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It is one of the contemporary designs which is like that the organizations have only team base work assignments and follow it as to fulfill the organizational goals efficiently and effectively.
The good thing about this structure is that it can achieve the goal with in the required period of time and more over it help to motivate the employers. And the only disadvantage is that there will be a problem in reporting as the chain of command will not be clearly defined in the organization as it is a team structure (RH Chenhall 2003 )
It is a structure that is project base means they assigns different projects to employees to do and as soon as they are done with their projects they move to another one but they are specialists in those areas which they are working in. advantages of this structure is that it is very flexible and can change with the environmental changes like as they using different people for different tasks they can work with in different situations and the disadvantage is that it is really difficult to find the right person for the right job like tasks and projects more over one can come up with conflicts while working with in for the projects (EW Larson 1989)
The Boundary less Structure:
As the name itself indicates that it has no boundaries, boundaries in a sense that organizations which are into e-business that is which are web based organizations. The positive factors in this kind of organizational structure is that it is highly reactive to the queries they are into more over they can solve problems related to their customers it will be highly flexible and encore low cost more over they can change with the environmental changes and customers will easily access them from their homes, more over it has some disadvantages like they should have proper securities setups for payments and all, and it's sometimes hard to control situations and to communicate the right problem so communication difficulties are there in boundary less structure (R Leifer 1977).
Today's Organizational Design Challenges
Keeping Employees Connected:
In today's world the organizations are increasing rapidly and having large number of operations that required good and highly control able organizational structure, now a days the structures are so complex that it is sometimes hard to keep a record of having a span of control within the organization so it is one of the important factor to keep your employee connected and working to meet the organizational goals and targets efficiently and effectively (R Galliers 2003).
Building learning Organization:
It is one of the core factor to make your organization the best in the sense that the employee who come to work in your organization should learn something new like they should have some workshops and training sessions for them just to cope up with the environmental changes and it helps organizational to be stable and too work for long term profits and benefits with fulfilling their goals and targets efficiently and effectively (DA Garvin 1985)
Key features of different factors which affect change in organizational structure in the current economic climate
The social and cultural factors prominently affect the change in the organizations, corporations should remain productive and lucrative as possible as they can. The recent economic situation is greatly affecting the purchasing power of the consumers and rapid change in the buying behavior of consumers that changes accordingly change in their lifestyle. The enormous changes took place in social and in culture and most of the consumers running towards the healthier products (AA Armenakis, SG Harris 1993).
Unilever is one of the best examples of these changes:
Unilever has good understood of society and their market globally and locally. They try to cope with the changes occur in the products like many of the people have different product needs such as slimming food, nutritional food, carbohydrate free food, and many other changes which takes place due the rapid change in consumer lifestyle. Unilever take care of its society and also involve in the societal benefits through its different products according to the society need.
As Unilever manipulates in developed and in developing countries extensively where the political circumstances in different countries is sustainable that revitalize more investments. The legislation of these countries also supporting free market economy, and have little governmental intervention.
Most of the economic condition is not sustainable in the recent time because recession is greatly taking its position in many countries. The European market has been shifted to a single market therefore; it is growing rapidly the market for Unilever products. In many regions the inflation rates has been immutable hence not even contriving the prices of its products or any subsequent investment.
Unilever is consistently moving with the technology, and giving quality product. Their objective is not only maximizing the profits but they are greatly anticipating their customers with loyalty, trust, good response, and content changes according to the consumer lifestyle.
Unilever is leading in multifarious food products such as culinary category, soups, packet tea, spreads, margarine, ice cream, olive oil, home care products for example cleansing, hygiene products, and frozen food in Europe. They are famous for best seller of various brands. Unilever has the ability to modify products according to the consumer demands. They have the good understanding of its diverse market and they are consistently engage in innovation of the products for each of the market segment. They have the kind of culture that they also listening to the consumer demands and catering them in an efficient manner. Unilever is also focusing on social responsibility to shareholders and their employees. They are constantly growing and concentrating on the core brand. They are also demonstrating the power of rapid growth in Italy and Britain. Their market shares are successfully increasing in Africa, Middle East, and Turkey. They are giving their best on the large range of brand by considering variations in its consumers.
