Organizational Structure and Performance Case Study

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¶ … organizations merge what types of structural issues do you think might need to be addressed?

Mergers and acquisitions instantaneously impact businesses with alteration in ownership, in philosophy, and ultimately, in practice. Of these three core strategic assets, cultural unity is most frequently the vital asset in the ultimate accomplishment or failure of the overall deal and the one that influences the degree to which qualitative talent maintenance can be achieved. Merging companies are often compared to the institution of marriage. When two people get married, they are essentially merging cultures that posses distinctive backgrounds, principles and histories. When two organizations merge, the same philosophies hold true. As with any kinds of merger, it is significant that the decision makers respectfully converse outlooks, objectives and limitations (Kohl, 2008).

Mergers will often result in troubles in the market and also to the workers and investors; these troubles comprise loss of work, discouragement of workers, loss of investor assurance and a turn down in the market along with many other issues. It has been found that it is obvious that mergers often will result in more troubles than any returns that are achieved. Designed mergers unfavorably distress workers of the merging organizations, the merge progression is a sluggish course and influences the workers of both companies, when declarations are made about the merge of organizations the operational atmosphere in those firms alter, employees are perplexed and nervous about what will occur when the merge goes through and this decreases output of these employees, employees also feel let down and consequently mergers will result into diminished worker faithfulness. Both organizations will consequently report reduced performance due to diminished efficiency and competence throughout the merger negotiation procedure (Why Firms Merge and the Problem They Cause, n.d.).

Mergers often entail major reformation of the companies structure of the new organization to be fashioned, this is due to the information that merging companies will eradicate duplicate procedures as a method of reducing production expenses, as a consequence of this workers will loose their jobs for the reason that of this reorganization. The merge procedure often leads to indecision amid workers concerning the influence of merger on their vocation and job, for this rationale thus workers spend more time thinking about their vocation and job rather than their jobs and this will decrease the output of the workers in both firms (Why Firms Merge and the Problem They Cause, n.d.).

Executives and other top positioned workers in both firms may be disadvantaged in their power following the merger. This is an agonizing procedure and may have an effect on their performance subsequent to the merger. This procedure discourages such workers and performance of the new organization fashioned may be even inferior. Mergers also entail a procedure that takes time to complete, much time and assets are spent in the procedure which may unfavorably affect the performance of the organization, executives focus on the negotiation course instead of the companies operation and this will result in poor performance of both organizations. Throughout this negotiation procedure the employees in both companies will spend the majority of their time talking and wondering about what will take place following the merger and for this cause there will be diminished performance in the firm (Why Firms Merge and the Problem They Cause, n.d.).

2. What role do you think organizational structure plays in an organization's efficiency and effectiveness? Explain.

The structure of a company is the organization of working relationships that splits and organizes the responsibilities of people and groups functioning with a universal principle. The majority people envision an organization's structure in provisions of the familiar organization chart. Nevertheless, structure is far more than that. It entails the division of labor, comprising roles, accountability, and power, as well the organization of labor into units and inter and intra-unit alliances. When one looks at the structure of an organization, they will want to see if it makes possible or holds back the accomplishment of the mission and objectives (CHAPTER 4 Diagnosing the Performance of Your Organization, n.d.).

A company's performance is made evident by way of the actions it performs to attain its mission. Outputs and their influences is the most visible feature of a company's performance. Thoughts about the notion of performance differ significantly. Each interest group or stakeholder may have a completely dissimilar idea of what matters. For example, managers may describe the company's performance in terms of the amount of money brought into the company through grants, while a donor may describe performance in terms of ones organization's beneficial influence on a target group. Very few companies have performance information that is easily obtainable. Yet, it is typically not hard to produce this data from accessible information or to expand instruments for collecting this information. Data collecting is often automatic and scientific. It is far trickier to get agreement on the qualities of exacting performance information and markers. It is even harder to arrive at value decisions concerning satisfactory levels of amount and superiority for each performance gauge (CHAPTER 4 Diagnosing the Performance of Your Organization, n.d.).

A company must be capable not only to offer outstanding services but they also have to supply them inside a suitable price arrangement. Performance is more and more judged by the competence of the company, for instance, the price per service, the amount of outputs per worker, the quantity of outputs per person per year and the average worth of grants per person. No matter what the overall dimension of the unit, performing firms are seen as those that supply good worth for the money in both quantitative and qualitative provisions (CHAPTER 4 Diagnosing the Performance of Your Organization, n.d.).

A company does not survive in a vacuum. It is positioned in a nation and area to which it is inextricably connected. It functions within a lawful and enriching circumstance. These and other outside atmosphere variables affect how a company functions and what it generates. Such variables can form the manners in which a company defines itself and the ways it classifies good performance. A company must conduct an investigation of the outside surroundings in order to appreciate the outside influences that help to shape their company. The key elements of the outside surroundings that affect their organization are the managerial, lawful, political, socio-cultural, financial, technological, and stakeholder elements (CHAPTER 4 Diagnosing the Performance of Your Organization, n.d.).

The human resources department of an organization includes all staff, professional, administrative, technological, and support engaged in any company's actions. A company's human resources are possibly its most precious resource. This is predominantly accurate if the people necessary to do the foundation work of a company are extremely skilled people. The human resource management role of a company is accountable for making sure that people's needs are met. This is not simply an unselfish task, staff members who are sensibly contented with working circumstances and encouraged by the atmosphere are highly expected to be productive. Human resource management is accountable for scheduling; recruitment; human resource growth; appraisals and rewards; and upholding successful human resource associations (CHAPTER 4 Diagnosing the Performance of Your Organization, n.d.).

3. Would a mechanistic or a more organic structure be appropriate for Indigo? Why?

Organic and mechanistic structures are on completely opposite ends of the continuum. The term organic structure is utilized to explain an organizational structure that is planned to encourage flexibility so that workers can instigate alteration and acclimatize rapidly to altering circumstances. This flexible structure is more like a group atmosphere in which all the workers are capable to do any of the responsibilities. The term mechanistic structure is utilized to explain an organizational structure that is planned to encourage workers in order to perform in expected, answerable behaviors. Every one of the workers functioning in a mechanistic structure have doled out tasks that they must carry out and are forbidden to take on extra duties unless they are told so by upper management (Organic Structure vs. Mechanistic Structure, 2007).

In regards to Indigo an organic structure would be the best to have because of the flexibility that it provides. In a merger situation there is always going to be resistance to change. A quantity of organization level resistance to alteration comprises authority and disagreement, dissimilarity in functional orientation, mechanistic structure, and organizational culture. In order to avert authority and disagreement from interfering with the expansion of the new processes, one will have to notify the company as a whole of the alteration that is being put into place. Departments often describe troubles in a different way than each other which will interfere with the alteration being put into place. Mechanistic structures are so conventional that most if not all workers will oppose change. The workers in this structure are allocated definite responsibilities they must accomplish. Organizational cultures may oppose alteration since they depend on their previous principles and attitudes that the company educated them. It is often tough to alter the principles and attitudes of… [end of preview; READ MORE]

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