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You are here: Home > Business > Management > Organizational Redesign: Why Today's Businesses Need an Extreme Makeover - Organization Edition |
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Subjects - Organizational Redesign: Why Today's Businesses Need an Extreme Makeover - Organization Edition
Put together one very centralized company, a deserving workforce,
several opinionated executives, a little bit of time and what do you get?
No, it's not Extreme Makeover: Home Edition, but Extreme Makeover:
Organization Edition. Although this sounds like the hit reality TV show on ABC where a family whose home is in ruins has the opportunity to have their entire house redesigned, this article argues that the same idea holds true for organizations today where design, in According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product many ways, is also in ruins and
needs an organizational makeover. In a fast-paced business environment, many organizations recognize the need for a strategy that allows their firms to prosper. However, failure will eventually result when late nineteenth and early twentieth century structures prevail in these organizations. In his book, Organization Theory and Design, Richard Daft says, "This structure was quite effective and became entrenched in the business world for mos ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in t of the
twentieth century. However, this type of vertical structure is not always
effective, particularly in rapidly changing environments, (87). The
solution for an organization stuck in the past, in terms
of strategy, structure, and leadership, which desires to succeed in the
future, is to adopt the approach of the learning organization. What sets learning organizations apart from traditional organizations is that the former's essential value is problem solving, where the lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. latter's is
designed for efficient performance. In his book, The Age of Unreason,
Charles Handy writes, "The learning organization can mean two things,
it can mean an organization which learns and/or an organization which
encourages learning in its people, (225). These firms thrive on asking
questions, testing theories, and changing paradigms. Likewise, Richard
Daft says, "The learning organization promotes communication and
collaboration so that everyone is engaged in ident here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe fying and solving
problems. The learning organization is based on equality, open
information, little hierarchy, and a culture that encourages adaptability
and participation, (28). The environment for companies today is anything but stable. Managers can no longer forecast with certainty the outcome of their organizations. This has drawn attention to chaos theory, which suggests relationships between complex systems, including organizations, are nonlinear and are composed of d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro many choices that create varying effects and render
the environment unpredictable. In the new environment managers are seeking solutions for today and the future of their organizations. The learning organization offers hope for the future as they seek to change key dimensions of their firms in a chaotic environment. A comparison of both approaches followed by an example will further illustrate the purpose of this article. Traditionally, the most common organizational structur ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc e is controlled
through the vertical hierarchy. Decision making comes from top
management and works its way down through the organization.
According to Daft, "This structure can be quite effective. It promotes
efficient production and in-depth skill development, and the hierarchy of
authority provides a sensible mechanism for supervision and control in
large organizations, (29-30). Although this structure may promote
efficiency, in a rapidly changing environment, this type o easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi structure may
become overloaded. Because decisions rest solely with management,
they are not able to respond to changes in the market quickly enough to
succeed. In the learning organization, structure is more horizontal, and tasks are created around processes rather than departmental functions. Furthermore, the hierarchy is considerably flattened, with only a few top managers in finance and HR functions. Daft says, "Self-directed teams are the fundamental work unit in the l nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically earning organization. Boundaries
between functions are practically eliminated because teams include
members from several functional areas, (30). In a rapidly changing
environment, the structure of a learning organization allows firms to
quickly change and adapt to new market demands.
In traditional organizations, strategy is formulated by top managers of
the firm, which every worker is expected to abide by. Executives use
strategy to guide their organizations through efficie and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ ncy and
performance. Workers have little or no say in the direction and strategy
of the firm. In learning organizations, however, both management and informed workers who are in contact with suppliers, customers, and new technology, contribute ideas and help develop the strategy. The strategy of a learning organization is positioned for success because strategies are more informal and allow for quick changes. According to Mintzberg et al, "Their strategies are sufficiently o ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi en-ended to allow for the
unexpected, so that their capabilities of organizational learning can deal
with rapidly changing situations, (215). The leadership in traditional organizations will directly influence the strategy, structure, and environment, or indirectly through the culture of the organization. In his article, The Genesis of Configuration, Danny Miller adds, "The personalities of the very top cadre of managers are expected to have dominated influence on the goals, ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a strategies,
structures…there will be strong associations of …needs for achievement
and power, and neurotic style, with the strategies and structures of the
firm, (694). Conversely, the leadership in learning organizations does not have binding control. Instead, Mintzberg et al, say, "Managers have to learn the art of asking questions, best done at close proximity to operations. In a learning organization, managers become accustomed to walking around and interacting with the dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod ir subordinates in their work settings,
(214-215). Whereas information, knowledge and control of tasks were
directed by top management, with learning organizations, information is
shared and control of tasks is with employees. As an example, we will consider Founders Bookstore Services and then give it an organizational makeover to transform it into a learning organization. Founders Bookstore Services was started in 1991 by Dick Reiter after many years of experience in the c cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin ollege store industry, where he
concentrated on Christian colleges and universities. Due to financial
problems in 1997, the company was sold to College Bookstores of
America and has since operated as a division of CBA. According to Randall Wiersma, senior vice president, the strategy of Founders Bookstores has been to compete successfully in their Christian college store niche and operate in a decentralized manner. Operating in a decentralized approach is sound advice, but the tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen organization's strategy should describe goals and objectives. According
to Jay Gailbraith, "The company's strategy specifies goals and
objectives to be achieved…It sets out the basic direction of the
company, (10). As a learning organization, the strategy for Founders should be approached with the following: Because each retail store operates on a college or university campus, and uses a certain number book wholesalers and suppliers, the strategy should incorporate the ove t? As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel rall goals of CBA, the university, ideas from employees, and input
from suppliers and vendors. Further, the strategy should be to create what I call, "Jack-in-the-box teams, where each team is encouraged to think "outside-the-box. Similar to the toy, turning the handle are the teams thinking creatively for ideas to challenges. The structure for Founders follows the idea of the learning organization. With only a few top executives at corporate, each retail store employee wor ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust ks on the task-at-hand and customer relationships, not department
functions. Further, each store operates as self-directed teams with a
manager to facilitate daily operations. Technology at Founders serves the purpose of supplying information to keep operations running at a high level. Each retail store operates as an entrepreneurial firm, where employees are empowered and have complete information to act quickly to needs. The learning organization thrives on strategy-structure y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products alignment. For
the employees at Founders, there should be a clear understanding of
organizational strategy with a structure that allows the employees to
serve the needs of customers. Alignment also keeps the communication
of the organization simple, clear, and without confusion.
Finally, the leaders at Founders Bookstores need to act as facilitators.
Because the strategy will involve more input from employees and use
jack-in-the-box teams, leadership will involve more walking . As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de around and
interacting with subordinates, and keeping the lines of communication
open. In conclusion, while there are many organizations that use the traditional model approach, the market demands of the present are quickly changing. The future will prove more turbulent for organizations that are not prepared to meet these demands. A makeover to the learning organization offers a solution to organizations that desire to stay competitive as they retain a lean structure, a s elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip trategy that involves
input from key people, and leadership that facilitates involvement and
change. Works Cited 1. Daft, Richard. Organization Theory and Design. Mason: Thompson. 2004. 2. Handy, Charles. The Age of Unreason. Boston: Harvard University Press. 1990. 3. Miller, Danny. "The Genesis of Configuration. Academy of Management. Oct 1987; 12,4. 694. 4. Mintzberg, H., Ahland, B., and Joseph Lampel. Strategy Safari. New York: Free Press. tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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