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1.1 The type of the organisation:
An organization is a social arrangement which pursues common goals, controls its own performance, and has a boundary separating it from its environment(). Heart to Heart foundation established as a non government organization and transferred into a profit-generating public health organization with its National central based on Beijing and 5 separate field office located in other areas of china.
1.2 The organisation's mission & stakeholders
Mission is the purpose of the organization which guides strategies and decision making of the organisation. Heart to Heart foundation stated its mission as to help migrant children with heart defect get heart operations free of charge. "Stakeholders are defined as individuals or groups who have interest in as well as affected by the goals, operations or activities of the organization" (Britton, 2006). The main stakeholders in heart to heart foundation are the migrant children with heart defect who benefit from the heart operations, volunteers, employees, donors, and community which provides financial support.
1.3 The system model of the organisation
Input, transformation and output are parts of a system model. In the case of Heart to Heart foundation, funds and supports from donors and volunteers, children with heart defects are stand for input, operations, process of recovery stands for transformation and ultimately come out healthy children and an achievement of public welfare as output.
While the foundation had been through significant restructuring to cut cost and survive the global recession during 2008, there remained some problems according to the research.
Low morale due to downsizing and restructuring activities after the global recession
Potential conflicts and misunderstand due to differences among organisational culture .
Absences of explicit long term and short term objectives.
Poor response to new opportunities and external changes.
Centralized form of decision making may lead to arbitrary judgment and inappropriate decision
This paper will provide an overview of heart to heart foundation, and evaluate the impact of changes to the organisational structure on the performances of the foundation, provide recommendations in terms of practical considerations relevant to OB themes to increase organisational effectiveness.
2. The impact of changes in structure on the performance of the organisations
2.1 The importance & purpose of structure.
Structure is a division of work and "who report to whom". (Mullins,2008). The first step of organizational change is to getting the structure right. (Heller,1997). Obviously, the structure is important for an organization. The reason is it will influence productivity, efficiency. (Mullins, 2008). If the structure of the organization isn't right, it will waste more resources and times which will lead to inefficiency. It also influenced by the motivation and job satisfaction. (Mullins,2008). Labour is an important factor to getting the organization's goal, it's necessary to make sure every member are participate the task through the proper motivation or awards. The purpose of structure is to dividing the task for different groups of members of the organization and let the groups cooperate to get the organization's goal. (Mullins, 2008).
2.2 Consequences of badly structure.
There are some negative consequences of bad structure, such as low motivation and morale, late and inappropriate decisions, conflict and lack of co-ordination, poor response to new opportunities and external change and rising costs.(Child,1993). The reasons of low motivation and morale are lack of clearness of the definition of the job, and sometimes the decision making is conflicting in an organization. (Child,1993). All these reasons will make the members in the organization feel confused of the job. Late and inappropriate decisions results from the members don't know enough information. (Child,1993). Poor cooperation of decision-maker will make the information to the right people late or wrong which will loss efficiency. Conflict and lack of co-ordination is because the goal of every people is different. (Child,1993). Lack of communication between each group and lack of clearness on objectives may make their goals conflict or cross. The reason of poor response to new opportunities and external change is the organization may lack of a special of making sure the new opportunity and changes. (Child,1993). It will affect the innovation and the plan of responding the changes, thereby loss efficiency of doing the job. Rising costs sometimes result from the long hierarchy of the authority, too many senior positions and some other problems of organizational problems. (Child,1993). Incorrect organizational structure will make some unnecessary procedures which will increase the cost by cost extra money for these procedures.
