Introduction
A collective unit of people formed and managed to attain set goals and purposes is referred to as an Organization. Some of the other terms used to describe an organization include institute, firm, company among others. The success and performance of every organization depend solely on how effective its elements are implemented. Some of the major elements that determine the effectiveness of an organization may include its structure, management, design, innovation, communication and leadership. Each element is composed of other components that correlate. These elements differ as to how they are implemented in different organizations and they dictate the outcomes of the purposes and goals set and looked forward to achieving. In this report, I shall record the findings of the research done for the elements of an effective organization, the sub-elements that are closely related and how it has impacted most organizations.
Components of an Effective Organization Structure that impacts Organizations in a Global Economy
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An organizational structure is the system or channels defining the levels of leadership or the hierarchy used to identify the work needed to be accomplished, the functionalities and the final place of reporting to in the organization. These structures are key determiners of the relationships within the organization and success of any organization and it sets the boundaries and helps in promoting accountability. Therefore, the structure of any organization is basically the coordination of individual personnel and teamwork in order to reach the goals, purposes, and objectives of the organization. The components of an organization’s structure that we shall focus on include; chain of command, decentralization & centralization, span of control, formalization, departmentalization
Centralization and Decentralization
Centralization and Decentralization is the ability of members of any organization to make decision in the department. Unlike companies that lack this structure within their organization, whose decisions are made at the highest hierarchal levels of authority, the centralization makes it possible for organizations to deal with issues that arise right there and then without waiting for seniors to help in decision making. Within a global economy, this structure helps organizations to move forward without being held behind by pending or unsolved issues. In addition, it reduces the tasks forwarded to seniors and the whole organization. Furthermore, decentralization may be a channel of encouraging misconduct amongst members of the organization since seniors may not be involved in some cases. Decentralization is the complete opposite of centralization. The seniors and managers have an upper hand in decision making (northcoasttraining.org. 2016). This system in most organizations is more preferred by the managers more than the employee because it’s associated with efficiency in decision making.
Specialization
Specialization is merely the division of duties or tasks broken down and deliberated to individuals. In the cases of lower specialization, employees are able to handle a wider range of tasks since this component offers a more flexible environment of duty delivery, on the contrary, the organizations with high specialization help employees to learn more skills and become experts in their areas of specialization. Depending on the organization in question both high and low specialization may work. In a global economy, employees are empowered and offered the ability to expand on the skills they have in the cases of high specialization whereas a company or organization is able to make more through the multiple duties and errands run in low specialization.
Departmentalization
Many of the organization's structures in most cases differ majorly because of their choice of structure between the two major categories that are functional and divisional structures. Under the functional structure, departments that have similar functions within the organization are grouped together. Under this structure, employees are entitled to multiple ranges of duties within the merged departments; hence they can offer their duties from one area of departments to the other. For instance, the employee under the information technology may deliver his services as a marketer promoting the companies’ products. The functional structure encourages multitasking and the ability of employees to have multiple skills. On the other hand, it may encourage overworking of employees within an organization. As for the organization itself, this form of structure enables the functions within the organization to continue with or without the people assigned in the different environment.
In the case of divisional structures, every department has specified services, products, clients or location of providing their services. Therefore, every specified service, product or clients are allocated to specific departments. Under this structure, employees work in a general aspect instead of specializing which in most cases encourages innovativeness. Both functional and divisional structures may positively influence the functionality of an organization depending on the number of product lines or departments it has.
Formalization
This form of structure is similar to specialization only that under this structure, the errands assigned to the employees are monitored and governed by procedures, rules and many other forms of the mechanism. Within a formal organization structure, the individual employee is separated from their post or role but the post and role remain unchanged despite the difference in the individual holding it. On the other hand, the informal organization regards the individual employees so highly and encourages the transformation of the posts or role depending on what the individuals like, or their skill, experience and so on. Furthermore, this structure does not concentrate on the department or team the individual participates in within the organization. In organizations within the global economy, these structures have influenced the functionality of the organization involved by ensuring liberty in delivering in the informal structure and the ability to create clarity on what is needed in departments, roles, and positions in the case of formal structure.
Chain of Command or Hierarchal
This is the kind of structure that defines the flow of leadership and authority within an organization. It explains and places clarity on the level of authority within the organization. Furthermore, the structure gives a clear clarification of who reports to whom. Depending on the other forms of structures that are exercised within an organization, the chains of command specifically in most organizations have an upper hand in critical decision making (Carpenter, 2016).
All these structures are key determiners of the levels of leadership within an organization, the ability to make decisions, the departments and the roles assigned to different individuals within the organizations.
Communication Strategies needed for an Effective Organization
Communication is a very vital tool in ensuring there is efficiency in any organization. Therefore, in order for organizations to overcome their challenges that are caused by communication misunderstandings, they need to formulate strategies for effective communication that will ensure positive results involving a wider range of participants involved. Some of these strategies of communications needed to improve the effectiveness of any company or organization should be open, inclusive, two-way, result-driven, and multi- channeled.
Open : This is where an organization ensures that everyone within the organization is involved in contributing to the ideas, feedback, and criticism freely. This ensures that there is freedom of speech and create a trustworthy environment that encourages success and efficiency in organizations that practice openness in their communication (Richards, 2016).
Inclusive : In order to encourage efficiency within organizations, all employees and members of an organization should be given opportunities in the decision making or in critical matters that involve everyone within the organization. This, in turn, makes sure that there are satisfaction and success within the employees and the rest of team players (Richards, 2016). In the case of organizations that do not involve other employees in critical matters may hinder opportunities of have great ideas and results that might have been contributed by the very team members who are shut out.
