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Critically evaluate the statement: “A company with shared goals, strong leadership and hard-working employees can still fail if the organizational structure is not fit for purpose

Introduction

Organization structure refers to the hierarchical arrangement of lines of communication, rights, authority and duties of an organization. It will also refer to how the tasks are allocated supervised and coordinated towards the achievement of the organizational objectives (Chuang et al pp 23). A structure will depend on organization’s strategy and objectives. The modes of performance and operations will be determined by the structure. The organization structure will affect the company actions in two major ways. One way will be the provision of the foundation on which routines and standard operating procedures rest. The structure will also determine the individuals to participate in the process of decision making and how their views will better shape the organization’s structure. There are different types of organization structure namely pre-bureaucratic structures, bureaucratic structures, functional structures, divisional and matrix structures (Bock, pp 45). The pre-bureaucratic structures will lack the standardization of tasks and is often used to solve simpler tasks while they are also centralized. Bureaucratic structures have a certain degree of standardization and are mostly suited for large or complex organizations. The structure will have several management levels with rigid and tight constraints, procedures and also policies. The functional organization structure will consist of activities such as coordination and tasks allocation.

Some of the functions to be grouped in this structure include human resource, marketing, accounting, and production. There is the high degree of formalization leading to the rigidity of communications in the functional organization. Divisional structures will consist of self-contained divisions. The various functions forming a division produce a product. It is a common structure for most organizations due to its massive advantages. The structure helps in increasing the flexibility of employees especially those responsible for some types of products (Daft, pp 76). In this structure, the authority is delegated for the direct measurement of performance by each group. The structure is advantageous as the coordination of divisions is easier while using this structure. The only shortcoming of the structure is that it supports unhealthy rivalries among the formed divisions. The matrix structure will group the workers by both product and function. The matrix function will use the team of employees to accomplish various tasks. The structure will allow for the specialization of that enhance the depth of knowledge in a specific segment is increased (Bock, pp 48). The differentiation between the project and functional managers increases the complexity of the command chain.

Without a fit for purpose organization structure, the company with strong leadership, hard-working employees and shared goals might still find difficulties in succeeding. Organization is necessary for success in any firm(Daft pp 88). The fit for purpose structure will be very influential in the process of project management. The organization structure will dictate the project management level, ultimate decision makers of the projects and also communicating the tasks and goals of the company. The process will also involve the way in which the project manager works with the team in the firm. The tight or loose project management will depend on the organization structure in a company. The fit for purpose structure should be able to set whether the project required at different times should be tight or loose (Chuang et al,pp 70). The tight process will necessitate a rule-bound structure where close manage of each step is required. A looser scenario may be used in cases where the company is small, or the team members of the project are able to work together successfully for long having acquired the necessary experience. The tighter structure will be preferred when having new members in the team or when having complex projects. Failure to determine the type of project required will result in difficulties in achieving success in a company. In this case, the fit for purpose organization structure will be able to determine and set the right type that will prevent the instance of failure.

Communication is essential for any company that seeks to success in the many operations. The organization structure will greatly impact on the necessary communication to complete the project successfully (Daft pp 94). A fit for purpose structure will foster interdepartmental communication. The structure will enhance frequent dialogue between subordinates and management. The project will still have a great chance to succeed. There are many instances where department exists in the vacuum where each person does not understand the activities or the tasks performed by fellow team members in the project. The will be poor cooperation in the company that might lead to failure of the projects. Good communication will properly support the projects and allow for the less duplication of efforts in making the projects in a company successful. The company lacking the fit for purpose structure might face problems in the management of the project. When all the works are working together towards common mission or goals while ensuring effective communication, the projects will thrive which will accelerate the performance of operations for the achievement of success in the firm (Weigelet & Miller,pp 68).

