Advertisements
Advertisements
Question
A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.
Solution
- Beyond the restrictions of formal structure, management should encourage employees to engage and socialise with one another through gatherings and outings. This allows everyone to interact and brings like-minded people closer together, resulting in a more delighted staff.
- Management should also develop staff recommendation systems to implement and recognise good ideas. Communication lines should be kept open in order to promote a sense of belonging within the firm.
- Management should attempt to distribute the organisational structure.
- Textile machinery, such as embroidery, sequencing, and buttoning machines, is indicated as an area for business diversification.
The company will benefit from the following changes:
If informal connections are encouraged, employee's social needs will be met more effectively. This will increase their job satisfaction and offer them a sense of belonging within the business. Quick decision-making will also occur since prescribed lines of communication will not be followed, and faster dissemination of information will provide prompt feedback. Implementing employee suggestion systems will enhance motivation for employees who offer good proposals. This will also help reduce workforce turnover. Implementing decentralisation will also help.
All of the preceding will aid in achieving organisational goals and eliminating the shortcomings of formal structure.
APPEARS IN
RELATED QUESTIONS
Answer the following question:
Aradhana and Gandharv are heads of two different departments in 'Yumco Ltd.' 'They are efficient managers and are able to motivate the employee of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfillment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of 'Yumco Ltd.' has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure 'Yumco Ltd.’ has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified.
What is meant by the divisional structure of an organisation?
'Himalaya Ltd', is engaged in manufacturing of washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes the efficiency of employees. There is no duplication of efforts in such type of organisation structure.
Identify the type of organisation structure described above
State any three features of 'Informal Organisation'.
Identify the network of social relationships which arises spontaneously due to interaction at work.
Draw a diagram depicting a functional structure.
A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector. With the result the market share of X limited has declined. The company had followed a very centralized business model with Directors and divisional heads making even minor decisions. Before 1991 this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. What organisation structure changes should the company bring about in order to retain its market share? How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG.
Differentiate between the functional organization and divisional organization
Which structure of organisation is helpful in locating the inefficient employees?
Which of the following is not the disadvantage of the formal organisation?
In which organisation structure do we find “group norms”?
Span of management refers to
Which of the following factors are of informal organisation that support the working of formal organization?
Which of the following are a few prominent advantages of a divisional structure?
______ is suitable for multi-product companies focusing on 'differentiated products'.
Match the STRUCTURE in an organisation in Column I with the appropriate EXPLANATION in Column II.
| Column I | Column II | ||
| (1) | Organisation Structure | (i) | Grouping activities on the basis of products |
| (2) | Functional Structure | (ii) | Framework within which managerial and operating tasks are performed. |
| (3) | Divisional structure | (iii) | Grouping of similar jobs and organizing them as separate departments. |
Yummy Foods Ltd. has its registered office in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ______ type of organisational structure should be adopted by the company to achieve its objectives.
Which type of organisational structure is the most suitable when the size of the organisation is large and is producing one line of product?
The organisational structure and the composition of the board of directors, are one of the internal factors of micro environment of a business organisation.
|
Diligent developers, a website design company in Bangalore is a startup initiative of Mr. Maniraj which aims at achieving a profit margin of 10% in its first year. Mr. Maniraj appointed Mr. Advait as the Digital marketing Head, Mr. Kiyansh as the head of Backend department and Mr. Nirved headed the Graphics Designing Department. Since each head was specialised in specific skills, it resulted in increased efficiency and better coordination. However, problems arose when Mr. Advait started considering group objectives superior to organisational objectives and stopped exchanging information with Mr. Kiyansh and Mr. Nirved. The company had to bear the brunt of lack of coordination and was unable to achieve its objectives. |
- Identify and state the organisational structure adopted by the company.
- State two benefits and two limitations of the identified structure highlighted in the above case.
