Organizational structure is a process in which many activities are created or directed to achieve the goals of any organization. These kinds of activities could include responsibilities, roles and rules. The organization structure are also determines how the flow of information is in the company. For an example, in an organized structure the flow of decision is maintained whereas in an unorganized structure the flow of decision is like leaking pipe or very disturbing
The organization structure can help a company to succeed in various ways as follows :
1. An effective and organized structure allows a company to control its business process , it also provides assigning the accountabilities, enables the rapid response for threats and opportunities, gives empower to the employees to make decisions and beat the competition and face the problems (Auchter et al., 2018).
2. Not only is the organization necessary for a company's success but structure is as well as responsible that can influence the management of the project . The company’s organization structure plays an important role for dictating the decision from the top to bottom this could make ultimate managements for projects
However, there are various factors of organizational structure that can lead to the failure of the organization includes -
1. Matrix organization structure can be a biggest factor that can lead to the failure of an organization as it is a structure in which an individual reports too many supervisor or manager.It also provide the main necessity of the worker (Chou & Ramser, 2019)
2. Flat organization structure is another type of organizational structure that can be successful or failure as well for the organization. It is also known as the horizontal organization (Du et al., 2019). This organization has a very little or no middle management between the executive and staff.
So, these are the factors that determine the failure or success of an organization. If the factors are used in an effective manner then only an organization can achieve the goals.
Doing business globally can be very profitable and come with the very exciting advantages like cheap labour, production with low cost, etc and it can create so many new opportunities for an organization to grow and to earn the desired profit. There are several problems as well that are associated with outsourcing the manufacturing to the low cost countries. It involves various factors that can affect the organization’s growth (Brenkert, 2019). The problems that are associated with the outsourcing of manufacturing are generally not in control of the management of an organization. For example, If an Australian company outsources the manufacturing of its products from China’s company, then it will be very hard for Australian company to have a control over the performance and functions of the China’s company that will eventually result in the low quality of the products. There are various disadvantages that an organization faces while outsourcing the product’s manufacturing from the other country’s organization that includes -
1. Transportation Cost - When an organization subcontracts it’s manufacturing work to the other country’s organization or to the low cost country’s organization then there is an undeniable factor that arises in the cost of the transportation. The transportation is very high when it comes to transporting the manufactured products overseas (Rahman et al., 2019). An organization has to bear the high expenses for the transportation.
2. Poor Quality - There are many challenges that occur in manufacturing and that need proper assistance to manufacture the finest products. The barriers of the communication due to different languages that are used in both the countries and the barriers of the time zone can affect the quality.
3. Lack of time management in marketing - The process consumes a lot of time to complete and to transport to the country in which the product will going to be marketed and it eventually increases the time to market the product.
An organization uses the channel of distribution in order to provide the availability of the products to the customer every time and the easy access to the delivery of the products that are directly influenced by the members of the channel. Like customers, marketers also want to compare the benefits of the amount that is paid and must have access to the value that is added to the product (Romanovskaya et al., 2020). In the process of channels of distribution to market the products overseas, the company faces various disadvantages that includes-
1. Loss of control - The biggest disadvantage of the channels of distribution to market the products overseas is loss of control due to the communication barrier. The barriers of the communication due to different languages that are used if both the countries and the barriers of the time zone can affect the marketing of the product.
2. Loss in revenue - The manufacturer always bears the loss in the marketing of the product as it takes a lot of time and the manufacturer has to sell products to the mediator at a very low rate. The process of the channels of distribution consumes a lot of time to complete and to transport to the country in which the product will going to be marketed and it eventually increases the time to market the product whereas, the manufacturer has to deal with the mediator at cost that is lower than the product’s actual price so that the mediator purchase the product (Rahman et al., 2019). The mediator usually earns more than the manufacturer by the process of markup of the product.
3. Loss in the importance of product - There can be loss in the importance of the product as the channel members and the distribution of the products are not in the control of the manufacturer that leads to the delay in the delivery to the customers.
