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Importance of Organizational Design & Structure

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Added on  2021-02-20

Importance of Organizational Design & Structure

   Added on 2021-02-20

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VALUE ANDCONTRIBUTION TOORGANIZATIONALSUCCESS
Importance of Organizational Design & Structure_1
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3LO 1.................................................................................................................................................3P1 Importance of organizational design theory and relation to organizational structure.......3M1 Apply appropriate theories and concepts to evaluate importance...................................5D1 Recommendations for improving sustainable performance.............................................5LO 2.................................................................................................................................................5P2 Different approaches and techniques used by HR for skilled and motivated workforce..5M2 Different approaches and techniques for motivation.......................................................7LO 3.................................................................................................................................................7P3 Research to support emerging HR developments.............................................................7M3 Effect of emerging HR practices on role of HR in the future..........................................9D2 Judgement and conclusion supported by synthesis of knowledge and research information.................................................................................................................................................9LO 4.................................................................................................................................................9P4 Change management and its adoption by the organization and the relation between two.9M4 Different types of changes.............................................................................................10D3 Evaluation of complex relation between organisational design and change management.10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
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INTRODUCTIONFor an organisation to succeed, efficient mangers and leaders along with a soundorganizational structure is necessary for an organisation. This helps in successful execution ofthe strategies formulated and it helps an organization in achieving success. Marks and Spencer,which is a British MNC has been taken as a reference for understanding the importance oforganization structure. This report highlights the importance of organizational design andstructure and their relation to each other. Further, this report also highlights the changemanagement and how it impacts the HR department emphasizing their importance.MAIN BODYLO 1P1 Importance of organizational design theory and relation to organizational structure.Organizational design is a concept that goes beyond the decor and interior of anorganization. It can be defined as a process or plan whose purpose is to integrate people,information and technology in the formal environment of business. The quantum of the toolsimplemented along with their quality is also a major thing to be kept in mind while formulatingthe organizational design (Ferenczi, 2018). This helps or assists the organization in achieving theset targets and aims. Organizational structure on the other hand signifies the hierarchy of thecompany i.e. the communication pattern that is adopted y the organization. An organization'sstructure is formulated in synchronization with the working environment and the powerdistribution i.e. authority levels. Two major types of organizational structure are functionalstructure and divisional structure. The organizational design theory has extreme importance as ithelps the organizational structure in :-Dealing with contingencies :- It helps in effectively controlling all the different factors relevantfor the organizational development like quantum of skilled employees, loyalty of customers etc.so that the company can increase its control over market.Gaining Competitive Advantage :- The management of every organization aims to createcompetitive advantage and for this purpose, they try to design their organizational structureaccordingly to achieve this purpose by implementing organizational strategies.Creating Diversified Workforce :- the higher the diversity level of employees in an organization,higher is the level of planning that they require and thus organizational structure gets affectedaccordingly.3
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To understand the importance of organizational design in reference to organizational structure,observation of work environment and work culture of Marks and Spencer company can be takenas an example.Marks and Spencer Group Plc is a British multinational company having itsheadquarters located in Westminster, London. It is an international retail giant and theirspecialization is mainly in clothing of the premium sector, food products and home products.Due to the global presence of organization in various countries across different markets, theoperations of the company are spread at a wide scale (Agrawal and Rahman, 2015). To manageand integrate all such operations collectively, they have adopted Functional structure as theirorganizational structure to maintain and run the business successfully. This helps theorganization in linking all the activities of entire organization as well its branches. The majordecision makers in the company are CEO, President, Vice President and Board of Directors.At Marks and Spencer, all the departments are completely aware and have completeknowledge regarding the activities and decisions made by them. This helps in taking decisionaccordingly which support the activities of all the departments and avoids any clashes orduplication of activities. Despite having stores internationally, the strong design along with thestructural balance that exists in the company can be observed by the level of satisfaction that theemployees of Marks and Spencer exhibit. This successful integration of technology along withthe structure i.e. hierarchy of the company has assisted decision making in the company at everylevel (Song and Parola, 2015).Some major factors which influence inter relationship of organizational design andstructure are as follows :-Size of Organization :- The larger the operations of the businesses, the wider its size will be.And the wider size requires an increased level of authority. The higher levels of authority mightbring redundancy in organization as involvement of employee in the decision making reducesand thus innovation level also falls. To avoid this, the organization should decentralize theauthority levels so that the speed of work can be increased (Dale,Kingma and Wasserman, 2018).Life cycle of Organization :- There are various stages in the life cycle of any organization. Atdifferent stages, the tactics that need to be adopted to successfully deal with those challenges aredifferent. The management of the company need s to change its methods accordingly at regular4
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