Every company that is keen on ensuring the success of its operations has to give consideration to the chain of command impact. With the organizations structure, the chain of command will arise. The subordinate and hierarchy of the manager is always a project management factor. Through the project management team, the clear understanding of the roles to play in completing tasks will be made possible (Weigelet & Miller,pp 50). The manager of the project will be bound by the command chain in pulling the fit people for carrying out various tasks in the company. The fit for purpose organization structure will have a well-designed chain of command. However, the project managers might feel when it comes to the provision of direction to team members in lower levels. It is because they first need to go through the management. If the management is not able to support the project manager by allowing them to perform as he sees fit for the project, might lead to failure (Daft,pp 105). The hard-working, shared goals and also the strong leadership will not have the significant influence on the success of the company of the chain of command is not considered in projects of a firm(Lee pp 77).

The stakeholders’ influence is crucial in enhancing the success of projects in a company. The stakeholders will be the senior most executives in the company. The stakeholders will drive the goals of any project or operations in a company. Discourse or disagreements might occur where the project manager will have to seek direction from the stakeholders. In a fit of purpose organization structure, the stakeholders will provide positive feedback and make right decisions that will enhance the development of the company for its success (Lee pp 104). In this case, the expected outcome of the projects will be worked on efficiently to avoid failure. These factors indicate the importance of a fit for purpose structure that helps in driving the company to its success through the achievement of goals and objectives.

Every company will require an effective organization structure despite the presence of various factors that could contribute to the success of its operations. The organization structure needs to be fit for purpose to prevent instances of failure. The processes and people in a firm will need to become fit for purpose. Fit for the purpose will mean to be properly suited for some designated function. In a broader perspective regarding the company been fit for purpose, it will refer to the opportunity to unleash innovation, improve financial performance, retain employees and also attract more clients (Daft, pp 39). Focusing beyond the increased shareholder profits is vital in modern company’s ability to thrive and be successful.

The hardworking employees will be essential when it comes to the success of the company. In this case, the proper organization structures should be instilled to ensure the working environment favors the operations or activities they perform. The members of any organization need to have shared objectives, vision and goals concerning the development of the company. In this case, the management levels and leaders need to ensure that all employees are united to ensure they work focused on achieving some objectives. The strong leadership will lead to the achievement of many goals set in the company. The leadership models or structures will be efficient in suggesting the best leadership behavior to be adopted in certain behavior. The various leadership structures adopted will enhance the process of strategic decision making for improvement of performance. The organization structure that is fit for purpose will ensure the strong leadership complements the management and other operations carried out in the company (Chuang et al,pp 65). The employees and leadership in a company can have some shared goals but lack the consistency and strategies to achieve the objectives. In this case, a good organization structure will facilitate the delegation of duties and tasks to ensure the objectives are efficiently achieved for the success of the company. The company that is not fit for the purpose will face challenges in the realization of its visions or goals despite the strong leadership, strong cooperation in having shared goals or the hardworking employees.

Companies without a well-designed organization structure will have problems when it comes to the handling of operations and major activities which aim at driving the firm to success. Such cases prompt the management of every company to make efforts that seek to make their organization structures fit for purpose (Daft,pp 88). There are several fit for purpose principles to be considered to determine if the organization structure design is effective. Consideration of these factors by managers and leaders of the company is essential as they monitor their operations to ensure competitiveness and relevance in the market. One principle of effectiveness is that the structure should enable strategies. The structure should be designed in the way that appropriate management oversight is ensured as well as strategic initiatives. The existence of the structure is to enable the critical work and strategies activities that deliver it. The leadership might be strong but if operation priorities are not given sufficient management, it will effectively result in failure in a company. A fit for purpose organization structure should leverage people. An appropriate elegant design needs to be created while the management works to find the right talent to carry out various tasks. These efforts are aimed at ensuring the operations’ key strategic initiatives and capabilities are met (Bock, pp 99).

