Department Of Business Administration Organization Design

Department Of Business Administrationorganization Design And Developme

Department of Business Administration Organization Design and Development- MGT 404 Assignment 3 Course Learning Outcomes: · Analyse the human, structural and strategic dimensions of the organizational development. Assignment Instructions: · Login to Saudi Digital Library (SDL). · Search for the case study entitled as ‘Reorganizing the finance department: Managing change and transitions’ by Anderson, D. (2018). In SAGE Business Cases. SAGE Publications, Ltd. · Read the case thoroughly and make a summary alongside reading Chapter 12 in your textbook before answering the questions of the assignment. Assignment Question(s): Part 1 (3 marks): 1. What are the key reasons behind the reorganizing of the finance department in this foods company? (Words). What do you think the major concerns will be of employees and managers in the new design? (Words). What are the advantages and disadvantages of a gradual versus a rapid transition? (Words). Part 2 (2 marks): 4. Please refer to table 12.5 in Chapter 12 in p.352 of your textbook. Then, choose an example of an organization that uses a product-centric structure. Please justify and explain your answer. (Words).

Paper For Above instruction

The reorganization of a finance department within a company is often driven by multiple strategic, operational, and human considerations. According to Anderson (2018), the primary reasons for reorganizing the finance department in the case study include the need to improve efficiency, adapt to technological advancements, and better meet the changing demands of the business environment. The company recognized that its existing structure was inhibiting quick decision-making, leading to delays and inefficiencies. Additionally, changes in the industry, such as increased competition and regulatory requirements, necessitated a more flexible and responsive finance function to support strategic goals and ensure compliance.

Employees and managers in the new design are likely to have several concerns. Employees may worry about job security, role ambiguities, or the need to develop new skills to adapt to the restructured department. Resistance to change, fear of redundancy, and increased workload are common concerns during such transitions. Managers, on the other hand, may be concerned with maintaining team cohesion, ensuring a smooth transition with minimal disruption, and meeting performance expectations during the change process. They might also be apprehensive about losing control or authority over certain functions as the structure evolves.

Regarding the transition process, a gradual transition involves a phased approach where changes are implemented over time. This approach allows employees and managers to adapt gradually, reduces resistance, and provides opportunities for feedback and adjustments. However, it can prolong uncertainty and extend the period of disruption. A rapid transition, by contrast, involves swift and comprehensive change implementation. This method can quickly realize benefits, reduce prolonged instability, and convey a sense of decisive leadership. Nonetheless, rapid change carries risks such as overwhelming employees, increased resistance, and potential operational disruptions if not managed effectively.

In cognitive terms, organizational structures reflect how companies allocate tasks and coordinate efforts. Referring to table 12.5 in Chapter 12 (p. 352), a product-centric structure organizes activities around specific products or product lines. An example of an organization that adopts a product-centric structure could be a multinational consumer electronics company like Apple Inc. This company groups its divisions based on product lines such as iPhones, iPads, and MacBooks, each with dedicated teams responsible for product development, marketing, and sales. Such a structure supports specialization, innovation, and a focused strategy to cater to diverse customer segments.

Apple’s product-centric approach allows it to tailor its marketing strategies and technological innovations to specific products and target markets, facilitating better resource allocation and brand development. This organization promotes accountability for product performance and enables cross-functional collaboration within each product division. By focusing on individual product lines, Apple can swiftly address market changes and customer needs, which is crucial in the highly competitive technology industry. Thus, the choice of a product-centric structure aligns with Apple’s strategic goal of innovation leadership and product excellence.

References

• Anderson, D. (2018). Reorganizing the finance department: Managing change and transitions. In SAGE Business Cases. SAGE Publications, Ltd.
• Daft, R. L. (2016). Organization Theory and Design (12th ed.). Cengage Learning.
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• Kolodny, L. (2020). Apple’s organizational structure and culture. Harvard Business Review.
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