Organizational Structuring Strategies
The unit readings covered three main topics; single-business strategy types, reconfigurable functional organization, and network organization design. The key theme in all topics was organizational structuring that best suits a particular business type and which allows for profitability and efficiency in service provision. From the readings, I learned a number of things that I can relate to with my working experience.
The three business strategies discussed in the first section were product-centric, customer-centric, and real-time. I found the real-time strategy to be the most interesting of the three. In my opinion, this business strategy is very risky and ties sensitive. This is because if a product’s likeability drops within a 24hr or less period, the organization will have to adjust quickly to the sudden change in customer preference (Laudon & Traver, 2016). The business strategy relies on real-time data to make decisions on product specifications. However, with social media as the fastest channel to convey information, a single negative comment on a particular product or service can terminate the lifespan of such a product which would, in turn, take a considerably long time to re-establish itself in the market.
Reconfigurable organizations, as I came to understand, are very malleable. Such organizations cannot rely on a long-term business strategy as doing so would risk them losing its market share to competitors. Further, aligning on an advantage that is non-sustainable can lead to the organization experiencing friction, conflict, lack of clarity, and cross-purpose functioning of business units which results in organizational energy dissipation (Stefanović et al., 2011). Reading this section made me realize that the employees and management in such organizations should be exceptionally innovative, have a high sense of business forecasting, and be extremely alert to any business environment changes. Any form of sluggishness in these areas can shift the market position of a business. For example, if Samsung suddenly unveils a Smartphone that has superior features to the iPhone, the market share that iPhone currently enjoys will be de-stabilized either for a short or long while. iPhone will need to develop a superior product within a short period to undo the impact of the Samsung model. Hence, employees of reconfigurable organizations should be proactive in knowing what the organization’s competitor is working on.
Lastly, the section on organizational networks revealed management’s shift over the last few decades. Initially, management in most organizations followed the traditional hierarchical system (Shafritz et al., 2015). Some organization still follows the hierarchal system, especially in Eastern countries. However, the West has experienced a shift in how organizations are managed. The focus on product specifications and customer preference have resulted in the adoption of horizontal leadership styles within organizations. The horizontal structure allows a business to tap into its employees’ imagination and creativity and empower them to work without micromanagement. Based on this, I concluded that reconfigurable organizations are likely to have horizontal structures as this would allow management to tap into their employees’ innovativeness and engage them in decision-making with regard to product improvement and customer satisfaction strategies.
The last section also discussed outsourcing of business functionalities. Based on the information I gathered from external academic sources, I came to the conclusion that Western countries should consider local production as opposed to outsourcing to other countries that offer cheap labor and raw materials (Schiederjans et al.,2015). When an organization causes a sharp decline in unemployment as a result of outsourcing its business functions, it needs to reconsider whether the negative impacts outweigh the perceived benefits it accrues from outsourcing (Levine, 2012). That said, I believe that businesses should outsource services in moderation to avoid counteractive negative implications in their home country.
Laudon, K. C., & Traver, C. G. (2016). E-commerce: business, technology, society.
Levine, L. (2012). Offshoring (or offshore outsourcing) and job loss among US workers.
Schniederjans, M. J., Schniederjans, A. M., & Schniederjans, D. G. (2015). Outsourcing and insourcing in an international context. Routledge.
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. Cengage Learning.
Stefanović, I., Prokić, S., & Vukosavljević, D. (2011). The response to the changing landscape of tomorrow: Reconfigurable organizations. African Journal of Business Management, 5(35), 13344-13351.
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U03d1 Reading Reflection
Reflect on your unit readings. Post your thoughts on the readings in 1-2 page, if 1 page no less than 3 paragraphs. Use this discussion to digest your readings and gather ideas for your reflective paper.
Read and substantively respond to the posts of at least two other learners.
DISCUSSION PARTICIPATION SCORING GUIDE
Due Date: Weekly.
Percentage of Course Grade: 20%.
|DISCUSSION PARTICIPATION GRADING RUBRIC|
|Applies relevant course concepts, theories, or materials correctly.||Does not explain relevant course concepts, theories, or materials.||Explains relevant course concepts, theories, or materials.||Applies relevant course concepts, theories, or materials correctly.||Analyzes course concepts, theories, or materials correctly, using examples or supporting evidence.|
|Collaborates with fellow learners, relating the discussion to relevant course concepts.||Does not collaborate with fellow learners.||Collaborates with fellow learners without relating discussion to the relevant course concepts.||Collaborates with fellow learners, relating the discussion to relevant course concepts.||Collaborates with fellow learners, relating the discussion to relevant course concepts and extending the dialogue.|
|Applies relevant professional, personal, or other real-world experiences.||Does not contribute professional, personal, or other real-world experiences.||Contributes professional, personal, or other real-world experiences, but lacks relevance.||Applies relevant professional, personal, or other real-world experiences.||Applies relevant professional, personal, or other real-world experiences to extend the dialogue.|
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