2.3 Determinants in designing structural
There are six types of principle used in design structure. The first one is centralization and decentralization. (Brooks,2009). Centralization means the top leader control all the decisions of the organization and the decentralization is the related member can make decision without the agreement of the top leader.(Brooks,2009). The heart to heart foundation uses the centralization for decision-making and decentralization for front line services like delivery. The second one is differentiation which discriminate different department and function of an organization it comprises horizontal differentiation and vertical differentiation. (Brooks,2009). Horizontal differentiation is the organization divided into specialism. (Brooks,2009).Thirdly, integration means although there are many different levels in an organization, sometimes they need to work together for a task. (Brooks,2009). It also includes the vertical integration and horizontal integration, vertical integration is about who report to whom which means how a organization running and vertical integration means the division of functions in an organization. (Brooks,2009). Fourthly, specialization is the division of the labour. (Brooks,2009). It can push the efficiency of the work but increase the human cost. Fifthly, formalization means the organization have written some rules and policies. (Brooks,2009). This can restrict the behaviour the employees. The final one is the span of control which shows the number of employees controlled directly by a leader. (Brooks,2009). It's easy to make a decision for this kind of structure because it doesn't need to go through too much hierarchy.
2.4 Other variables that can affect the structure.
Based on the contingency theory, the most effective way to structure an organisation should rely on the competitive environment, technology and size (Brooks, 2009).
Burns and Stalker (1961) say there are two kinds of external environments, and which are stable environment and turbulent environment (Dick & Ellis, 2006). In the stable environment, the most significant structure is bureaucratic structure (Dick & Ellis, 2006), which include functional structure and divisional structure. In turbulent environment, the most significant structure is flexible structure, which can be matrix structure (Dick & Ellis, 2006). The external environment for the Heart to Heart foundation is turbulent environment. For example, because of the changes of globalisation and technology, the foundation had to experience a serious reorganising after 2008. Therefore, based on the competitive environment, the Heart to Heart changed their structure into matrix structure.
The technology can affect the efficiency of the organisation (Woodward, 1980). The influences of technique for batch production are different from the mass production (Brooks, 2009). The structure for mass production should rely on bureaucratic principles (Brooks, 2009). The batch production needs a more flexible structure (Brooks, 2009).
Research by Ashton suggested the organisational structure should base on the size (Brooks, 2009). The large organisations should use bureaucratic structure, which means the hierarchy and regulations need to be established.
2.4 Various structures and analysis of new structure in heart to heart foundation
The main types of organisation structure include functional structure, divisional structure and matrix structure. Functional structure divided employees to do a specific set of jobs (Business Mate, 2010). For example, based on the functional structure, the heart to heart foundation can be divided into patient service function, material management function and medical function. The functional structure can leads to a greater specialisation and it is easier for manager to control (Brooks, 2009). However, the functional structure is more emphasis on subdivision than organisational goals (Brooks, 2009). Divisional structure divides the organisation with the same objectives (Brooks, 2009). For example, the organisation can be grouped by services, customers and geography. Because of the specific purpose of each division, the organisation growth can be increased (Brooks, 2009). Although, the divisional structure has many positive influences on the organisation, it still has limitations. For instance, the divisional structure can lead to resource waste (Brooks, 2009). Furthermore, the divisional structure can also cause a lack of communication between divisions (Brooks, 2009). In matrix structure means employees are managed by both departmental and project manager with a multiple control structure (Brooks, 2009). The advantages for matrix structure are that the communication in the organisation can be increased and the knowledge sharing can be supported (Brooks, 2009). However, because employees have two bosses, there would have more conflict and the stress in organisation (Brooks, 2010).
There are two new organisational structures introduced in the organisation, which are network structure and virtual organisation. In the network structure, some work could be finished outside the headquarters (Brooks, 2009). Because of the globalisation, outsource organisational functions can decrease the cost of the organisation (Brooks, 2009). The advantages for the network structure are that it can decrease the employment of the full-time workers, and the complicate internal system could be less. However, because of the outsourced activities, it could be difficult to control and can cause coordination problems. The virtual organisation is a small centre organisation, which major focus on the necessary functions and outsourcing of unnecessary functions (Brooks, 2009). Moreover, tasks can use computer network and communications technology in the virtual organisation (Brooks, 2009)
The new structure of the Heart to Heart foundation includes the three major structures. Because there are cross-functional staff teams in the organisation, therefore, therefore, the organisation could have different functional departments, and which can be identified as functional structure. Furthermore, the cross-functional staff teams can also be referred as matrix structure. In addition, the Heart to Heart foundation has five regional offices, which are divisional organisation by geography.