Two – Way : It is essential in every conversation or communication despite the environment to involve both parties without concentrating on their hierarchy or level of authority. This encourages successful achievements and results as compared to organizations that do not give employees and other members of the team a chance to voice their ideas, feedback, and perspectives on matters that associate with the organization’s operations.
Result – Driven : In order to enhance effectiveness within an organization, the communication should be focused on the need to attain measurable results on the set goals and purposes (Richards, 2016). This strategy encourages the leadership to identify the exact role assigned to each employee which encourages accountability within the organization.
Multi – Channeled : For communication to have a higher impact within the organizations, the messages are expected to be delivered in multiple ways and times. The levels of understanding amongst members of an organization differ with preference and needs (Richards, 2016). Hence different methods can be allocated for different messages making it possible for the various audiences will increase the ability of understanding and receivership.
Principles of Effective Management
The quality and effectiveness are determined by the core principles that every management of an organization puts into practice. This majorly is the way of governance within an organization some of these principles are the way the management delegates or divides roles and duties, ethical leadership, strategic vision, the authority, discipline, unity of command, unity of direction and subordination of individual interests to the general interests of others. We shall discuss a few.
Ethical Leadership : It is the duty of every leader or manager within an organization to identify the essential responsibilities that they have to use in governing the organization. This is essential in making sure the employees, departments and branches of the organization if any are well led to achieving the set goals and the purposes of the organization (Bauke, 2016).
Develop a Strategic Vision : having a clear and strategic vision enables the organization to connect its inception with the present activities and most importantly the future of the company. This, in turn, enables every team player to focus on the purpose of the organization without deviating (northcoasttraining.org, 2016).
Trust and Loyalty : every manager or leader is expected to lead by example. While they expect loyalty and trust from their juniors, they should be in a position to depict the same.
Delegation or Division of roles & duties : this principle encourages accountability because different individuals are assigned different duties making it easier for the management to follow up on unfinished tasks to the right individuals (Grier, 2010).
Delegation and assignment of different roles to different individuals encourages the increase in output and work delivery and enhances the employees with specialized skills depending on their strengths (Fayol, 2016).
Processes of Decision Making and Problem Solving
Proper decision making is vital whenever a problem has arisen or whenever there is a need to make progress within the organization. Therefore in order for the organization to effectively run it must follow these process when making decisions or solving problems outlined by Duncan Brodie.
Define the Problem : This is simply identifying what the problem at hand is and hence making sure the decision to be made will be the right one.
Assessing the Implications : before making any decision within an organization, the people involved must consider the aftermath of the decisions made to the management, departments and to the operations of the organization that directly affect its performance (Brodie & Brodie, 2016)
Explore different perspectives : this is ensuring that all the areas associated and involved within problem or decisions are critically looked at.
Clarify the ideal outcome: after looking at all the areas that affect the decision to be made and the problem at hand, it is important to concentrate on the outcome that is more suitable to the organization.
Weigh up pros and cons : this may be achieved by listing the advantages and disadvantages of the options mentioned which are proper at making right decisions.
Decide and act: after all the mentioned processes the management should finally settle on the most appropriate option and act on it without procrastinating.
Leadership Approach
There are different approaches to leadership that are used by different leaders in the different organizations. These approaches include the authoritarian or autocratic which entails a total authority by the leader in charge who makes most of the decisions without consulting others. The participative or democratic approach of leadership encourages the leader in involving some of the members in decision-making and problem-solving. On the other hand delegation or the free rein, leadership approach enables members to fully take part in decision making though the leaders remain responsible for the decisions made.
For contribution to the effectiveness of any organization, it is proper to have a democratic or participatory form of leadership approach. This is mainly because the leader still has the upper hand in final decision making despite involving other members. Furthermore, other members of the organization are given an opportunity to take part in decision-making and problem-solving since they are the ones who are affected directly in most cases. This form of leadership approach also encourages trust and unity within the organization from different hierarchies.
Conclusion
It is the desire of every organization or firm to achieve highly according to their purposes and set goals. In order to make this possible, the organization must have a way in which they operate and implement their strategies for effectiveness. Some of the areas that are critical and essential in making it possible for the organization to run efficiently include the organizational structure, the communication strategies, and principles of management, effective decision-making & problem-solving processes and the approach to leadership. With proper choice of the listed areas required in the organization, success and good performance are inevitable.
Reference
Brodie, D. & Brodie, D. (2016). 6 Steps to Better Decision Making : Ezine Articles Retrieved 27 September 2016, from http://ezinearticles.com/?6-Steps-to-Better-Decision-Making&id=817450
Carpenter, M. (2016). Principles of Management 1.0 Flat World Education Flat World Knowledge Retrieved 27 September 2016, from http://catalog.flatworldknowledge.com/bookhub/5?e=carpenter-ch07_s01
Grier, S. (2010). 20 Leadership Principles Every Manager Needs : IT Managers Inbox Retrieved 27 September 2016, from http://itmanagersinbox.com/1680/20-leadership-principles-every- manager-needs/
Henri Fayol's . (2016). Henri Fayol's Principles of Management: Early Management Theory Mindtools.com . Retrieved 27 September 2016, from https://www.mindtools.com/pages/article/henri-fayol.htm
northcoasttraining.org. (2016) (1st ed.). Leading Management Principles Retrieved from http://northcoasttraining.org/wp-content/uploads/2016/03/Manage.pdf
Richards, L. (2016). Communication Strategies in an Effective Organization Smallbusiness.chron.com Retrieved 27 September 2016, from http://smallbusiness.chron.com/communication-strategies-effective-organization-826.html