The positional power is the rights and the authorities that are given officially by the management and the organization with a specific post for example, team leader. Whereas, the personal source of powers includes the individual’s own ability that helps him or her to do well as a leader. The positional power can only provide an individual a standard of working and the well known position in the organization but the personal power enables an individual to think critically and to take decisions efficiently for an organization in order to achieve the goals as a leader (Wang & Casimir, 2007). The positional power also plays an important role that includes an individual can make the work done from any team member or an employee because of the power however, a person who has the personal abilities to make work done without giving commands are the best leaders.
Leadership is a quality which enables to guide and to influence a group of people towards a common goal. Quality of the best team leader measures on the basis of improving the team performance after knowing all the positive and negative factors of the team (Wang & Cheng, 2010). A group leader should be present to address issues revolving pressures of personal differences as well as to develop a cohesive environment within the group.
The personal source of power is more effective as an important resource for leaders. All the qualities of the effective leader can only be found in the personal power of an individual because only personal power can help in taking the important decisions for organization, thinking critically, making the team work towards the organizational goals and many more. The positional power can only upgrade the individual’s position and perks in the organization and it cannot provide the knowledge to manage the team and to take the decisions for the organizational goals.
Leaders of the organization are the pillars who build the teams to reach the organizational goals. Mainly leadership refers to influencing the group of people. Leadership includes the key factors such as motivation, communication, and integrity and goal attainment. Leadership has several practices to manage the management of medical and the various principles to manage the work for the organization (Adam et al., 2020). Leaders imply several kinds of practices to get the work done. Leadership is the quality that can help the organization to reach the organizational goals by working in a team. Leadership quality is very necessary for the leader as well as the team members. The leaders also imply the creative practice in the organization that helps in achieving the organizational goals in an effective manner (Chang et al., 2020). The characteristics of creative leaders include -
1. Explorative - One of the major characteristics of the creative leader is to explore that a leader should be willing to explore more about the given projects and the opportunities as well.
2. Innovative - Another most important characteristic of the creative leader is to have innovative ideas that should be implemented and can be beneficial for an organization. Innovative ideas can create a big difference in achieving the effective outcomes in the organization.
3. Critical thinking - Critical thinking enables a leader to take decisions in the most critical situations so that he or she can handle every hard situation that can help the organization.
4. Embracing the changes - The creative leaders should always adapt the changes and work on bringing the essential changes that needed in the organization for the better work environment and the growth of the organization (Koseoglu et al., 2017).
5. Visionary thoughts - Visionary thought is the biggest factor that helps a creative leader to achieve more organizational goals because of the visions. When an individual has clear visions he or she is able to work efficiently and have a creative mindset to reach the given goals.
Adam, J. K., Indradewa, R., & Syah, T. Y. R. (2020). The Leadership Styles Impact, In Learning Organizations, And Organizational Innovation Towards Organizational Performance Over Manufacturing Companies, Indonesia. Journal of Multidisciplinary Academic, 4(2), 63-69.
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Chou, S. Y., & Ramser, C. (2019). A Multilevel Model of Organizational Learning: Incorporating Employee Spontaneous Workplace Behaviors, Leadership Capital and Knowledge Management. Learning Organization, 26(2), 132-145.
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Koseoglu, G., Liu, Y., & Shalley, C. E. (2017). Working with creative leaders: Exploring the relationship between supervisors' and subordinates' creativity. The Leadership Quarterly, 28(6), 798-811.
Wang, A. C., & Cheng, B. S. (2010). When does benevolent leadership lead to creativity? The moderating role of creative role identity and job autonomy. Journal of organizational behavior, 31(1), 106-121.
Wang, K. Y., & Casimir, G. (2007). How attitudes of leaders may enhance organizational creativity: Evidence from a Chinese study. Creativity and Innovation Management, 16(3), 229-238.
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