Organization Theory and Design

Organization Theory and Design

Introduction

The organizational design is the art of organizing work and creating coordination mechanisms that facilitate the implementation of the strategy, process flow and the relationship between people and the organization to achieve productivity and competitiveness (Daft, 2012). However, the great challenge of organizational design is to build a structure that is not only flexible and simple but also aligned with strategy, process, culture and level of development of the organization. In fact, in order to achieve results and productivity, it is imperative for every organization to organize work with as appropriate distribution of workloads.

The organizational design is a process where managers make decisions, where members of the organization implement this strategy (Baligh, 2005). The organizational design makes managers direct the eye in two senses focusing on the internal factors and those that are present outside the organization. The work of Henry Mintzberg is recognized as a founding platform for all organizational design theories of modern time. Mintzberg believes that the structure of an organization is a mechanism designed to help achieve the goals of that organization (Daft, 2012). However, the role of organizational culture is also very critical in organizational development as well as business growth. This paper aims to discuss Apple Inc. in the perspective of organizational structure and design. However, in order to have better understanding of the topic, it is it is vital to understand fundamental concepts involved in this paper.

Discussion

Organizational Structure

The organizational structure of the organization determines the hierarchy of internal divisions and staff directly, asking such a system for their working relationship. However, it is also essential to know that the role of organizational structure is much broader. In fact, organizational structure specifies the mode of information flows within the company thus being the key to the speed and quality of decision-making (Baligh, 2005). In addition, research reveals that with the growth of organizational structure businesses undergo some natural changes. For example, increasing staff does not allow communicate people in the way they are comfortable with and managers also make decisions that are only possible in a small team consisting of dozen people. It is important to understand that every modern business is conducted in a constantly changing environment and maintains a continuous improvement process to reflect these changes. It is obvious that organizations often do not have time to adapt the organizational structure to the new requirements (Tushman et al., 2012).

In fact, it has been seen in many small or medium organizations that excessive centralization and formalization leads to unnecessary bureaucracy that prevents rapid decision-making and does not allow employees to act on their own initiatives for the benefit of the company in situations that require speed and risk. However, it is also a fact that strict hierarchy is good for large companies with well-established system of business processes in stable markets (Daft, 2012). This suggests that hierarchal organizational structure creates bureaucratic way functioning that is completely unacceptable for small, young or fast growing ...