This report develops the issue of ineffective organisational structure, in the context of productivity and innovation, as outlined in the brief. The management function of organising, defined as “the process of arranging people and other resources to work together to accomplish a goal” (Schermerhorn, 2014, p.237) is used to frame the limitations of the current functional structure, and offers matrix and amoeba managed structures as alternatives. Recommendations involve discussing the deficiencies of the current functional structure and the development of a new one with employees, and drafting a new matrix structure with the aim to increase effectiveness across all facets of the organisation, particularly in relation to productivity and innovation.
2. Defining and Framing the Issue
There are a variety of ways to improve innovation in an organisation, through transformational leadership, creative work environments and psychological empowerment (Gumusluoglu, 2009) but for the purposes of this report, the use of organisational structure shall be examined to increase innovative processes.
The current formal organisational structure is consistent with that of a functional structure, which is a hierarchical structure with departments separated into those with similar functions (Roy, 2008), such as HR, assets and operations. The hierarchical structure has a vertical chain of command, which allows each function to specialise (Scheneck, & Alcorn, 2012) (Mueller, 2014). However, this inhibits horizontal communication across departments and often slows decision making (Walczak, 2005) (Scheneck, & Alcorn, 2012). Furthermore, functional structures are better suited to smaller and older organisations operating in stable industr...
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...ucture. Allow employees to express their immediate opinions on the issue, so that these can be considered during the planning process. Ensure attendance is measured, so that all members of the organisation are aware of the restructure.
2. Immediately after the meeting, establish a restructuring team which includes function managers and the senior management team, as well as other experienced employees. Encourage employees to direct further concerns and suggestions to this team, to be considered in the planning process of the restructure.
3. Before the end of December 2016, the restructuring team should draft a framework for the matrix structure, considering input from employees. This should outline the functional and project bosses and where each employee could fit. This draft should be discussed before implementation of a matrix structure at the end of January 2017.
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