The flowing recommendations are intend to solve the problems as well as promote the effectiveness of organisation based on the overview of heart to heart foundation.
The Heart to Heart foundation need to motivate the staffs in the organization to increase the morale of workers. The organization cutting costs by downsizing the groups, therefore funding for the voluntary activities decreased, so volunteers were demotivated by restructuring activities. By improving the motivation of the staff can cutting the unnecessary costs and increase the morale of the labour. According to Herzberg, use the hygiene and motivator needs to motivate the staff, the staffs need to extrinsic rewards supervise everyone, and give various objectives for the different person, and making special plans for each staff (Herzberg, 1959). To improving the working environment to motivate staff, such as building up lounge cafeteria or providing child care for parents. The organization can set up a general management style to reward and punishment the staff, such as the position of the workers in the group is also a motivator for the intrinsic rewards (Herzberg, 1959). Staff have the rights to make decisions, can also motivate workers in the organization, the authoritarian management style decrease the morale of the staffs (McGregor, 1987). So in the Heart to Heart foundation use the various methods to motivate staff.
The Heart to Heart foundation need to improve communications and understanding among different regional cultures. Organisational culture is "collection of traditions, values, policies, beliefs, and attitudes that constitute a pervasive context for everything we do and think in an organization" (McLean& Marshall, 1993). According to siddall "international business , the issue of culture and the need for better understanding have become major parts of organisational behaviour" As the foundation set up more region offices as well as increase emphasis on marketing Cantonese, Mandarin and other international languages, the cooperation among the organizations with different regional cultures will be complex. Based on Hosfstede's study "the power of distance, uncertainty avoidance, masculinity and long-term or short-term orientation are different in various cultures." Therefore, It's important to improve communications among different regions so that there will be better understanding and cooperation among colleagues.
The heart to heart foundation needs an explicit statement to clarify its short term and long term objectives. Objectives set out more specifically the aims to be achieved and the desired end-results. Clearly defined and agreed objectives help facilities system of communication between different departments within an organisation, and provide more meaningful criteria for evaluating organisational performance (Mullins, 2008). A qualified objective should be specific, measurable, achievable, realistic and time bound (Mullins, 2008). A short term objective can be formed as to help 20 children in Beijing to get heart operations free of charge within one month while a long term objective can be help most migrant children in china to get heart operations free of charge within 10years. Meanwhile, according to Peter Drucker's framework upon setting management objectives which referred to the fallacy of single objective, objectives should be set in terms of 8 key areas to guarantee long-term survival and effectiveness of the organization.() Therefore, to guarantee the flow of funds within heart to heart foundation, Management should set objectives regarding the use, acquisition, and maintenance of capital and monetary resources.() Meanwhile, objectives can be set to standardize the desirable attitudes for employees to possess. In practice, heart to heart foundation can set a conduct which guide the motive and attitude of employees.Â Â Â Â Â Â Â Â
Adjustment should be taken to flatter the hierarchy composed by a short chain of command and wide span of control to give a quick response to external changes and opportunities, a chain of command establish the vertical graduation of authority and responsibility (Mullins, 2008). A short chain of command allows a more direct feedback and information flow of stakeholders and external environment from the operators to the ultimate decision maker. Hence, effective strategy and quick responses can be given to avoid potential risk and seize new opportunities. Span of control is the number of subordinates that report directly to a manager. Within s wide span of control, decision-making authority can be delegated to those who can most effectively and efficiently respond to environmental changes. Meanwhile, decisions can be made in time especially when confront with emergencies
Developing a democratic leadership style to avoid arbitrary judgment and inappropriate decision. The research on heart to heart foundation reflected a centralized form of decision making which exclude employees' authorities in decision making process. While, democratic leadership, the people have a more participatory role in the decision making process. The allowance of employees to share insight and ideas will generate a more comprehensive and innovative ideas. People are more likely to excel in their positions and develop more skills when they feel empowered, and people are empowered when they are involved in the decision-making process. it cannot consider very. The suggest for this company is l