Question 1
The current organizational structure based on classic bureaucratic lines is ineffective for the company to succeed in a rapidly growing and uncertain environment. Therefore, during the third and final phase of the change process, the task force should recommend a dynamic network structure that will flatten the bureaucracy and create a highly effective and productive organization. They should recommend a structure that will distribute leadership and control across the organization to eliminate the bureaucracy, which is exists currently. The company should eliminate the outdated organizational structure completely and instead create a new structure that will support distributed leadership and innovation (Chapter 3). The network structure is sufficient for the company since it blends strategy, structure, and management processes to facilitate the achievement of organizational goals and objectives. Besides, since Jake’s company operates in the high-technology industry, it should adopt a structure that will support innovation and competitiveness, which takes advantage of internal and external competencies. Innovation is closely related to such a company’s innovation activity, and numerous networks operate to achieve its success (Palyvoda et al., 2018). All the networks will work together for the benefit of the organization.
Network organizations are generally flexible, and market mechanisms control them instead of stringent management or administrative procedures like bureaucratic structures. The company will obtain its critical resources through strategic alliances and outsourcing instead of ineffective in-house development. The company will also take advantage of teams of competent individuals within and outside the workplace. Essentially, such organizations are founded on cooperative, multidisciplinary teams and businesses networked together across the enterprise. Rather than a rigid structure, it is a modular organizational architecture in which business teams operate as a network of what we call client and server function” (Chapter 3, 53). The management’s role will be finding out the most effective teams and partners to network with to recreate competitiveness. Besides, the administration understands the business environment’s dynamic nature, which creates a dire need to change the current structure.
Question 2
Jake was correct in his suggestion of how the task force should proceed since the three phases were necessary to understand and solve the firm’s lack of competitiveness. The task force required a precise analysis of the situation by looking at the current state of affairs, which is the existing structure and the nature of the company’s environment. The information will help them understand the cause of the problem, such as the current organizational structure’s inefficiency. Besides, it was necessary to learn about the environment in which the company operates to establish the structure that would be the most effective depending on the unique factors within the business environment. The information would lead up to the proposal of an effective solution.
Various issues might develop as by-products of the recommendation of a network structure for the company. First, decision making will be distributed in a highly flexible environment. For example, in different teams, the company will have other decision points, which might delay the final course of action, especially in critical decisions. The situation differs from the bureaucratic structure, which allows a few individuals at the top of the hierarchy to make all decisions and pass them down for implementation. Another problem that might arise from the networked structure is the potential for conflicts within and between teams’ networks, especially when individuals have different ideas of perspectives on the same issue. Such disputes can affect the development and implementation of a decision that affects the entire organization. Furthermore, it can cause delays in making critical decisions. Another challenge could emanate in finding competent individuals and teams, especially outside the organization, to partner with. For example, outsourcing could delay project initiation if a project manager is not readily available. The outsourced persons could face challenges adapting to the prevailing organizational culture. Thus, the task force should consider the challenges and address them accordingly when implementing the proposed structure.
Reflection
The weekly readings and videos have played a significant role in understanding the topic of organizational behavior and answering the case question. The information is critical for further knowledge outside the lecture and in corporate practice. For example, after learning the topic during the course, I read more from the readings and watched the videos to gain a deeper understanding of the case. It also provided the basis for further reading from the library because I had a good foundation. As a result, responding to the discussion questions was easy and straightforward. The knowledge will also help me to work on future projects on the same and related topics, as well as to support my future practice in organizational settings.
Discussion Question
After reading my response to the two discussion questions, I would like my peers to respond to the following discussion question: “What do you think should be procedure for Jake and his task force to implement the networked organizational structure? What resources might they require to be successful?” The question will provide further knowledge about project implementation.
References
Chapter 3: Organizational Context: Design and Culture, pp. 44-7
Palyvoda, O., Karpenko, O., Bondarenko, O., Bonyar, S., & Bikfalvi, A. (2018). Influence of network organizational structures on innovation activity of industrial
enterprises. Problems and Perspectives in Management, 16(3), 174-188.
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