The Management of Innovation, Essay Example

The kind of organizational structure the management adopts is very critical to the success of an organization. At times, some factors may call for a review of an organizations structure. In this case, the organization is characterized by outdated product line, adversarial communication and competition for resources internally. Outlined below is how I would deal with each of the above weaknesses.

Dealing with adversarial communication

For information to have value, it must reach the decision makers at the right time and in undistorted manner. The decisions made must also reach their implementers at the right time. Communication is therefore a very vital tool as far as sound financial performance by an organization is concerned. In this case I would take steps to ensure decentralization of decision making and reduction in bureaucracy. I would ensure that lower level managers are also involved in decision making .I would only be responsible for decisions that are of greater impact to the organization. All the barriers to effective communication would also be eliminated.

Dealing with outdated public line

The out dated product line no doubt has a negative effect on the company’s ability to produce high quantity of quality goods at the right time. I would identify what aspects of the product line need a complete overhaul. I would recommend the acquisition of modern machinery so as to improve productivity and efficiency. I would also ensure that the department takes full advantage of automation so as to be at per with other companies in the industry. Experts would also be brought on board in order to redesign the product line.

Dealing with competition for resources internally

The resources could be human resources, financial resources or material resources. However, regardless of what kind of resources they are, I would carry out a survey in order to establish the extent of deficiency. I would then ensure acquisition of the deficient amounts. If need be, I would press for autonomy of my division so that no more internal competition for resources would be experienced. I would also ensure that the various departments in the division are autonomous so that each department has its own resources, it makes tits own decisions and all their machinery is in order.

The organizational structure that best suits this organization is the divisional structure. This is because in a divisional structure, each division is independent of the other. Divisions make their own decisions and hence rigidity in decision making is avoided. Furthermore, each division has its own resources and hence competition for resources is avoided (Burns, 1961).

To manage transition from the previous structure to the fresh structure, I would use the following steps:

• I would assign different project managers who would help me in implementing the new structure.
• roles and responsibilities would be redesigned and everyone would be informed of their new positions in order to avoid confusion.
• resource staffing processes would be revised and a formal requisition process for internal resources implemented.
• a comprehensive communication plan with well established communication lines that detail who reports to who would be established.
• I would seek senior management support so as to be sure that all I am implementing will not meet any form of resistance (Anderson, 2007).

The external environment includes potential financiers, customers and suppliers, the government among others. In implementing organizational structure changes, I would ensure that this is in line with the government policy. Any change should be within the laid down legal procedures. I would also ensure that the transformations do not have an unconstructive impact on the company’s relationship with the customers or the suppliers. The change should be aimed at improving customer confidence and therefore increase sales. Our financiers would also be of great importance. This is because they would offer capital that is required to turn around the division and the company in general. Financiers would include banks, creditors or even the potential investors (Gerstein, 2001).

References

Burns, T. (1961). The Management of Innovation. London: Tavistock.

Anderson, C. (2007). Turning around. London: Random House Business Books.

Garsten, C. (2001), Trust, Control and Post-Bureaucracy. New York: Sage Publishing.