Introduction to Organisations and Management Essay - 3

Introduction to Organisations and Management - Essay Example To what extent and in what specificity the businesses differ would be analysed in a critical and comparative way in the next parts of this report. Understanding the structural and design differences of the organizations. The importance of an organization’s structure is not only in defining the firm’s formal reporting relationships, procedures, authority, control and decision making process but it also works effectively as a tool of implementing strategy. The organizational structure plays an important part in defining how the work is done and by whom it is done, how managers work and also define the accountability of individuals within the organization (Hitt et. al, 2009). Various organizations can implement different forms of organizational structure in accordance to their strategic goals and objectives. The major types of structure that are widely used across most organizations can be put into 4 categories: The Functional Structure, The Divisional Structure, The Matri x Structure and the Horizontally linked structure. The functional structure groups people of similar set of skills together under a department managed by an individual having knowledge of such skills. The Divisional Structure is rather concerned with putting together a group with similar abilities required for various works or departments across the organization. The Matrix structure brings together a group of people from an already existing department to work in another function where their set of skills may be useful, besides working in their pre designated department. Under the Horizontally linked structure the organizations group its workers depending upon the activity and processes it puts in place to offer its services (Wheelen & Hunger, 2010). Putting together the understanding of the above theories of organizational structure and looking at the two organizations of the case study, a distinct difference can be seen of how both organizations are set up and working. Watson Engi ne Components looks to be working on a stricter approach of the Functional Structure whereas H&M Consulting is inclined more towards a Matrix Structure. However one can also argue that while catering to different projects with different set of skills through a networked structure it implements more than a single organizational structure to enhance its performance. This thought is also put forward by C.W. Fontaine who says that often organizations with tens of thousands of people, implement different organizational structures to benefit different parts of the organization. (Fontaine, 2007) The criticality of such structural differences It is not only important to understand what differences lie between two organizations, but is also important to fully evaluate why such difference exist and what are the resulting effects on both. In the case of Watson Engine Components, the impact of being formed as a family business has probably played a decisive role in setting the organization stru cture and working policies. More so the business operates within a single type of production and engages a substantial level of blue-collar workers who are highly unionised. These issues probably have not escalated in a single day but working over a period of time under a certain structure has definitely made the organization heavily hierarchical. This coupled with lack of communication between employers and