Management Theory and Practice

Question 1: Organizational structure

Introduction

The success of an organization largely depends on the type of structure employed. Organization structure refers to the plan that describes how different functions within the organization are organized and coordinated. The choice of organization structure varies from one organization depending on the roles and size of the organization. It is imperative for organizations to ensure that their organizational structures determines the different duties involved and delegate them efficiently to the different players within the organization (Rudani, 2013). It is an integral part of the organizational success since it ensures that all that should be done is done effectively and efficiently. The most common types of organizational structure include matrix, functional and divisional structures as discussed below;.

  1. Functional structure

This is a form of organizational structure that is also commonly referred to as a bureaucratic organizational structure. In this structure, the organization is divided based on specialty between the different functions within the company. It is the most common form of organizational structure employed by different companies. There are several departments depending on the objectives and goals of the organization. For instance, there could be human resource, marketing, finance, information technology, production and sales among others depending on size and the nature of the organization. It is a popular form of the structure where organization feels that specialization and operational efficiency is realized (Lewis, 2007). All the subunits in the functional structure are answerable to one manager or the president of the organization.

The functional structure is widely used in most organizations due to the many advantages that come along. The functional structure is associated with increased specialization where specialists are brought together. On this note, the organizations can realize economies of scale and also there is reduced duplication of resources. Employees also have an opportunity to interact freely with leaders in their units and also have the opportunity to share views with their peers. This creates a conducive environment where productivity is also expected to increase substantially. The simplified nature of a functional structure allows effective and smooth information flow and coordination of activities (Rudani, 2013).  The integration of personnel within the same department allows employees to expand their expertise through sharing skills. Organizations that implements functional structure are also said to have improved problem-solving capabilities since there is an element of quick decision making.

Nevertheless, the functional structure has some disadvantages that organizations intending to use should be greatly concerned. The element of specialization could be detrimental to the organization. This is because most of the employees in a functional structure have no knowledge and concern outside their functional area (Cole & Kelly, 2015). There are chances that there could be a communication barrier between members of the different units within the organization. With minimal communication among the different sections of the organization, it is also possible to have problems in cooperation and coordination. This is because employees will always strive to achieve their departmental goals disregarding the overall organizational goals. The functional structure can also lead to increased chances of internal conflicts due to a communication breakdown between the different functional areas. It is also prudent noting that as the organization grows, it becomes difficult to sustain a functional structure since there is an increase in the functional areas. The increase in the number of functional units may make the subunits look like small companies within the large organization.

The figure below is an example of functional structure

CEO

HR             FINANCE       MARKETING         IT                      PRODUCTION

 

  1. Divisional structure

Another major organizational structure common in modern organizations is the divisional structure also known as a multidivisional structure (Lewis, 2007). It is a form of organization structure where organizations split its operations into some units referred to as divisions. The divisions are classified on the similarity of products/services, projects or markets. Each of the division in the organization has all the resources to pursue the division’s goals and objectives without reliance with other divisions. It is, however, imperative noting that the divisions are answerable to the organization’s central authority despite their independence in pursuing their daily operations. This form of structure is mostly used by large multinational companies such the coca cola and General Motors’ who offers their products in different parts of the world.

As aforementioned, a divisional structure is advantageous especially to large organizations. It gives each division the chance to specialize and concentrate on a particular line of product or market. For example, the coca cola company division that deals with the Asian market can focus and concentrate on improving the products presence in the said market. It is also imperative noting that the structure gives the organization a platform for easy problem solution, especially on technical problems. This is because employees in each division can freely interact and have free information flow thus enabling quick decision making. Additionally, they have specialized knowledge and skills best suited to solve their problems (Rudani, 2013). It is also prudent understanding that the divisional structure also offers a great deal of flexibility where heads of each division run the operations of the division without the pressure from the central organization.

Besides the many advantages, the divisional structure also has some notable disadvantages.  One of the major drawbacks associated with this kind of structure is the duplication of resources in the different divisions. All the divisions in the organization have a similar number of employees and other essential capital used to manage the division. It is also worth understanding that the divisions limit the sharing of expertise across divisions (Cole & Kelly, 2015).  Divisional structures have different personnel and have no chance to share their views on the overall development of the organization. On this note, there are also increased restrictions on innovation across the divisions since at times they seem to be competing against themselves.

The figure below is an example of divisional structure;

BOARD OF DIRECTORS

 

 

NORTHERN DIVISION              EASTERN DIVISION         SOUTHERN DIVISION

 

 

FUNCTIONS

 

  1. Matrix structure

This is a form of organizational structure that is mostly used in large organizations. It is a mixture of both functional and divisional structure that allows benefits of efficient departmental structures in one organization.  It is a common organizational structure that is said to suit the modern complex business environment. The matrix structure is considerate of geographical, technological and functional structures that within the organization. Both the technical and project goals within the organization are adequately covered by the matrix structure (Lewis, 2007). This type of organizational structure ensures that technical advantages, as well as the goals of the organization, are realized. There is increased specialization that ensures a smooth operation flow within an organization.