Engagement of the different types of workers in specific tasks should be considered in any organizational diagnostic. The employees might be hard working in a firm but if there is poor leveraging the performance of various operations will be affected. The disbelief about the current employees and talent should be suspended when it comes to the workforce capability. The principle will ensure the organization structure is fit for purpose that enhances the better performance and success of the company. Containment of costs is another principle that qualifies the organization structure to be fit for purpose (Bock, pp 72). The management should ensure the spans of control, staffing levels and also the staffing pyramids are properly done to ensure effective containment of costs. The management should ensure all the operations are equally funded. Failure by the leadership to contain costs will be a factor hindering success. A fit for purpose organization structure will optimize hierarchy. Provision of unique value rather than supervision alone by the management layer is crucial in a company. Facilitating knowledge or linkages between units and functional guidance will be vital in any company. It will ensure the hardworking employees are motivated to perform better as there are quality management and leadership in the firm. The alignment of management layers in a company should be done by its risks profile. Failure to optimize the hierarchy and constant involvement of the employees will be a hindrance to success in the company. Strengthened accountability in an organization structure will be essential in any company that seeks to succeed in its operations. Having shared goals without proper monitoring of the operations whether they promote the realization of the objectives is of no need in any company (Chuang et al, pp 90). The management should ensure they have performance measures where the bottom line results are eliminated. Adequate control will be possible if the management can assess the performance of their subordinates. Accountability in handling operation involving the finances and performance of tasks in a responsible manner is vital in an organization structure with the objectives of massive success.

A fit for purpose organization structure should also improve innovation and flexibility. The employees might be working hard to contribute to the success of the company, but efforts by the management do not enhance flexibility. The flexible design will facilitate the development of new strategies that are able to adapt to future changes. A company with undue interdependence and complexity in its structure will face difficulties making changes due to the ripple effect. The principle is required in any effective organization structure in a company. The structure that ensures the clarification of responsibilities, rights and decisions is fit for purpose (Csasza, pp 88). The requisite decisions should not be located in a single source. The failure to involve the workers in the decision-making process will fault the strong leadership exhibited by some of the heads in the company. The impact of the decisions should be localized to ensure it is felt throughout the firm. Failure to observe this principle might result in failure despite the having shared goals that should enhance quick success due to effective cooperation.

Protection of critical specialists is another factor that makes an organization structure effective in enhancing the success of a company. Boundaries need to be instilled to give control over the goals, provide the performance and strategy measures to the leaders in various units with the main aim of developing specialist skills in the company (Daft, pp 59). These principles should be given consideration by any company that wants to have an effective organization structure promoting its quick success. The fit for purpose organization structure will exist to enable the performance of tasks and operations work in line with the firm’s strategies and ensure the proper utilization of the resources. Every aspect of the factors that make an organization structure is crucial for consideration. Strategies are also important in acting as vital drivers of the organizational design.

Conclusion

In a nutshell, the fit for purpose structure will be vital in every company focused on development and growth. Strategy and structure are closely related as they need to be aligned to achieve the missions and goals of the organization. The various factors that make an organization structure fit for the purpose will have to be considered and practiced to prevent failure of projects initiated by the companies (Bock,pp 132). Despite the having hard-working employees, shared goals, and strong leadership more focus should be on the strategies of making a structure effective in nature. Adherence to this will contribute to the success of the company.

Work cited

Bock, Adam J. “Narrative Coherence and Organizational Structure.” Academy of Management Proceedings. Vol. 2014. No. 1. Academy of Management, 2014.

Chuang, Li-Min, Chun-Chu Liu, and Wen-Chia Tsai. “The Impact of Creative Personalities and Organizational Structure on Organizational Innovation.” International Research Journal of Finance and Economics 102 (2012).

Csaszar, Felipe A. “Organizational structure as a determinant of performance: Evidence from mutual funds.” Strategic Management Journal 33.6 (2012): 611-632.

Daft, Richard. Organization theory and design. Cengage learning, 2012.

Lee, C. L., & Yang, H. J. (2011). Organization structure, competition and performance measurement systems and their joint effects on performance. Management Accounting Research, 22(2), 84-104.

Weigelt, C., & Miller, D. J. (2013). Implications of internal organization structure for firm boundaries. Strategic Management Journal, 34(12), 1411-1434.

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