Emerging Concepts in Organizing and Design

In the twenty-first century, business consolidation through joint ventures, mergers, partnerships, and acquisitions has grown in importance. Teamwork, networked relationships, virtual functioning, and other novel and developing ideas have changed managers' views on their organizational structure.

Managers cannot blithely deploy the old hierarchical structure that was prevalent in the first half of the 20th century in this newly emerging situation. The one-size-fits-all traditional framework ruled throughout that time. The idea that adapting organizational structures may be a prerequisite for competitive success has dominated the early 21st century. The following are today's new concerns and methods in organizational design:

• All of the structures discussed in this chapter, with the exception of matrix, team, and network organizations, center on the vertical organization. In the modern world's settings that are changing so quickly, such vertical integration could be problematic. The conventional idea of organizational design has also changed in light of the newly developing organizational practices.
• The organization's various components/bodies are interconnected and dependent on one another. The goal of fundamental advancements over the past 20 years has been to better understand the nature of relationships and interdependence and how they affect businesses' operations. De-emphasizing vertical reporting linkages may be the only strategy to flatten the organization and strengthen horizontal ties. This is a downsizing technique that aims to improve communication and decision-making by streamlining the organization as well as reducing the number of employees.
• Another way to affect the idea of organization design is through technology. Within a company, the usage of computers and group collaboration tools can improve communication and decision-making. Boundaryless organizations and virtual organizations are now possible because to the quick development of such technologies.
• Now, by contrasting the organic model of organization with the mechanical model, which is defined by job specifications, set rules and procedures, and centralized authority and accountability, a different viewpoint on the issue of interdependence may be observed. The organic approach, in contrast, de-emphasizes specialization, which is generally informal, and decentralizes power. As a result, it is rather easy. All levels of the business share the processes for making decisions and creating goals, which promotes effective communication.
• Creating diverse teams is a typical practice today. Self-directed work teams are established by organizations as the fundamental unit of production. Teams made up of members from different organizational levels may be created. This type of organizational structure is thought to be more productive and motivating for workers.

Emerging Approches to Organizing

As a result, a variety of fresh notions and ideas, particularly after the 1990s, have been emerging in relation to organizing. Here are a few of these newly popularized beliefs, ideas, and methods:

• Team Structures: Today, teams are thought to be the best way to arrange job activities. Departmental barriers are removed thanks to the team idea, which also decentralizes decision-making to the level of the work team. A small group of people work together as a team. Teams are created at the operational levels of larger businesses to increase production and attain flexibility. Workplace teams might be self-managed, virtual, or problem-solving teams. These teams have clear objectives, coordinated efforts, decision-making power, shared leadership responsibilities in problem-solving sessions, individual and shared accountability, etc. They are allowed to plan and carry out their task however they see fit. In addition, the teams are accountable for all work, activity, and performance outcomes in their corresponding fields.

• Virtual Organizations: These organizations are also known as networks. Outsourcing managerial tasks is at the heart of virtual organizations. Virtual businesses have a strong centralization. They hardly have any departments. These businesses establish a network of connections that enables them to outsource practically all managerial tasks, including staff management, distribution, marketing, and accounting. These tasks are outsourced if management believes that outsiders can complete them more effectively and affordably. So what is left of the company? really little They are referred to as virtual organizations for this reason. The focus of management should be on strategies and coordination. A virtual company has many benefits, including minimal costs, quick responses, and flexibility. These network topologies are now being used by an increasing number of US and Japanese organizations.

• Boundaryless organizations: Barrier-free or modular organizations are other names for boundaryless organizations. Information flow is not restricted in a boundary-less organization. Important concepts, facts, choices, and deeds go where they are most required. Therefore, a boundaryless organization aims to do away with the concepts of a chain of command, have an unlimited range of control, and empower teams in place of departments. By deleting vertical divisions, management flattens the hierarchical structure. Cross-functional teams are set up to eliminate departmental boundaries on the horizontal plane. Similar to how exterior limits have been eliminated by expanding globalization and strategic alliances. People who are connected via computers, taxation, computer-aided design systems, and video teleconferencing make up boundaryless organizations. They seldom ever interact face to face. Although they are not formal employees, people are used when their services are needed. They are functional experts who band together within a company and carry out their contractual commitments.

• Organizational Rightsizing: Rightsizing refers to the deliberate elimination of posts or occupations. Eliminating roles, organizational levels, or units is a common reduction strategy. Therefore, it is the deliberate process of become smaller, thinner, and smarter by cutting back on staff or closing down departments or businesses. This is a technique for reforming an organization. The organization's size is reduced as a result of the restructuring. This results in the structure becoming flattened. To enable them to react more quickly to the pace of change, organizations are being made leaner and more flexible. So, the goal of shrinking is rightsizing. In order to cut costs and improve efficiency, organizations are currently trending toward closing or consolidating businesses and reducing their overall headcount. Downsizing techniques include: (1) firing; (2) transfers; (3) shorter workweeks; (4) early retirement; (5) layoffs; and (6) job sharing.

• Process Re-engineering: In the early 1990s, this idea first surfaced in management literature. In order to make improvements in crucial areas like cost, quality, service, and speed, it is concerned with the radical restructuring of business processes. Process reengineering is currently a highly well-liked design tactic. This idea has arisen in order to reinvent and reevaluate organizations in order to increase productivity and performance. It is an approach that takes into account how an organization would be formed if it were being built from beginning. Process re-engineering can boost productivity and efficiency by eliminating time spent on tasks that don't generate revenue. If done right, it can significantly increase productivity. The following are crucial aspects of process re-engineering:

  • Work procedures are the main subject.
  • It is an innovative approach to process improvement.
  • Both individual and corporate processes are covered.
  • It seeks to emphasize contents that offer value while minimizing those that do not.
  • The work processes are being redesigned in an effort to increase performance.

• Learning Organization: This is a novel idea in arranging as well. This idea is founded on learning and knowledge. This idea states that a learning organization is one that has honed its capacity for learning, adaptation, and change in response to internal and external environmental changes. All members of this organization take an active part in learning and imparting new information. The critical component of this idea is creativity, interpersonal relationships, openness, etc.

Reference

(Pant, P.R. (2013). Principles of Management, Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd.)