Industrial Tech Report
A company within your focus area is looking at expanding. Discuss the structural, technical, personnel, OHS and environmental factors that they need to consider prior to expanding their business.
Business expansion is part of the growth process of a business, but before executing the expansion process the business needs to consider various factors such as structural, technical, personnel, OHS and environmental in order to achieve a successful expansion.
When a business expands, the business has to consider and evaluate the possible affects upon the structural organization, management and restructure if necessary to meet productivity and efficiency. As the business expands, the size of business will increase along with the number of employees. It is important for a business to deliver its messages and orders clearly and efficiently throughout the business. If not, the business will waste time on solving disputes and lose profit due to low productivity from the efficient delivery of messages and poor communication. To solve this problem, the business will have to come up with the most suitable organization structure have efficient management which leads to productivity and efficiency. The first structure is the hierarchical structure. This structure specializes in accountability, authority, a rigid lines of communication, and specialization of labour. This structure will group people according to the specialised functions they perform and even within each function areas there are further sub-divided into specialised jobs. This allows for greater productivity through specialization of labour, as each worker is good at what they do, so they can do it faster and better. This also allows for chains of command, a system that determines responsibility, supervision and accountability of members of the organization. A example of this structure is Ford, with it’s assembly line of specialised workers in stations and a pyramid shaped structure with three levels of management team ranging from top executive management team to middle management team to supervisory management team. This structure is great for output heavy businesses with large amount of employees, as it cannot only improve productivity; it also improves efficiency of management and communication. So if this business is an output heavy manufacturing business, this organization structure is highly encouraged.
The second structure is the flatter organizational structure. This structure “de-layers” the management structure resulting in the elimination of one more management levels, most commonly the middle management level. This organizational structure allows for self-directed work teams, allowing higher management levels to work closer with its lower levels. This structure negotiates, consensus decisions rather than imposing demands in the hierarchical structure. The role of managers in this structure is to achieve their aims by balancing the needs of the team with those of the business. This can be accomplished by attempting to understand the views of others, handling disagreements honestly and directly, and persuading others to adopt new ideas. Above all, the manager build a sense of trust, with a more participative or democratic leadership style rather than autocratic leadership style. With this structure, productivity can also be improved through worker satisfaction and good working environment, and the management is shared amount each group and the workers themselves, but there is still a higher management level just to keep things together. An example of this structure is Google, Google allows employees to work as a team for each project rather than each individual person working on a different piece of work. Also the workers are highly motivated through the good working environment and the easy communication between
higher and lower management level which all improves productivity...