Organization Frame

March 25, 2019

Golden Papers

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* Structure represents an organisation’s efforts to align internal workings with outside concerns. It represents a resolution of contending claims from various groups within the organisation. Structures are a blueprint for officially sanctioned expectations and exchanges among internal players and external constituencies. * * The structural frame upholds the notion that organizations are judged primarily on and by the proper functioning of those elements which constitute good organization:

Giving appropriate emphasis to the process integrating people and technology. 2. And enabling the organization to achieve its goals. * * Designing an organizational structural frame depends on prevailing circumstances and considers organisation’s goals, strategies, technology, people and nature of environment. It can be designed through Differentiation i. e. division of labour or Integration i. e. coordination. * * Role of Structural frame in an organization: * Most “people” problems really stem from structural flaws rather than from flaws in individuals.

Lack of structure in an organisation often misdirects energy and resources. Without an organizational structure, people become unsure about what they are supposed to be doing. The result is confusion, frustration, and conflict. Structural managers and leaders are not necessarily authoritarian and do not necessarily solve every problem by issuing orders (though that will sometimes be appropriate). Instead, they try to design and implement a process or structure appropriate to the problem and the circumstances.

Therefore, the fundamental responsibility of managers and leaders is to clarify organizational goals, to attend to the relationship between structure and environment, and to develop a structure that is clear and appropriate to the goals, the task, and the environment. In an effective organization, individuals are clear about their responsibilities and their contribution. Policies, linkages, and lines of authority are well-defined. When an organization has the right structure and people understand it, the organization can achieve its goals and individuals can be effective in their roles. * An organizational structural frame determines that how an efficient and effective organization: 1. Functions 2. Achieves and surpasses goals 3. Survives and thrives in an environment 4. What competitors emulate * * All the structural elements including hierarchies, policies, procedures, rules and assessment when aligned with people, process and technology ensure that:

1. The structure will support the work. 2. The organizational structure and workforce will complement one another. 3. Efficiency and effectiveness will create the circumstances for achieving the organization’s goals. * Example of Structural Frame in Action: * * The two most successful organizations, McDonalds and Harvard have developed different structures. * * McDonald’s organizational frame rests upon clearer goals, more centralized and tighter performance controls. While Harvard’s organizational frame is designed on the basis of diffuse goals, highly decentralized and high autonomy of professors. * * McDonald’s has two structures at two different levels; the first is at the corporate level and the second, restaurant level. The corporate’s current design type is functional while the restaurant’s current design type is divisional.

Hierarchy in McDonald’s corporate structure consists of the Chief Executive Officer (CEO) on top followed by the chairman of the board to the board of directors. Legal and secretary comes after, followed by human resources to President of APAC and MEA which refers to Asia Pacific, Middle East and Africa where McDonald’s franchises first opened during the 80s and 90s. Standing 8th place in the hierarchy is Chief Operating Officer (COO) followed by Chief Financial Officer (CFO) to sales and finance managers (Leadership 2012).