage where it is perceived as a benchmark for the others. Thus, to turn my vision into reality, I will emphasize strongly on new structure of the division, minimum hierarchical levels, flexible operations and goal-oriented approach.

Firstly, it will be essential to interact with the people working in the division. In order to make the optimum utilization of the experience of the employees, I will try to lift their morale and reinforce the confidence in their own abilities. Simultaneously, I will ensure that all types of communication barriers are eliminated and a high level of intra-divisional autonomy is maintained. Such kind of communication network will be facilitated through memos, mails, letters, intranet, face-to-face meetings, telephones, etc.

In order to realign the various tasks & processes, I will meet with the responsible individuals and invite their inputs in the process. All kind of existing redundancies will be eliminated and redesigning will be done from the basic level. I will also encourage these individuals to develop an understanding among each other and share common values framed for the division.

Steps for managing the transition:

A. Fundamental Analysis-

Locating the strengths & weaknesses of the division.

Understanding the basic issues related with organizational design & strategy.

B. Working upon the new organization design-

Design Criteria: Utilizing the information from the fundamental analysis for developing a criterion for new design (Strategic Organizational Design, 2008).

Grouping: Developing new design alternatives and evaluating against the criteria set for product, work-process and market segment.

Linking: Assessing the information flow & evaluation requirements.

Impact Analysis: Determining the viability of each alternative.

C. Operational Design-

Adequate research work is done for implementing the organizational design.

New work charters, reporting relationships & information flows are required.

D. Implementation-

Framing a strategy for implementing the design.

Determining the best alternative to manage the transition process.

New Policies:

Amendments in the Product-line: Initially, the reasons for the poor performance of the products will be determined on the basis of market research. This responsibility will be allocated to all the divisional heads and simultaneously, they will be asked to submit their recommendations for resolving the issues at the earliest time. It will be ensured that the employees remain informed throughout.

Alignment within the Division: In order to introduce changes in the structure of the division, I will not try to implement these changes in a drastic and inappropriate manner. Any kind of modifications will be made only after conducting an in-depth research on its effectiveness and potential implications on the division. In fact, the entire turn-around exercise will have its roots in the existing structure and the amendments will me made only to overcome its flaws.

Arrangements for Finance: In order to arrange adequate funds for this turn-around exercise, I will negotiate with the Board of Directors about the prospects of the division, as a result of this turn around process. I will present my views on the basis of the problems discovered through the research, expectations of the market and the recommendations for the improvement (Designing Organization Structure, 2008).

Conclusion

Hence, by implementing these ideas and strategies, a turn around exercise will be undertaken in the division. However, the ultimate success of this plan will be determined by the organization's profitability in the coming years.

References

Kazmi, A. (2002). Business Policy and Strategic Management. Delhi: Tata McGraw-Hill Publishing Company Limited.

Ramaswamy, V.S. & Namakumari, S. (2002). Strategic Planning. Delhi: Macmillan India Ltd.

Designing Organization Structure. 2008. Retrieved May 17, 2008, from http://www.qm2.org/mbriefs/43.html .

Strategic Organizational Design. 2008. Retrieved May 17, 2008, from http://training.byu.edu/documents/StrategicOrganizationDesign.doc .

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