This overview of Organizational Design was prepared by Dustin Lane Dier while an Occupational Safety, Health & Environmental major in the College of Business at Southeastern Louisiana University.

Introduction

Designing an organizational structure is critical to managers and selecting the correct model, which fits your businesses core competencies and assets, can be a challenge. In reality, as any business evolves, chances are the organization will take on several of the below, outlined, organizational design models. Why is organizational design important? It is at the heart of how your business will function, determines how business decisions will be made, how many managers/employees a company will have and how it will conduct business. Without some form of organization design, whether traditional or contemporary, it will be difficult to focus your company and your human assets to maintain a competitive edge over the competition.

The Idea in a Nutshell

The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration and allow for flexibility. Organizational design models have evolved over time due to several factors including technological advances, research of historical data regarding profitability of past companies and market changes. Traditional organizational design models include; simple structure, functional structure and divisional structure. Contemporary design models include; team structures, project structures and boundary less organizations. All have their distinct advantages and disadvantages which we will explore further.

The Top Ten Things You Need to Know About Organizational Design Models

1. Simple structures are typical for businesses in the early stages of development. They usually have one primary decision maker (owner/president) responsible for decisions in all functional areas. Span of control or number of employees overseen by one individual is greater than in other design models and very few rules exist.

2. Functional structures quite simply group occupational classes together. For instance, all HR professionals work together while all accountants have their own department. Operations exist in their own world while payroll acts independently of the other groups. This model encourages technical expertise and reduces duplication of activities.

3. Divisional structure is a design model that group specific business groups together. Perhaps those in the same industry (e.g. oil & gas) form one group while construction makes up another, separate business unit. This is typical in large companies that serve more than one industry and/or that have grown dramatically through merger and acquisitions.

4. Team structures assign specific work “teams” which are comprised of employees for different functional groups, to complete work tasks/projects in the manner they feel is best. Employee empowerment is the key and while freedom exist with little direct oversight, each team is completely responsible for the work of their group is assigned.

5. Project structures assemble teams of employees with specific skill sets and assets to work from project to project. The teams form and disband as work requires and this type of structure usually eliminates the bureaucracies of large organizations, specifically slow decision making processes. When one project is completed, employees move on to the next project, never returning to formal departments.

6. Boundaryless organizations have no limitations from horizontal, vertical or external boundaries. Walls are broken down and little actual structure exists between external customers, internal departments or functional groups and even vertical organizational levels of management. Work specialization is minimized thereby reducing departmentalization allowing creativity and most importantly employee empowerment.

7. Organizational designs today should support employees in doing their work flexibly but also effectively and efficient. Balancing these two items is at the heart of many touch decisions of managers in today’s organizations. The question should be which design model would best compliment your organization and be competitive by efficient work and cost savings while maintaining the best employees and talent possible, which can mean flexible work schedules.

8. Connecting employees in this new age of technology is crucial to maintain qualified resources. Gone are the days of all hours worked must be at the office and under the boss’s nose. Today, thanks to advances in the web and virtual programs, employees can be just as effective from home on the couch or in another state while visiting family.

9. Learning organizations know how to shake and roll. They are jumpers and earth shakers, experts at adapting to changes in the business environment and market fluctuations. Employees continuously evolve with advancements in technology and industry best practices continuously improving their ability to make decisions that keep the companies competitive advantage over the competition.

10. Most every company in today’s day and age are itching to go global. How does that affect organizational design? Well, greatly. While some models will work anywhere, cultural differences are at the heart of whether the organizational design you choose for your organization’s internationals locations will fail or succeed. Authority is valued differently in different areas of the world and freedom, acceptance, even colors make a difference. Did you know the color pink is unacceptable to men in China and could dramatically affect your marketing campaign? A CEO located in the United States certainly would more than likely be unaware of the offense of that color; however a project structured team, handling the business in China would have made that catch, altered the marketing strategy and perhaps saved the company thousands.

The Video Lounge



The above video clip does a great job in laying out several of the different options for organizational design. Functional, Product, Customer, Geographical and Matrix designs are all discussed in details and the speaker even gives on pro and one con per design choice.

My Take

Organizational design is still a paramount concept in business today. In fact, a company cannot exist except to be organized in one of the above mentioned ways. Selecting the right design model and recognizing when the organization has outgrown the one you choose first are critical to your success as a manager. Study them carefully and research competitors in your industry but do not be afraid to lead the way.