Unilever is facing decrease in the revenues due to the strong competition. Their store brands is increasing which is threat for the company, and the business climate is getting tougher as Marks & Spencer, and Sainsbury also started high quality of eatable items. Changes in the external environmental also may present threats to the firm closely related to the government variation and their policies at which they directly targeted to the taxes because it is the major revenue generator for the country not for the company, which may effect on to their small markets and hopelessly of geographic market and their targeted consumer may change their taste and way of using it. Increasing trade barriers, variation on foreign currency also differ, and evolution of substitute products. Their customer is losing confidence and trust in their products and most of the consumers switching to reduced-fat product. Retailers are also failing to make sales by not stocking enough stock.
Unilever one of the weakness is reduction in the R& D budget, their incompetency to maximize remuneration, and the inefficient management of products. Absence of certain strength in the company viewed as a weakness. Their high cost structure affects due to the import of raw material, advance technology, and which also create frequent fluctuation in foreign current. They are recently facing weak distribution channels in some countries which cause low customer retention and their inefficient management giving unsatisfactory services which have direct impact on effectiveness and unavailability of products. Unilever is facing decline demand from America. The reputed perfume, frozen food and other products is not performing up to the mark while the benchmark target is 5%. Decline in sales is due to the inflation. The organizational structure is not suitable for them. They are also facing competition from Marks & Spencer, and Sainsbury also started high quality of eatable items.
They are also focusing on the research and development in order to meet the requirements, the advance technology, and effortlessly introducing modified products so that is how their stakeholders will also satisfy.
WHY BUREAUCRATIC ORGANIZATIONAL STRUTURE IS NO LONGER IMPLEMENTED:
Bureaucratic organizational structure is no longer undertaking by any organization. The new approach that is decentralization is mostly adoptable and flexible for most of the organization now-a-days. Many of the organizations involve in the partnership, mergers, and non- governmental organization which involve diversity and lead the corporations towards the decentralization (RB Denhardt 2000)
Reasons for individuals and organizations tend to resist change:
Our whole society in turning with the change they are facing that is very natural for any individual and organization which move with the variability whether it is the external change or internal change. We are moving toward the unhealthy spending. The common list will be implemented to the common situations.
When the objective is not clear the change will takes place. When there is no defining purpose of the organization there will be anxiety creates within an organization and the corporation will lead downward. It always create confusion and unrest situation. When there is a desire or passion to work for honor the organization will not face any unusual circumstances but in case of any variability in the organization their determination will lead them towards accomplishing their objectives. Organization should make its management feel that how much they respect its most important assets that is people working in the organization. The resistance to variation when there is no specific content of behavior in the organization. The organization should make standards and keep in mind its norm and morale of the workers in the organization. When there is clumsy process the people get confuse and their productivity lead them towards fatigue (MT Hannan 1984).
Organizational structure is essentials of any organization like it is the basic design of any organization, performance of employee, satisfaction, experiences, work tasks and jobs individual personality and differences, individual are more attracted or likes to stay with organizations which attracts their personality more. Organizational structure is the one which matter most in organization as it clarifies who has to be placed where and what duties must be done by him or her in the organization and how the goals will be met efficiently and effectively, in this whole report we studied many organizational structures and how they are implemented in all organizations and what similarities they have more over what are the differences between them which organizational structure is mostly used and which organizational structure is now not in use what are the reasons behind it. The main idea of this report is to analytically examine the organizational structure and more over to know how an organization works. Organizational structure is the main idea of how the organization works like it truly depicts the image of any organization, its norm and values, and whether they are followed or not.
As today's world is moving very rapidly and to control it the organizations have to change with the environmental changes and as simple the organizational structure is the change can be meet easily and the complex the organizational structure is the changes will be more complex. Organizational structure helps a lot ion motivating, guiding the employees to achieve the goals and targets with in the required time limit, efficiently and effectively. The organizational structure helps a lot in critically analyses of any corporation, its target, and objectives, as organizational structure also shows that it more over tells that whether the organization is formal or informal. Why Weber's Bureaucratic organizational structure is no longer in use why organizations are moving towards decentralization. Organizational structure are barely ever, if ever completely normal. They reflect not only objectives factors such as the entity's atmosphere, mission, size, resources, and technology, but also the knowledge and preferences of the entity's leaders and the compromises through which internal power struggles have been resolved. Organizational structure more over helps a lot in motivating employees as if the chain of command and unity of command exists in the organization as they will be knowing who to report and when to report, organizations having not clearly defined structures suffer a lot regarding who to report and who is the person we are working for. After doing this report I believe that organizational structure matters a lot in any organization as it is the main key to any organization and how it is working and achieving its goals efficiently and effectively. More over organizations should build up a good organizational structure which should be simple and easy to follow as it would be more profit generating and completing the tasks with in the required given time.