Tuesday, May 5, 2020

Organizational Theory and Design Organizational Structure

Question: Describe about the Organizational Theory and Design for Organizational Structure. Answer: 1. CISCO implemented a collaborative method instead of the command and control approach to the organization structure, which facilitated greater coordination among the departments and divisions within the business organization. CISCO redesigned its organizational structure by considering the opinions and the managers of the lower- ranked employees in formulating the business strategies in the organization (Argyres Zenger, 2013). As such, these ideas were involved in the decision-making process of the management. The brand adopted a more organic approach to develop coordination among the different executives and personnels working in the organization leading to sharing of ideas and technology. This has bought in more flexibility and innovation at the workplace. To develop collaboration among the employees, the CEO of the organization John Chambers develop cross functional teams among the team members (Cisco", 2016). This has assisted the employees to be more responsible for the job roles in the organization. Argyres and Zenger (2013) mentioned that the cross functional teams have to be set up practical goals in the organization relating to product development as well as the time required for the production and the distribution process in the organization . Team based targets were developed rather than targets of individual targets. Thus, the new approach developed a spirit of team bonding and unity among the employees in the organization. 2. As per the Greiner growth model, the alterations in the Ciscos business operations can be evaluated as follows. Creativity - In the case of CISCO, the CEO of the company was inspired to bring in greater innovation in the workplace. As such, this has helped the business enterprise to overcome the existing threats that has affected the business enterprise. According to Lee et al. (2015), the structural innovations in the workplace have enhanced the productivity rate and ensured smoother business operations. Leadership - CISCO had a rigid hierarchical system, where the opinions of the lower ranked employees in the organization did not had much impact on the decision process. The newly adopted organization structure has enabled the lower employees to achieve more decision-making roles. This was necessary due to the ever-decreasing market share of the brand. Direction - The management at CISCO re-innovated the organizational structure of the company by engaging the lower level employees in the organization. Executives had to work together as a team and collaborate to achieve the collective targets that were pre-determined. Daft (2015) mentioned that the management at CISCO seeks to establish a sense of innovation and flexibility by encouraging different departments to attain the common goals and objectives of the business enterprise. The market value of the brand decreased by $ 400 after the dot.com crisis. There were substantial crisis of autonomy of the employees working in the organization. As such, employees were not encouraged to work beyond their designated roles, which restricted their professional growth. In order to rectify the situation, the brand introduced the organic structure in the organization that shall ensure faster productivity and distribution process in the organization. Delegation The mid-level managers in the organization are being offered greater responsibilities to adjust to the changing market conditions in the global market (Yoo, 2013). They were required to work in a collaborative manner to work towards attaining the common goals and the objectives of the business entity. The delegation of authority and responsibility ensured authenticity as well as transparency in the daily business functionalities of the organization. Coordination and Monitoring CISCO encouraged greater coordination and collaboration among the individual executives belonging to various divisions and departments in the organization. (Daft, 2015) As such, this has helped the business enterprise in creating a distinctive edge among its competitors in the market Collaboration Cisco has introduced a network of cross-functional councils, boards as well as that has enabled the business entity to develop greater collaboration among the employees working in the business organizations (Le et al., 2014). As such, this has assisted the business entity to place greater emphasis on product development and executing the business functionalities as per the short term as well as the long-term goals of the business entity. 3. The new approach has enabled CISCO to overcome its shortcomings, and be one of the leading manufacturers in the networking segment. The brands growth has stagnated in the recent times, which has affected the business sustainability of the brand. According to Daft (2015), the recent changes in the organization structure have assisted the business entity in reducing the operational expenses and exploring newer business segments in the global market. The new strategy of CISCO in facilitating newer teams and departments to work together to achieve common goals and objectives has been proved effective for CISCO in achieving the economies of scale (Yoo, 2013). The new organic approach has strengthened the inherent financial as well as the operational constituents, thereby, leading the growth to further growth and sustainability in the international market. References Argyres, N., Zenger, T. R. (2013). 12. Dynamics of organizational structure.Handbook of Economic Organization: Integrating Economic and Organization Theory, 210. Cisco. (2016). Cisco. Retrieved 4 August 2016, from https://www.cisco.com/ Daft, R. L. (2015). Organization theory and design. Cengage Learning. Lee, J. Y., Kozlenkova, I. V., Palmatier, R. W. (2015). Structural marketing: using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), 73-99. Lee, J. Y., Sridhar, S., Henderson, C. M., Palmatier, R. W. (2014). Effect of customer-centric structure on long-term financial performance.Marketing Science,34(2), 250-268. Yoo, Y. (2013). The tables have turned: how can the information systems field contribute to technology and innovation management research?. Journal of the Association for Information Systems, 14(5), 227.

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