Over the years businesses have been following different organizational structures depending on Which sector the business belongs to. As the business reaches the maturity stage it plans for expansion. New advancement in technology and increased competition has led businesses to expand their operation cycle and change their organizational structures. Business expansion does not only mean acquiring more capital or expanding the entire existing premises but the most important factor that current businesses are likely to focus on during expansion is the human resource. Human resource, how ever plays an integral role in any business organization. It refers to the number of people working within the organization. To deal with the employees a human resource department is held responsible which establishes,develops,maintain and communicate office policies throughout the entire company, not only this but it also represent,help,advice and consult with the employees while simultaneously keeping overall interest of the company in mind. It ensures that the workforce is utilized in the most productive manner, moreover taking charge of employees motivational levels. Business expansion leads to many changes within the organization, such as change in structure. A business might have followed a flat organizational structure with a few levels of hierarchy, chain of command and short span of control. Moving towards a tall organizational structure, involves large number of hierarchy which has led to ineffective communication between the upper and lower level of management. Behavioral problems are likely to occur when the organizations are designed in an inappropriate manner leading to decision-making system being undermined. employees are neglected and the feeling of being committed to work is reduced. Commuincation breakdowns has led to distortion of messages that are sent from higher level of management to the lower level of management. Businesses operating under tall organizational structure are likely to have a narrow span of control. This would involve greater supervision and control over sub-ordinates. Here the managers do not feel the need to delegate authority .Excess supervision and control of management will result in employees being demotivated.At the same time a change from a narrow to a wider span of control leads to a greater degree of delegation. Workers motivational level increases as they feel they are being trusted to perform well. Less direct control over each worker means they are now able to take more decisions themselves. Large organizations usually follow a centralized system, meaning keeping all the important decisions making powers with head office or the centre of the organization. In this situation workers are less likely to be motivated because they feel they are not consulted in decision making. Workers are given responsibility but without authority which might even create a sense of inferiority among workers. They feel they are not important to the organization. However, a decentralized system allows more local decisions to be made with different conditions. The sub-ordinates prepare themselves for more challenging roles. It encourages empowerment. Effective delegation would motivate employees towards work, hence raising their motivational levels. More quicker and flexible the decision making process is likely to be. How ever in many cases, at the initial stage of organizational change work force is not ready to accept the change, thus resulting in loss of productivity. Workers are highly demotivated and the expected output is not generated by the firm. It has been argued that the structure of an organization is an indispensable means and an inappropriate structure will definitely affect business performance and this might even destroy it.Drucker(1988}. In today's fast changing world it has become increasingly important for the business to adopt new changes. This involves coming up with new ideas, strategies, schemes, promotional activities, training programs, products and services. investment in new technology is one of the sources through which organization can effectively respond to competition and market changes. New and advanced methods, tools, machinery and equipments will enable business to produce efficiently i.e. using minimum output and producing maximum output. It has been estimates that firms that are investing in new technology are spending 90% of their resources on technology and investing just 10% in man power planning that includes recruiting, training and educating workforce. David and martin (1992}.Investment in technology has never been easier for the business. Any change in an organization will simultaneously bring about other changes such as change in business policies, employees motivational level, organizational structure e.t.c.One of the major problem that management is concerned about when implementing new technology is the attitude and the response of the trade unions. Many companies need to put their entire effort to get this change approved by the employees association but often despite their tremendous efforts a successful change is not always guaranteed. Due to this uncertainty employees are discouraged to join a trade union because these unions are not in favor of technological change. They feel it's against the employee's welfare as workers fear about job displacement and job security. They want to be respected and treated fairly in areas such as benefits, pay and job security. They feel that by adopting new technology the need for their skills is reduced or even eliminated. Once technology is adopted workers will press for higher wages as they feel that changing technology is itself insufficient to justify higher pay. Fail to bargain will demotivate the workforce which might cause industrial actions such as strikes, lockouts e.t.c. While looking at the other side of the picture, technology that is helping employees to work faster with minimum effort will motivate them towards work and acceptance of this new technology would be easier for both business and employees. An expectation of generating high profits in future will encourage workforce to work harder and get more committed to their work.
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Greater profits induce business to pay bonuses, commissions, profit sharing and fringe benefits to its employees, thus motivating them. Recognization of trade unions seem to become increasingly important in today's era. In large organizations employees prefer to establish trade union powers in order to protect their rights and represent their interest. In modern capitalistic societies trade unions are the principal institution of workers. (Richard B. Freeman and James L. Medoff}. The need to have a trade union mainly arises in the manufacturing sector which is vulnerable to market changes. Workers need to be flexible to adopt new changes. There might be conflicts between managers and employees. Managers always try to maximize their profits by keeping labor cost low. In the absence of trade union there may be a clash of interest between workforce and management and collective bargaining would not be possible. Workers are not able to negotiate over pay and working conditions on large scale and on a national level with the national employer's association such as through "engineering employer's federation." Employees get highly demotivated if their needs and expectations to the organization are not met. On the other hand, are those researchers who have judged unions as being a negative force in the society. Organizations where employees are forced to be a part of the union are bound to pay an annual fee which is sometimes deducted directly from their incomes. Many prefer to be treated as individuals rather than a member of a representative. This would enable personal dealing and sharing problems with the manager. Employees that are motivated and committed to work are much concerned about their productivity. Collective industrial actions would result in loss of productivity and sales, thus destroying the motivational levels. Employees prefer smooth running of the industry without intervention of trade unions. Management roles still maintain many of the conventional functions they always have but in today's business atmosphere, they must also understand how to adapt and function within the organization. Organizations that have long term planning are less likely to change their policies. Internal policies remain consistent throughout the year. Decision regarding payment systems is one of the major policies that affect employees, whether to offer them piece rate or a time rate. A piece rate system to pay wages encourages employees to produce high output levels. According to the theorist F.W.tylor pay should be linked with the level of out put that means a fair days pay for a fair day's work, but at the same time workers may target a particular earning level and may not be motivated above that level as their target for earning has been achieved. Workers mat not be ready to accept changes as it may change the nature of the work resulting in loss of pay. Introduction of team working within the organization leads to more flexible working. This may seem more attractive to the workforce as their workload is shared among existing employees. New ideas are generated and there is a pool of knowledge leading to greater productivity. Workers can handle complex situations but problems of demotivation can still arise. There might be a conflict of interest between workers. They come to rely on each other and one expects other to do the task for him. Being dependant on one another results in loss of productivity. Workers may not prefer to work closely together and may enjoy individual working. Large companies usually adopt an autocratic style of leader ship which involves authoritarian manager making all the decisions.