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Organization Design in the Future - Emerging Trends In Corporate Structure
Management Concepts & Organisational Behaviour - Emerging Trends In Corporate Structure
Organization Design in the Future - Emerging Trends In Corporate Structure
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The distance between the point where an organization experiences the forces of change-especially in its markets, technologies, and products and the point where strategic decisions are made to redesign the company in response to these forces is often five or more levels of management.
Organization
Design in the Future
The distance between the point where an organization experiences the forces of change-especially in its markets, technologies, and products and the point where strategic decisions are made to redesign the company in response to these forces is often five or more levels of management. As a result, the time it takes to respond to major changes may be much longer than necessary, causing organizations to be reactive rather than proactive (the forefront of change). Requests for changes carry a heavy burden of documentation, justification, presentation and timing as they move up and down each of the several levels of management.
Organization of the future will seek to reduce the physical and psychological distance from the top to the bottom of their structure. The authority, responsibility and power necessary to deal effectively with rapidly changing conditions will be vested in the lower levels of the organization, where the factors relevant to decisions about change are most readily apparent and best understood. John Sculley at Apple moved in this direction by adjusting Apple’s design so that territorial managers have greater discretion in deciding how Apple can meet the needs of major customers (educational or business) in their areas. Sculley also created rapid-response teams composed of the territorial manager, a production manager, and an ancillary product manager. This team has the authority to make significant decisions about how Apple will price, produce, and supply products for customers whose needs exceed certain levels.
Less Number of Management Levels
The distance between the point where an organization experiences the forces of change-especially in its markets, technologies, and products and the point where strategic decisions are made to redesign the company in response to these forces is often five or more levels of management. As a result, the time it takes to respond to major changes may be much longer than necessary, causing organizations to be reactive rather than proactive (the forefront of change). Requests for changes carry a heavy burden of documentation, justification, presentation and timing as they move up and down each of the several levels of management.
Organization of the future will seek to reduce the physical and psychological distance from the top to the bottom of their structure. The authority, responsibility and power necessary to deal effectively with rapidly changing conditions will be vested in the lower levels of the organization, where the factors relevant to decisions about change are most readily apparent and best understood. John Sculley at Apple moved in this direction by adjusting Apple’s design so that territorial managers have greater discretion in deciding how Apple can meet the needs of major customers (educational or business) in their areas. Sculley also created rapid-response teams composed of the territorial manager, a production manager, and an ancillary product manager. This team has the authority to make significant decisions about how Apple will price, produce, and supply products for customers whose needs exceed certain levels.
Tags : Management Concepts & Organisational Behaviour - Emerging Trends In Corporate Structure
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