BOK MATRIX
Introduction
Organizational structure builds the base of any organization. The structures define the
primary goal of the existence of the organizations and based on the structure in which the
organization is operation, the synchronization if mission, vision and aim are worked on. The
formal structure primarily includes various defined positions of each of the member in the
company. Setting a dimension of the differentiation can act as a criterion on the base of which
the employees and management of the organization would be formally divided into different
positions and departments, as viewed by the division of the labor; or into the ranks, notably at the
various managerial levels; or into the subunits, like the organization’s local branches, regional
branches, headquarters divisions, or the sections within these branches as well as divisions
(Rivkin, 2000).
Analysis
The structural component can be defined either as a distinct official status or the subunit
in the firm. Differentiation in an organization primarily refers towards the number of structural
components that needs to be formally distinguished in the terms of any of the defined criterion.
The diversity in organization brings innovative ideas along with assisting organizations to
continually strive for improvement; if the prevalent positions in the company never undergo a
change up by the newer people then the firm would become highly stagnant and would
eventually fail (Steven McShane, 2009). Organizations around the globe can improve change
efforts made by them using some practical, effective graphic metaphors as well as an
organizational transition model for insuring employees understanding, and commitment towards
the whole process of change. This means that the companies should guarantee their smooth sail
through during their change voyage.
Differentiation is not only attributed to large organizations however it could be for any
organization that has a structure requiring diversity towards continued functioning of various
divisions. The span of control primarily refers to the number of employees and the subordinates
that the manager or the supervisor of the organization could effectively handle (Michael A. Hitt,
2008).
The manager of a small firm also needs to be concerned about the organizational
structure because to grow more it needs the structure within the organization to define its
organizational culture which in turn will define the goals and mission of the organization.
Structure is always linked to organizational culture which in terms is linked with the goals and
effectiveness of an organization. To achieve the organizational objectives; a manager should
implement proper structure. Many organizations are not able to grow big just because of their
negligence towards the structure.
The centralized organizations are primary those wherein the most of decision making
authority is in control of the few people that are at the top of the hierarchy. Centralized
organizations usually carry a top-down structure of the management, wherein the top-level
managers have a strong control over the entire direction of the firm through their decisions as
well as supervision. Conversely, an organization with the decentralized structure allows the
greater decision-making as well as the authority at lower organizational levels (Randall S.
Schuler, 2007). In decentralized structure, the power is distributed among appropriate levels of
the organization and each division has the authority and control to come up with their decisions
and strategies.
Highly decentralized organizations might have the divisions that would be operating
nearly independently of the other divisions in the organization. The standards are the set of
various guidelines defining on how the organization needs to behave. For example, the
employees need to show utmost respect to their employers regardless of the organizational
hierarchy they operate in (Steven McShane, 2009). The queries asked of the division’s managers
needs be clear as well as to the point as their time is precious, valuable and limited. In the
horizontal differentiated firms the type of the hierarchy that in the place is similar however
certain protocols within the hierarchy may have been altered.
For instance consider an organizational situation wherein there may be three different
managers and then a senior manager and the employees of the company need to follow the
organization’s chain of command. These rules might be amended in a way that the firm’s
employees need to go through only two of these three managers or could by-passes them
altogether in the order towards get to the senior manager (Randall S. Schuler, 2007). There might
be some internal confusion at initial stages however these employees might find the whole
process efficient and faster.
A functional organizational structure primarily is the one wherein the employees are
grouped usually on the base of their work experiences, core expertise or because they had used
the same resources. Employing functional structure in the organization also has various
disadvantages as in this structure the requirement of the firm towards its growing product lines is
highly strained because the skills as well as abilities of the employees gets narrowed down to the
assigned functions (Randall S. Schuler, 2007). This however could be solved through various
training programs as well as hiring the employees that carry varied skill sets and are good with
multitasking. Secondly, the communication problems within the organization could highly
increase because of the interaction within the various departments is reduced.
The organizations employing functional structure needs to create an open line of the
communication within various divisions and the departments. Thirdly, the measurement
problems in the functional structure are usually to erupt as it becomes highly difficult towards
analyzing which person has been more efficient compared to the low performed in the team. For
determining the productivity the number of products as well as services with the lower amount of
the problems would be an efficient indicator of the good productivity. Also, assigning
individuals goals to the employees within the team that match up to the key performance
indicators of the team would be a good idea to overcome this problem. Lastly, the strategic
problems in the organization are not given a highly significant focus in the functional structure as
the top executives and management of the organization is majorly busy in looking the solutions
of the coordination problems. The top management of the organization needs to delegate various
tasks that are highly important but are not in the authorization and power of the management
towards handling the in a timely manner. This could be daily operational strategies required to
maintain the ground staff of the organization.
When all these solutions are implemented the firm the productivity, the profitability as
well as the market share of the firm could be greatly increased. Self-Managed work teams also
form a part of a prevalent organizational structure prevalent in the current scenario. Self-
managed work teams are the teams formed in the organization consisting of around 12 to 15
employees that are then assigned the responsibilities those were formerly being handled by their
supervisors (Steven McShane, 2009). The responsibilities included the plan and design of work
schedules, operating decision making capacity and to handle the problems related to work. These
teams within the organization are completely by themselves, that reduces the supervisor’s role in
the organization.
Quantitative research method of undertaking research is generally derived from
experimental and statistical methods in natural science. Under this method, the main focus is to
measure how much is required for how many people. The main tools of this method are large
scale surveys which are analyzed by using statistical methods. The hypothesis are identified and
combined into questionnaires by this method. Quantitative methods are used in large scale
research projects teams composed of a number of skilled research designers and analysts assisted
by teams.
Quantitative research has already proved to be an effective tool of exploring, analyzing,
and researching various management concepts and phenomena. The definitions of quantitative
research vary: more often than not, quantitative research is defined as the means of researching
and analyzing quantitative relationships between variables (Nykiel 2008). Quantitative research
presents business researchers with a unique opportunity to gather and analyze the data that can
be tracked over time (Nykiel 2008). Quantitative research is associated with numerous
advantages and, simultaneously, reveals serious methodological limitations. The latter, however,
do not prevent the researchers from using this form of business research to achieve reliable and
measurable research results.
Quantitative research is believed to have two most important advantages. First,
quantitative research is the most effective way for researchers to produce statistically reliable
results (Nykiel, 2008). In other words, quantitative methodology is the only way for business and
management researchers to determine whether one idea and/ or concept is better than its
alternative(s). Second, the results produced in the process of applying quantitative research
methodology in practice in practice, researchers in management are capable of producing the
results that are readily projectable to the population (Nykiel, 2008).
Conclusion
An organization, whether big or small, is defined as a group of people working together
to achieve common goals. The top management establishes the organizational goals. These goals
are then redefined to obtain measurable performance targets. Such measurable parameters help
the management monitor employees and ensure that they are on the right track. The management
also develops strategies that will help the organization meet these goals. The implementation of
these strategies requires a formal structure of authority and responsibilities (Therese F. Yaeger,
2009). A well designed organization structure facilitates coordination among the activities of
employees and enables an organization to accomplish its goals and objectives.
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