Organizational Structuring Strategies

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 cases was organizational structuring that best suits a particular business type and allows for profitability and efficiency in service provision. I learned several things from the readings that I can relate to with my working experience.

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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 hazardous and ties sensitive. This is because if a product’s likeability drops within a 24hr or less, 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 losing their market share to competitors. Further, aligning on a non-sustainable advantage can lead to the organization experiencing friction, conflict, lack of clarity, and cross-purpose functioning of business units, resulting 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 with superior features to the iPhone, the market share that the iPhone currently enjoys will be destabilized either for a short or a 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, leadership 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. Focusing on product specifications and customer preference has resulted in adopting horizontal leadership styles within organizations. The flat 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 would likely have horizontal structures. This would allow management to tap into their employees’ innovativeness and engage them in decision-making about 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 concluded that Western countries should consider local production instead of outsourcing to other countries that offer cheap labor and raw materials (Schiederjans et al.,2015). When an organization causes a sharp decline in unemployment due to outsourcing its business functions, it must reconsider whether the negative impacts outweigh its perceived benefits (Levine, 2012). Businesses should outsource services in moderation to avoid counteractive negative implications in their home country.

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References

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 tasks in 1-2 pages, if 1 page, no less than three paragraphs. Use this discussion to digest your lessons and gather ideas for your reflective paper.

Response Guidelines

Read and substantively respond to the posts of at least two other learners.

Resources

• Discussion Participation Scoring Guide.

DISCUSSION PARTICIPATION SCORING GUIDE

Due Date: Weekly.
Percentage of Course Grade: 20%.

DISCUSSION PARTICIPATION GRADING RUBRIC
Criteria	Non-performance	Basic	Proficient	Distinguished
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.	Use examples or supporting evidence to correctly analyze course concepts, theories, or materials.
Collaborates with fellow learners, relating the discussion to relevant course concepts.	Does not collaborate with fellow learners.	Collaborates with fellow learners without relating the 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 real-world experiences to extend the dialogue.