Organizational Design Q&A
A. Describe organizational theory with good examples: What are the types of organizations and their role in the growth of UAE?
Organizational theory evaluates structures and designs, the relationship of organizations to their external environment, and the technocrats and managers’ behavior within organizations. A good example of an organizational theory is Classical organization theory which involves the Scientific Management Approach, a concept of planning work to attain simplification, specialization, standardization and efficacy. The types of organizations can be classified into small or Large, Manufacturing or Service, Domestic or Multinational and For-profit or Not-for-profit (Francescato, Donata, and Mark S. Aber).
The role of organizations in the growth of UAE would be:
• Bring together resources to achieve desired goals and outcomes
• Produce goods and services efficiently
• Facilitate innovation
• Use modern manufacturing and information technologies
• Adapt to and influence a changing environment
• Create value for owners, customers, and employees
• Accommodate ongoing challenges today
Discuss various dimensions of organizational design.
1. Structural Dimensions– describe the internal characteristics of an organization
i. Formalization: the amount of written documentation in the organization. It includes procedures, job descriptions, regulations, and policy manuals
ii. Specialization: the degree to which organizational tasks are subdivided into separate jobs. Skilled trades often exhibit a prominent level of expertise.
iii. Hierarchy of Authority: describes who reports to whom and the span of control of each manager. The number of layers of management: tall vs. flat organizations.
iv. Centralization refers to the hierarchical level that has authority to decide. Centralized decision-making (at the top) gives little discretion to lower-level employees.
v. Professionalism is the standard of formal education and training of employees. Accounting firms are deemed to have an elevated level of professionalism
vi. Personnel Ratios: refer to the deployment of people to various functions and departments. Measures include various ratios such as administrative ratio.
2. Contextual Dimensions – everything that shapes the structure of the organization
i. The size of an organization is the magnitude that reflects in the number of people in the group and is treated as a social system
ii. Organizational Technology: is the nature of the production subsystem that changes inputs to outputs. It includes assembly lines, classrooms, and oil refineries.
iii. Environment: includes all elements outside the boundaries of the organization. It includes customers, suppliers, competitors and government.
iv. Goals and Strategy: Define the purpose and aggressive techniques that set one organization apart from others. It includes mission statements and plans of action
v. Culture revolves around the sets of fundamental values, beliefs, understandings, and norms shared by employees.
B. Discuss the impact of the following on organization relationships, inter-organizational relationships and designing structure to fit global strategy:
1. Technology: Technology affects the way an organization communicates with one another …