References

CliffsNotes.com. What is organizational design? 20 Jul 2010.

Coulter, Mary and Stephen P. Robbins. Management. 10th. Upper Saddle River, New Jersey: Pearson, 2009.
http://owl.English.Purdue.edu/owl/resource/560/01/

McNamara, Carter MBA, PhD (1995). Guidelines for Organizational Design. Retrieved from http://managementhelp.org/org_thry/design.htm

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Contact Info: To contact the author of “Top Ten Management on Organizational Design,” please email Dustin Lane Dier at Dustin.Dier@selu.edu or Dustin.Dier@yahoo.com.

BIOGRAPHY

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of his student’s publications regarding management concepts (http://toptenmanagement.blogspot.com/), book reviews (http://wyld-about-books.blogspot.com/) and international foods (http://wyld-about-food.blogspot.com/).

Read more in Organizations

« Learning Organization

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Top Ten Management on Organizational Design: An Overview of Traditional and Contemporary Design Models

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Top Ten Management on Labor Unions: An Overview of Their History and Growth

Image via Wikipedia

This overview of the history and growth of labor unions was prepared by Amanda Dickson while a Business Management major in the College of Business at Southeastern Louisiana University.

Introduction

A labor union is “an organization of wage earners formed for the purpose of serving members’ interests with respect to wages and working conditions.” They have come a long way since the 18th and 19th century and continue to evolve through strict policies and new legislation.


The Idea in a Nutshell

The evolution of labor unions in America began as far back as the 1700s attributable to the dangerous and harsh conditions workers were facing. To add insult to injury, they were earning low wages and working long, grueling hours. Workers began to realize if they came together, it was easier for them to persuade their employers to answer their demands.

The Top Ten Things You Need to Know About Labor Unions

1. One of the first types of labor unions were called craft unions. These were skilled workers who specialized in a certain trade. For example, the Philadelphia shoemakers in 1792, the Boston Carpenters in 1793, and New York printers in 1794.

2. In 1827 industrial unions began to form. These were members of the same industry such as the steel industry, regardless of their individual jobs.

3. In 1886 the American Federation of Labor was formed. Samuel Gompers was the first president of the AFL. His objectives were clear and precise. Better wages, hours, and conditions were of top priority.

4. The AFL continued to grow larger in membership until the 1920s when there just were not many skilled workers left to become organized. Over three-fourths of workers in the United States that were organized, we members of the AFL.

5. The Industrial Workers of the World was formed in 1905. This organization, though its life span was brief, was the first to initiate a sit down strike and mass picketing.

6. In 1936, a group of industries not agreeing with the AFL’s structure decided to split and form the Congress of Industrial Organizations. This centered on complete industries, not individual trades, which was a good way to deal with industries involving mass production. The CIO, in a short amount of time, became as large as the AFL.

7. In the eleven years between 1933 and 1944 the modern labor movement was born. Many factors such as New Deal labor legislation, AFL and CIO competition, and World War II cause union membership to quadruple.

8. The AFL and CIO came to an agreement in 1955 and united to form one massive organization. With the exception of the National Education Association, all the major unions in the United States are affiliated with the AFL-CIO.

9. Since the 1980s labor union membership has fallen. Many factors such as the labor legislation, better employee-management relationships, and the shift from a manufacturing to a service economy.

10. One of the acts passed in the 1980s was the Plant-Closing Notification Act of 1988. This made it mandatory for employers to give employees a warning of plant closings or mass layoffs no less than sixty days in advance.


The Video Lounge

This video discusses the origin of labor unions.

My Take

I believe labor unions have made a huge impact on this country. Without them employers would have continued to determine the wages and conditions of employees, which for most was low wages and poor conditions. In today’s society I do not feel they play such a major role. I feel that they have paved the way for industries and companies to treat their employees better. Also there has legislation that regulates wages and hours so that labor unions are not needed as much. Granted there are labor unions today and they do serve their purpose.


References

Luft, Paula “Business Encyclopedia: Labor Unions” retrieved from www.answers.com/topic/labor-union

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Contact Information

To contact the author of “Top Ten Management on Labor Unions” please email Amanda Dickson and Amanda.Cook-2@selu.edu.


BIOGRAPHY

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also maintains compilations of his student’s publications regarding management concepts (http://toptenmanagement.blogspot.com/), book reviews (http://wyld-about-books.blogspot.com/), international foods (http://wyld-about-food.blogspot.com/).

