Discuss the new forms of organizational structures

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Q1 Discuss the new forms of organizational structures, giving some clarifying examples??

1-Indicative Answer(1)
• Always beautiful ( downsizing , delayering , outsourcing )
• Focus on external relations (customers , suppliers )
• Performance - based not task -based control
Smaller Size :
• Downsizing is random ; delayering is more systematic removal of whole tiers of management in the hierarchy
• Both; speed response time ,more cost efficiency & competitiveness
Problems : downsizing- increased workload, stress levels ;delayering - empowering staff lower down the hierarchy
2- outsourcing : is the hiring another company to provide the outside support (catering training , security , legal services , etc )
• Reducing employees number & increasing flexibility, variety of skill& expertise

3-Growth :
• Diversification (Sainsbury) , acquisition (Cheltenham & Gloucester BS),mergers (Lloyds TSB) , alliances, &joint ventures.
• Thus , buying in the expertise , infrastructure ,& customer base , instead of developing this internally .
• Permanency & semi- dynastic 'All this will be yours one day , my lad ' are not an entrepreneurial objective any more .

4-Decentralisation & Empowerment :
• Decentralizing decision making to business units (some problematic)
• Pushing down authority to employees lower down in the hierarchy (coaching VS controlling; retailing &hotels)
• Empowerment save management time , motivates employees& increase their commitment


• Current structure , culture & HR systems may conflict with the empowerment message
• Its boundaries are not clear , leading to confusion .
• Managers are not willing to give up power / decide to take it back .
• Employees may not want to be empowered
• Business Process Re-engineering
• Focuse on how the work is done not on what is being produced
• Radical redesign of the organization
• Concentration on the customer & the outputs
• The purpose of the organization is more visible

5- Redefining the boundaries:

Minimizing external & internal organizational boundaries could result in to :
• Virtual , Networked ,& Boundary less organizations
• External: supply -chain development - some activities are moved to the supplier and others to the customers (M&S: underwear; self-servicing ;IKEA: assembling furniture by customers)
• Manufacturers' controls over the agents & retailer(Motor servicing )
• Virtual; new corporate model ,similar to and an expansion of joint ventures and strategic alliances
• Virtual could be temporary networks of organizations , exploiting an opportunity. They share skills, costs , access; demonstrating excellence ,technology , opportunism, trust ,& lack of borders
• Internal :no boundaries between jobs& departments (concepts overlap)

Q2. Describe the evolution stages that HRM. Use examples to support your argument?

Stage1: the social reformer:
Lord Shaftesbury & Robert Owen's work in the 19th century, criticising the free enterprise system & exploitation of workers. This led for the appointment of first personnel managers.
Stage2: the acolyte of benevolence:
• Early 20th century, the appointment of welfare officers
• Unemployment benefit, sick pay & subsidised housing (Cadbury & Lever Brothers' soap business)
• Higher productivity, a longer-serving workforce & more applicants.
• Less adversarial industrial relations.
• Nowadays: Pension schemes, childcare facilities & health screening.

Stage 3: the humane bureaucrat:

• Social scientists F.W.Taylor (1856-1915) and Henri Fayol (1814-1925).
• Designing organisational structures & deploying labour to maximise efficiency.
• Influence of Human Relations School (Elton Mayo 1880-1949).
• Social relationships in the work place and employee morale became important.
Stage 4: the consensus negotiator:
• Trade Unions and the challenge from below
• Joint consultation committees & Joint production committees
• 1940s nationalisation of some industries & appointing personnel officers.
Stage 5: organisation man:

• Integration of managerial activity rather than dealing with the employee on behalf of management.
• Late 1960s personnel specialists are more concerned with recruitment, development and retention of elite core with specialist expertise.
Stage 6: the manpower analyst:
• Prior to HRM in 1980s, the technique of workforce planning.
• Quantitative activity boosted by the advent of IT (forecasting the need for employees).
• Manpower planning is now HRP, accurate forecasting is getting difficult. 

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Reference no: EM13646127

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