University of Phoenix/MGT/311
February 17, 2012
Organizational structure has become a vital asset for most thieving business in the world today. Its main purpose is to define how job task are formally divided, grouped, and coordinated within a company (Robbins & Judge, 2011). Riordan Manufacturing has decided to change the way their organization is structured through the implementation of a more formal management system to help achieve company goals. Formal and Informal Power Structures
Riordan Manufacturing has decided to create a more formal system recently to manage their customer information. This type of organizational structure will allow managers to monitor or control different work assignments delegated to different employees from the top to the bottom. This will be a change from the informal organizational structure used previous to manage customer information within the company. Informal organizational structure within an organization can cause huge concerns with co-workers because there is no one person in charge, and the work assignments can be carried out with no urgency or seem less important to others within a group setting. Appropriate and Effective Organizational Structure
With Riordan’s focus on one customer management system the most appropriate and effective organizational structure would be the chain of command. “The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom” (Robbins & Judge, 2011, p. 491). Each level of employee will have the same deciding power as another employee of the same level. Riordan will decide how much deciding power a certain level shall have from the bottom-up when concerning its customer management system so that the chain of command can be developed and implemented. Potential Effects on Employee Behavior
A potential effect on employee behavior when implementing the chain of command will be a power struggle. This power struggle will come primarily from those employees who because of the new chain of command have less deciding power than what he or she is accustomed to before the change. The perceived lack of power the employee may have could bring his or her morale down. During the implementation it will be crucial for management to help this employee understand he or she will still have deciding power to keep the customer management system functioning properly, just not as much as before the implementation. Characteristics of Company Culture
Every organization deploys tactics to positively influence the various elements of its organizational culture. Organizational culture refers to a system of shared meaning possessed by members that distinguishes the organization from other organizations (Robbins & Judge, 2011). After completing an organizational study of Riordan Manufacturing’s human resources and marketing information reports, it is quite evident that the company maintains a culture that provides a catalyst for employee success. Despite a small number of substandard individuals, employee performance reviews on personnel at all four branches illustrate consistent proficiency, quality and quality of work, and teamwork. In fact, significant improvements were highlighted over two or more reporting periods. Evidently, accurate performance feedback within the organization fosters a culture that not only boosts innovative ideas and reinforces positive moods, but also influences stability and team orientation amongst employees. In addition, Riordan Manufacturing’s managers employ tactics to effectively benefit from their diverse workforce, which is essential in achieving their objective to reach the $50 million revenue mark. Potential Source of Resistance to Change
Every organizational culture will experience “change”...