AN INVITATION TO WORK WITH US, TODAY!

If you enjoyed this publication, why not make one of your own with us! Are you a college or university student from anywhere in the world who would be interested in publishing your work in an edited online journal appropriate to your topic? Such a move can help put muscle into your resume and make a great impression on potential employers and graduate schools (and needless to say – and perhaps most importantly in the age in which we live – likely be the first thing that companies/universities view about you when “Googling” you)! If so, we can help you get that first publication for free (and more if you desire)! Visit Wyld Publishing Services (http://wyldpublishingservice.yolasite.com/) for details. We can work with you to publish your quality essays, research articles/papers, reviews, etc. – and even audio and visual media and PowerPoint presentations – given our network of edited publications and relationship with publishers around the world who want to work with you and your work. Contact us today to get your work published at dwyld.kwu@gmail.com.


Read more:
Top Ten Management on Labor Unions: an Overview of Their History and Growth

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Top Ten Management on The Decision Making Process: An Overview of One of the Most Important and Necessary Things That All Managers Must Do

Image via Wikipedia

This overview of the decision making process was prepared by Grace Nabasabala while a major of Health Education and Promotion in the College of Nursing and Health Sciences at Southeastern Louisiana University.




Introduction

This article talks about decisions and the process involved while making these decisions. There are eight steps in the decision making process that help managers in making a decision about a problem. These include: identifying a problem, identifying the decision criteria, allocating of weights to criteria, developing alternatives, analyzing alternatives, selecting an alternative, implementing an alternative and follow up to ensure effectiveness of the decision. Understanding these steps helps us deal with everyday problems. In order to become better decision makers, we need to learn from our mistakes, restructure thoughts and be rational when faced with difficult decisions.

The Idea in a Nutshell

Decision making is the ability of a person to mentally make decisions between several alternatives. People make decisions in every step of life, either consciously or unconsciously. Decisions have long existed as life itself. In the early century, people relied on dreams, poetic wisdom and instruction from leaders or prophets. However, technology today has made it easy for people to research information.
Every decision has a consequence. There are two types of decisions, simple and complex decisions. Simple decisions require routine procedures and less effort while complex decisions are uncertain and complex in nature and may require a lot of risk. Decision-making is important for management and leadership. That is why managers need to understand the decision-making process especially while dealing with complex situations.

 
The Top Ten Things You Need to Know About the Decision Making Process

1. The decision making process is a reflective thinking approach that was developed by the philosopher John Dewey in the 1900’s. The first step is identifying the problem. Since every decision starts with a problem, we need to understand its nature or complexity. We can also consider what needs to be addressed and the importance of reaching a desired outcome.
2. Gather information to help in solving the problem. Understanding the cost, risks and outcomes may influence people to make rational decisions when faced with relevant information. Managers must select appropriate criteria which may include the use of technology like the Decision Support System to help compile useful information to solve the problem.
3. Assess the situation. Develop a ranking system that possesses a valued weight to identify each criterion by importance. The higher the ranking means the more importance the criteria and vice versa.
4. Develop alternatives to come up with a possible option or solution. Brainstorm or write down all the possible alternatives and choices. These alternatives are only ideas and not tested.
5. Analyze alternatives to select the best option. Consider, compare the pros and cons, and test the alternatives. Evaluate the value of each alternative using a decision matrix. Each alternative must be ranked in order of value.
6. Select the best alternative. Choose the highest ranked alternative and follow up to ensure proper and effective implementation.
7. Implement the solution. Decision making is a nonlinear, recursive process. That is, most decisions are made by moving back and forth between the choices of criteria. It’s important to include people affected by the alternatives in the implementation process in order to rally support for the change.
8. Follow up to ensure the effectiveness of the decision. Evaluating the chosen alternative helps managers see if the decision achieves the desired result. If the decision doesn’t meet the desired outcome, managers should reassess the problem and find another possible solution. Bear in mind that not all desired outcome contribute to successful decisions. Many factors affect our decisions and a negative outcome may not necessarily be due to the final decision.
9. Our personal instincts play a big role in decision making. Some studies show that the use of intuition leads to 80% of successful decisions. Many decisions must ultimately rely on or be influenced by intuition because of the remaining degree of uncertainty involved in the situation.
10. Decisions can be based on our personal values. Values shape our behaviors as well as our choices. We learn our values as children and it’s very difficult to change later in life. This is why some people believe that our beliefs guide our behaviors.