As aforementioned, matrix structure allows vertical and horizontal division of authority. It is also imperative noting that it allows division in the project and functional areas where a group of employees is answerable to a project supervisor and a functional supervisor. The functional supervisor has the responsibility of overseeing all the employees in the in the functional unit. On the other hand, a project supervisor will have the responsibility for managing and implementing a project (Rudani, 2013). Essentially, the completion of a task within a matrix structure will involve a collective contribution of employees from different functional units.

It is imperative noting that matrix organization structure has both its advantages as well as its disadvantages. Some of the structures strengths include high levels of specialization, effective resource coordination, efficient information flow, diverse skills and high levels of flexibility (Cole & Kelly, 2015). A matrix structure ensures that there is maximum utilization of expertise within an organization. Increased specialization gives an opportunity to employees to specialize in a specific field within the organization. Concerning effective communication, the matrix structure allows smooth information flow in the different department and functional unit. It is also easy to evaluate the progress made towards the realization of organization goals.

Nevertheless, the matrix organizational structure has its shortcomings. One of the major weaknesses of the matrix structure is the fact that responsibilities and jurisdictions are not clearly defined. With this in mind, there are high chances that could be chaos in organizations where matrix structure is evident. This increases internal complexities especially on the employees who are mainly confused as to who is their direct supervisor. It is also an expensive structure for an organization to maintain since it is a structure where there is the duplication of management issues (Lewis, 2007). The increased competition for resources in matrix structure can lead to internal conflicts within the organization. It is, therefore, imperative for organizations to have a strong and well-defined communication process to ensure that a successful project completion is realized. There must be great cooperation between functional supervisors and the project supervisor top reduce chances of conflicts in the organization. In essence, effective matrix structure in the organization can only be realized if there distinct communication strategies within the organization.

The figure below is an example of matrix structure:

CEO

FUNCTIONAL              FUNCTIONAL              FUNCTIONAL              MANAGER OF

MANAGER                     MANAGER                   MANAGER                  PROJECT MANAGERS

 

Conclusion

As earlier mentioned, the success of the organization will to a great extent be determined by the organizational structure evidenced in the organization. It is, therefore, prudent for the organization to make a choice on the best structure that will steer the realization of the organizational goal. It is also important noting that there are some organizations that use a hybrid structure that encompasses several structures (Cole & Kelly, 2015). The size, requirements and nature of operations within the organization should be the guiding principles in the choice of organizational structure.

 

 

Question 2: Important decision (Career choice)

Introduction

Career choice is one of the major decisions that every person makes in life. It becomes an important decision since it is through different careers that people makes their survival easy.   Despite being an important decision, most people have found it being a difficult exercise where most people find themselves different careers from which they wanted to pursue. It is, therefore, imperative that we should embrace good decision-making mechanisms that will ensure that we are in careers of our choice and live comfortable lives (Lore & Spadafore, 2008). A good career is the one that gives total satisfaction regarding earnings and other aspects of life.  In this chapter, I will discuss at length how I made my choice to pursue a career as a Business Analyst.

Why a business career?

I was not guided or counseled in the career choice, but I decided to take the path that would fulfill my passion. My passion for management and leadership roles is immeasurable. It is on this premise that I aspire to be a management analyst as my career in future. This is good profession that is involved in offering consultative services to organizations that intend to improve their performances, productivity, and efficiency. The primary objective of management analysts or management consultants is to give insights to managers on how to increase profitability in their organizations through cost reduction and increased revenues (Lore & Spadafore, 2008). This career has been of interest to me over the years due to my willingness to see successful organizations. I feel disappointed seeing an organization collapse due to mismanagement of resources in an organization. I also like an outgoing career and management analysis will give me an opportunity to travel all over the world as I make good income.

How I made the choice

Management analysis requires one not to be an academic dwarf. An analyst is expected to deal with learned managers and company executives thus making is imperative to have a good educational background.  It is paramount to have a bachelor’s degree in business management. It is also worth noting that acquiring a Certified Management Consultant (CMC) designation will be an added advantage in this career. It will, therefore, be essential for me to pursue a degree and a professional course that will equip me with the necessary skills for this profession.

