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BarbourBrownEngineeringLtd
Date:
20November2010
Contents
1.Introduction
2.Findings
2.1Businessstructure
2.2Thewayofgroupingorganization
2.3ContingencyApproach
2.4LineStaffandFunctionalRelationships
2.5Authority,ResponsibilityandDelegation
3.Conclusion
4.Bibliography
Thisreportisdesignedtogainanunderstandingofdifferentapproachestomanaginganorganization.Itwillintroducebusinessstructure;
thedifferentmethodsofdividingandgroupingactivitiestogether;
thealternativeapproachestostructure;
themaincontingencymodelsandtheimportanceofsituationalvariablesfororganizationaldesigntypesofstructurerelationships,includingauthority,responsibilityanddelegation.Thewayinwhichtheorganizationiscurrentlystructuredincludesmanagementtheories,butinordertomaketheorganizationdevelopbetter,itneedstobere-structured.
Goodandeffectivestructuresinanorganizationareimportantinachievingobjectivesandperformingwell.Therehavebeenmanyapproachestotrytoclassifyanddescribethevariousorganizationalstructures.
Peoplemaybegroupedtogetherandreporttoaparticularmanagerorteamleaderinavarietyofways.Rememberthattheteamorganizationdoesnotonlycoverbusinessactivities,butcancovergroupsofpeopleworkingtogethertoachieveacommongoal,forexample,BarbourBrownEngineeringLtdinthecasestudy.
Theorganizationhasagoaltocontinuesuccessandgrowthandmuststructureditselfinordertodothis.Therewillbecertainpositionswhichitmustfill,forexample,itmusthavealeaderwhoDavid,NeilandstaffJack,James.
WhileNeilconcentratedonpromotingthebusinessandsettingupcontracts,David,methodicalbynature,actedasthegeneralmanager.Helikedtorunatightshipandhis10yearsintheRAFhadshapedhisstyleofmanagement.Davidsetthestaffspecifictasksasthisenabledhimtokeepatightcheckontheirperformance.
Structureinclude:
MechanisticStructure,OrganicStructure,MatrixStructureandFlexibilityStructure.
Inordertodecideonthemethodsofgroupingordivisionofworkthemainobjectivesofthebusinessmustbeconsidered.
Now,thestructureofBarbourBrownisHybridmanage.Andtheyarefacedwithsomeproblem,suchastheywillloseanybigcustomersandthemlesstodowiththecurrentpricingpolicy.ForsolvetheseproblemsandmaketheBarbourBrowndevelopbetter,theyshouldchangethestructure,inotherwordstheyneedanewstructure.Anotherdefinitionisagroupofpeopleengagedinajointenterprise.Itwillhavecontrolledperformancewithstandards,itsmembersidentifying:
goals,measurement,andcomparisonsofactualversusplan,correctiveaction.IsuggestBarbourBrownuseFlexibilityStructureandconsidertheGeographicalDispersion,especiallythelocationofGeographicalDispersionandmakeagooduseofthiselement.WithitBarbourBrownwillsolvetheproblemanditisgoodforBarbourBrowndevelopment.ThebelowLocationshowofGeographicalDispersion,anditcanconsultforBarbourBrown.
Contingencytheorytakestheviewthatthereisnoonebestwaytostructure,manageorcontrolabusiness.Themethodstobeemployedshouldbebasedonfindingthebestfitbetweenheorganizationanditsenvironment.Theparticularsituationalfactorssuchassize,technologyorenvironmentwilldeterminethestructures.
2.3.1Task:
Thenatureandsizeofthetaskisakeydeterminantinshapingtheorganization.Anotherconsiderationthataffectedtheshapingoforganizationswasthedivisionoflabororspecializationoftask.Manywriters,butinparticularAdamSmith,FrederickTaylorandAlfredSloan,promotedtheconceptofbreadingactivitiesdownintosmallelementssothatanindividualorgroupscouldspecializeinthemandbecomeveryefficient.Sloan,inparticular,promotedthedivisionoforganizationsintospecialistdepartmentswithspecialistmanagersandstaff,e.g.marketingorproductiondepartments.Hencehowworkisdivideduphasanimportantimpactonstructure.
2.3.2Technology:
Itisakeyfactorinorganizationsuccess.Severalstudieshaveshownhowtheapproachtakentoproduceanitem,i.e.thetechnologycaninfluencethestructure.JoanWoodward,inparticular,examinedthingslikethenumberoflevelsofmanagementinanumberofcompanies.Shefounddifferencesdependingonwhetherthecompanyusedcraft,massorprocessproductionmethods.
2.3.3Size:
Theexistingevidenceindicatesthatthesizeofanorganizationisprobablythemostimportantvariableinfluencingthestructureandshapeofanorganization.E.g.largeorganizationstendtohavemoreformalizedsystemsandproceduresthansmallones.
Soaneffectiveor