The Video Lounge

This video talks about the importance of group decision making. Groups are more effective in making decisions. Factors that influence group decision making include a supportive group environment, members putting group needs ahead of personal needs, group members encouraging differences and collaborating with one another. The six step decision making process is essential in solving problems. These steps are discussed in details and the author explains how we can use them as we solve problems that occur in our daily lives.

Click on the link below to view:

http://www.5min.com/Video/The-Decision-Making-Process-169082939

My Take

The decision making process is still relevant today because of our changing environment. Decision making is an important part of management because making the right decisions differentiates one manager from another. Great decisions lead to positive outcomes and this may not only secure a manager’s job but also establishes confidence and self-respect. In decentralized organizations, managers play a big role in making decisions. On the other hand, employees may not be required to make the final decision at the work place but are also faced with decision making in their daily lives. It’s important that when faced with problems, they analyze the current situation and have the courage to make the final decision. Today companies empower employees to make decisions. This is referred to as employee empowerment. Employees are more responsible for their work performance. Those who continue making the right decisions are more likely to be given a pay raise or promoted to a better position.


References

Decision making. (n.d.). Retrieved from http://www.answers.com/topic/decision-making
Lopper, J. (2007, October 23). Development of personal values. Retrieved from http://personaldevelopment.suite101.com/article.cfm/development_of_personal_values#ixzz0t8rpBtO2
Introduction to decision making techniques. (n.d.). Retrieved from http://www.mindtools.com/pages/article/newTED_00.htm
Williams, R.B. (2010, February 11). What Managers need to know about decision-making . Retrieved from http://www.psychologytoday.com/blog/wired-success/201002/what-managers-need-know-about-decision-making.

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Contact Info

To contact the author of “Top Ten Management on the Decision Making Process,” please email Grace Nabasabala at Grace.nabasabala@selu.edu.


BIOGRAPHY

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also maintains compilations of his student’s publications regarding management concepts (http://toptenmanagement.blogspot.com/), book reviews (http://wyld-about-books.blogspot.com/), international foods (http://wyld-about-food.blogspot.com/).


AN INVITATION TO WORK WITH US, TODAY!

If you enjoyed this publication, why not make one of your own with us! Are you a college or university student from anywhere in the world who would be interested in publishing your work in an edited online journal appropriate to your topic? Such a move can help put muscle into your resume and make a great impression on potential employers and graduate schools (and needless to say – and perhaps most importantly in the age in which we live – likely be the first thing that companies/universities view about you when “Googling” you)! If so, we can help you get that first publication for free (and more if you desire)! Visit Wyld Publishing Services (http://wyldpublishingservice.yolasite.com/) for details. We can work with you to publish your quality essays, research articles/papers, reviews, etc. – and even audio and visual media and PowerPoint presentations – given our network of edited publications and relationship with publishers around the world who want to work with you and your work. Contact us today to get your work published at dwyld.kwu@gmail.com.


Read More:
http://bizcovering.com/business/top-ten-management-on-the-decision-making-process-an-overview-of-one-of-the-most-important-and-necessary-things-that-all-managers-must-do/#ixzz0ubGWgZuG

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Despair.com - Bringing New Meanings - and Laughs - to Management Concepts

Kudos to our friends at the great site Despair.com (http://www.despair.com/) (and yes, they sell cool stuff, too)! Here's the results of their latest make=up a caption for these pics, and their contributors outdid themselves. See below for a LOL moment!


If you haven't checked their website before, they have a great collection of products - and their videos are great too. Not a shill for them, just really think they do cool takes on stuff! Even BP!

David

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Top Ten Management on The Contingency Approach: An Overview of Why The Ultimate Answer to any Managerial Issue is - It Depends

Image via Wikipedia

This overview of The Contingency Approach to Management was prepared by Andrew Easley while a Business major in the College of Business at Southeastern Louisiana University.

Introduction

This article is an explanation of how the contingency approach and its management principles effect and stimulate businesses. It is a report about how styles of management can incorporate one company, but may not be suitable for another. Also how the broad understanding of management cannot be simply categorized as one item that will work 100% of the time. This approach allows management styles to be flexible and adapt to the changes in the environment around it.