The profession is also known to demand certain characteristics and values that make the professions in this career successful. For instance, the profession requires persons of integrity and high levels of openness.  It is evident that people in this profession are expected to offer assistance to managers and executives in organizations on how to improve the productivity of these organizations (Lore & Spadafore, 2008). Lack of integrity and openness in this career can be detrimental since an inappropriate advice can lead to irreparable damages. Additionally, people in this profession must be smart and intelligent to be able to detect areas of improvements and make suitable recommendations.  It is also critical for professions in this field to possess communication skills that will help deliver the recommendations in the right way. I am strongly convinced that these values and characteristics are some of my strengths that make me a suitable candidate in this field.

The job outlook for this career looks promising in coming years. Employment of management analysts is projected to grow 19% by 2022. This deemed as the fastest growing sector as compared with other occupations. The projected growth can be explained by the increasing number of organizations that require services that will help them increase efficiency and reduce costs. Nevertheless, the completion in this field is also expected to be even stiffer in future due to the inviting earning potential in the sector. This calls for extra talent and high academic qualifications to remain relevant in the dynamic job market. Professions in this field may join an institute of consulting that brings together consultants in different fields (Lore & Spadafore, 2008). The professional body has the responsibility of ensuring that members hold high ethical standards and has qualifications to offer such services.

My SWOT analysis

SWOT analysis is an important aspect of my career development. This is because it gives an opportunity to know the strengths and opportunities and take advantage of them. On the other hand, it also provides a platform of mitigating weaknesses and threats to career development. The table below summarizes my SWOT analysis;

 

Strengths Weaknesses
I have great communication skills

I am very creative and innovative

I am capable to ask questions to find the correct strategy

Completely committed to the success of my clients

 

 

I am easily stressed by huge work load

I easily get irritated and thus I might find it difficult dealing with misunderstanding clients.

Opportunities Threats
The number of organizations in need of consultative services is on the rise.

Acquiring post graduate education critical to enhanced competitiveness

Emergence of new talents is a threat to job outlook.

The global economic climate is deteriorating and could hamper organizational development.

 

What I am doing towards fulfilling my career goal

As earlier mentioned, the decision on the career is an imperative decision. On this note, I am working tirelessly towards ensuring that I will achieve the desires of my heart. This requires me to be proactive to ensure that nothing hinders me from realizing my choice. After analyzing all the requirements and my strengths and weaknesses, I have decided to take the appropriate steps to enable the realization of my goal. As a result, I decided to take a bachelor’s degree in a business related course in one of the most reputable universities in the world. After completing my undergraduate, I realized that the job market was very competitive, and thus more skills and expertise would be to my advantage. It is on this premise that I am currently pursuing my post graduate degree in MBA to ensure that I remain as competitive as possible. I am also planning to take a professional course to increase management and analysis skills that are fundamental in this career path.

Additionally, I am also trying to connect with other professionals in this career path. I have been searching for graduates and employees in this field to gather more information on this career. The main objective of this exercise is to get insights on what to expect when pursuing my career choice (Lore & Spadafore, 2008). I have managed to contact several management analysts on LinkedIn and others face to face where we have discussed different issues to expect in the career.  I have also learned of the challenges expected in this career, and I am working hard to ensure that I can deal with such challenges. Some of these professionals will also be of great help regarding internships where I can get important tips on how to offer analysis services. Apart from the professionals, I have also been discussing the matter with friends and family members who have also been of great importance to career development. Though I have been listening to advice from all these sources, my career choice has not by any way been influenced by these pieces of advice.

Additionally, I have also been engaging in a self-awareness exercise where I have been working on improving my weaknesses as well as improving on my strengths. I have been developing my management skills by providing leadership to my peers and classmates. I have also been actively involved in major analysis projects and making recommendations aimed at improving the efficiency of different projects (Lore & Spadafore, 2008). Also, I have been working on enhancing self-control to reduce my tempers as also improve my communication skills that are also essential in the realization of my career. It is also my passion to continue discovering my other interests and passions that can be of significance to my career choice.

Conclusion

After extensive research and self-analysis, I am still convinced that management consultant remains my career path. I will work tirelessly towards realizing this objective by pursuing the relevant academic qualifications.  It will also be prudent to work on personal limiting factors such as hot tempers to ensure that I pursue my goal to the fullest (Lore & Spadafore, 2008). In essence, making the decision should be a personal affair and one should always follow his/her dreams. A career choice is an important choice in life, and any mistake could be very costly. It is, therefore, prudent to ensure that one follows a systematic approach in the decision-making process.

 

References

Cole, G., & Kelly, P. (2015). Management theory and practice. London [u.a.]: Cengage Learning.

Lewis, P. (2007). Management. Mason, OH: Thomson/South-Western.

Lore, N., & Spadafore, A. (2008). Now what?New York:  Simon and Schuster.

Rudani, R. (2013). Principles of management. New Delhi: McGraw-Hill Education (India).

 

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