Question

Would a flexible or a more formal structure be appropriate for these organizations: (a) a large department store, (b) a Big Five accountancy firm, (c) a biotechnology company? Explain your reasoning.

Using the job characteristics model as a guide, discuss how a manager can enrich or enlarge the jobs of subordinate employees?

When and under what conditions might managers change from a functional to (a) a product, (b) a geographic, or (c) a market structure.

Answer 1

Would a flexible or a more formal structure be appropriate for these organizations?

  (a) a large department store- Since a large departmental store has an hierarchy to take decisions, a formal structure would be appropriate. Also, the retail industry is a stable environment which has low risk and uncertainty with huge availability of resources.

(b) a Big Five accountancy firm- An accountancy firm requires flexibility structure because these firms are managed by highly skilled professionals. A flexible structure would allow more authority to the professionals to take decisions.

(c) a biotechnology company- Since this is science related field, the environment is always changing. To accommodate to the changing environment, it is recommended to have a flexible structure. Also, the biotechnology firm is staffed with doctors and scientists who does not require any formal structure to be directed in their duties.

Using the job characteristics model as a guide, discuss how a manager can enrich or enlarge the jobs of subordinate employees?

A job characteristics model has five core job characteristics such as skill variety, task identity, task significance, autonomy and feedback.

Skill variety- A manager can enrich the jobs of subordinate employees by developing the skills of the employee and guiding him to perform even tougher tasks. This aspect would motivate the employees to achieve higher levels.

Task identity- is completing a job from start to finish with a visible outcome. This is a critical component of job satisfaction. The employee should be provided with something like a project.

Task significance- The extent to which the performed task has an effect on others. The employee’s knowledge and expertise which requires to perform a particular task which other team mates are dependent on is a highly relevant factor for job satisfaction.

Autonomy- an employee’s freedom in performing the task is autonomy. This leads to high responsibility eventually leading to commitment and no absenteeism.

Feedback- A manager must provide appropriate feedback to the employees so that there is no turnover in the company. Positive feedback should be highlighted and negative feedback should be used as an improvement tool.

When and under what conditions might managers change from a functional to (a) a product, (b) a geographic, or (c) a market structure

A functional structure is grouping the functions in an organization. For example, sales and marketing department, Operations department, etc. This structure is used when sales is high.

Product- A product structure is grouping the organization based on the different products. Managers should choose to shift from a functional to product structure when there is an increase in the product line or division

Geographic- A manager would consider shifting to geographic structure when the organization seeks to diversify both at the domestic level and global level. Since it is difficult to manage the different geographic locations under the functional structure, shifting to geographic structure is recommended.

Market structure- A change to market structure is suggested to meet the growing needs of the different customer segments. Market structure is preferred when time is crucial and strategic decisions need to made quickly to meet the customer’s demands.