The Idea in a Nutshell

The original idea in a nutshell was that management principles where to be universally applicable for all situations. Thus bringing about the contingency approach, this states that organizations differ, are proposed with different situations, and require different types of management styles. If you were to try and sum up the contingency approach in a nutshell you would be left with no simplistic or universal rule to follow for this type of management. This concept leaves the manger up to the task of trying to determine what type of management will work best with their situation.

The Top Ten Things You Need to Know About The Contingency Approach

1. The contingency approach was brought about in the late 1950’s after thinkers who proposed that their approach was inflexible to future changes and challenged the management principles of Henri Fayol and Frederick Taylor.
2. Fred Fiedler, an early adaptor of the contingency approach suggested that leadership styles would vary depending on the situations they were placed. For example the task they were given, the trust from subordinates, and the authority granted to the manager.
3. Location of an organization is going to have adverse effects on the management principles used. If a company decides to expand its reach across the county it’s going to have to change the way it manages its people and environment from one location to the next.
4. Management of an individual is always going to be different in terms of what their idea of growth and exceptions are for themselves. Managers will have to take that into account and then decide the proper way to lead and motive that individual.
5. Environmental uncertainty plays a big factor in the contingency approach, with the ever-changing surroundings management styles must be flexible and able to adapt to things around it. Management ideas cannot be set in stone and expect to survive.
6. A good way to look at the contingency approach is with an “if, then” attitude. Start by saying “If this is my situation, then this is the best way for me to manage it.” With this sort of management style you have to rely on what you know, can figure out, and determine how to solve the problem.
7. Work place technology is ever changing and managers have to be able to adapt and respond to the changes. The way you manage a company that relies heavily on technology, such as tracking and shipping orders will not be the same as a company that uses technology as a sole purpose to send emails.
8. Diversity with clients and employees is going to always demand different forms of management techniques. Whether it is cultural or ethnicity, special care is going to be needed to manage the different individuals.
9. Size of an organization can have an effect on the way it needs to be managed. An example would be of a group of 20 people who may require an informal management approach, where as a group 1,000 people tend to be formal.
10. Managing for the future demands contingency planning. Management styles have to be able to adapt to an ever-changing future. What may work now in this current economic climate may not in the future and management philosophies must be able to adjust.


The Video Lounge

J.T. Allen, the interviewee in the video, talks about how he and his company use contingency planning to help him manage for unexpected future events.




My Take

The contingency approach is an understanding that management cannot be summed up by one perfect management style. Managers have to be able to adapt to many different situations that affect them and their work place on a daily basis. The method is still valid in today’s every changing workplace and will continue to be as long as managers are needed.

References

“Contingency Approach to Management.” Encyclopedia of Management. Ed. Marilyn M. Helms. Gale Cengage, 2006. eNotes.com. 2006. 26 Jun, 2010 http://www.enotes.com/management-encyclopedia/contingency-approach-management.
Coulter, Mary, and Stephen P. Robbins. Management. 10th. Upper Saddle River, New Jersey: Pearson, 2009.

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To contact the author of “Top Ten Management on the Contingency Approach,” please email Andrew Easley at Andrew.Easley-2@selu.edu.

BIOGRAPHY

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also maintains compilations of his student’s publications regarding management concepts (http://toptenmanagement.blogspot.com/), book reviews (http://wyld-about-books.blogspot.com/), international foods (http://wyld-about-food.blogspot.com/).


AN INVITATION TO WORK WITH US, TODAY!

If you enjoyed this publication, why not make one of your own with us! Are you a college or university student from anywhere in the world who would be interested in publishing your work in an edited online journal appropriate to your topic? Such a move can help put muscle into your resume and make a great impression on potential employers and graduate schools (and needless to say – and perhaps most importantly in the age in which we live – likely be the first thing that companies/universities view about you when “Googling” you)! If so, we can help you get that first publication for free (and more if you desire)! Visit Wyld Publishing Services (http://wyldpublishingservice.yolasite.com/) for details. We can work with you to publish your quality essays, research articles/papers, reviews, etc. – and even audio and visual media and PowerPoint presentations – given our network of edited publications and relationship with publishers around the world who want to work with you and your work. Contact us today to get your work published at dwyld.kwu@gmail.com.

Read more:

Top Ten Management on The Contingency Approach: An Overview of Why The Ultimate Answer to any Managerial Issue is - It Depends

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