Question

What is the Formal Structure of the Organization and how is the change of environment going to impact how work is organized and coordinated? Describe how this will look as an Organizational Design for the future. Please provide academic references and scholarly insight to support your suggestions.

Answer 1

The Formal Structure of the Organization is the building block of any organization and plays a very important role. Few of the roles played by the Formal Structure of Organization is the following:

• · Defines the authority and job roles of the authority.
• · Describe the workflow form different level of the hierarchy.
• · Provides a channel for coordination and communication.
• · Helps in identification of decision-makers, management authority, control and powers of the organization.
• · To limit and define the scope of work, responsibilities and duties towards the organizations and clients.

The most crucial factor here is the authority of the organization and their respective coordinators. The power lies with the management and to complement the management operations, other units of the organization support with their work such as HR, Administration and Finance. Every group of people require a person who can lead or take the ownership of the actions of the team aligned with the short term goals, mission and vision of the organization. Without a good leader, an organization will be full of chaos, improper direction, faulty and loss-making decisions. Therefore, with the change in the environment of the organization, either the role of leadership or the departments coordinating with the actions of the leaders will directly or indirectly hamper the working of the organization.

                Changing the management environment will lead to either acceptance or rejection of the subordinate or under a guided group of employees and hence can be productive or destructive with an organization. The change in management environment directly influences the capability of the leadership of the organization. Therefore any direct change to the highest level of management is generally avoided or deeply consulted with all stakeholders.

                Change in the HR Department might influence the capability of hiring the right talent for the organization or letting go of the incompetent talent in the environment. Also, adopting changes in the HR environment can be difficult as mapping the skills and talent pool to new adjustments can be tricky. The new parameters for promotions and incentives for the employees might forget to take into the consideration of already running performance and appraisals. These policies directly influence the employees’ job satisfaction and loyalty for the organization. The employee retention rate is similarly affected.

                Change in the environment variables of the finance or operation department will affect the forecasting and progress of currently running projects of the organization. These modifications can lead to an increase in financial implications for current projects. Therefore, it is always suggested to incorporate the changes into new upcoming projects which will not only make sure that most of the operations remain unhindered as well as help in comparisons with the efficiency of previous projects and window of optimizations.