Daft, (1992:253) identified that the Organisation runs fast to keep with changes taking place all around them. Organiation must modify themselves not just from time to time, but all the time International competition create the need to structural innovations such as self managed teams, network structure, and ways to extend markets into other countries. With the time to time there were different types of changing take place, like product improvement, new product create new market, Breakthrough technology create new structure.
There are four type of changes serve as competitive to achieve an advantage in the international environment. Technology changes. These changes designed to make production more efficient or to produce greater volume. Changes in technology involve the techniques for making products or services. Product and services changes. These changes affect the organization out put. New products are normally designed to increase the market share or to develop new markets, customers, or clients. People changes. These changes refer to the people attitudes, skills, expectations, beliefs, abilities, style, and behavior of employees.
An organization hires only the best people or to upgrade the leadership ability of key managers these would be people changes. These changes include improvements in the communication, problem solving, and planning skills of employees. Structure and system changes. These changes refer to the administrative people within the organisation. The administrative domain involves the supervision and management of the organisation. These changes include changes in organisation structure, strategy, policies, reward systems, labour relations, coordination, management information and control systems, and accounting and budgeting systems.
The four types of change provide a strategic competitive wedge. Vision Daft, (1992:253) The four types of changes are interdependent because change in one often means changes in another. A new product may require changes in the production technology, or a change in structure may require new employee skills. Organisational change is consider the adoption of a new idea or behavior that is new to the organization’s industry, market, or general environment Innovation typically are assimilated into an organisation through a series of steps or elements.
For a change to be successfully implemented, managers must make sure each element occurs in the organisation. If one of the elements is missing, the change process will fail. Environment Sequence of elements of successful change. Daft,(1992:253) Structure and system change. These changes are the responsibility of upper managers in organizations. Administrative changes refer to the design and structure of the organisation itself including restructuring, downsizing, teams, control systems, information systems, and departmental grouping. Administrative changes occur less frequently than do technical
Changes and secondly administrative changes occur in response to different environmental sectors and follow a different process than technology-based changes. The administrative core responsibility includes the structure, control, and coordination of the organisation itself, and concerns the environmental sectors of government, financial resources, economic conditions, and human resources. The technical core is concerned with transformation of raw materials into organisation product and services, and involves the environmental sector of customers and competitors. Daft, (1992:264).
Structure is very important part of any organisation because structure provides the pattern of relationship between the numbers of people working within the organisation. Structure creates a framework of order and command of organizational activities like, planning, organizing, directing, and controlling. The main objective of structuring is to increase its productivity, monitor the performance of workers and, coordination of tasks, flexible in order to respond the future demands and developments. A clear structure makes it easier to see which part of the business does what.
(Carden, 2005,lecture notes) Centralized structure helps the organisation to easy implementation of common policy. There is one-man control culture within the organisation and top management can do any decision. But centralized structure is very hard because it is difficult to one man to control the whole organisation. (Carden, 2005, lecture notes) Decentralized structure enables to decisions to be made closer to the operational level of work, and administration is closer to the activities. It provides the opportunity for training managers. It affects on staff motivation and moral.
(Carden, 2005, lecture notes) Functional structure. In this type of organizational structure the division of work is the most important part. Jobs and activities are group together and short-term decision-making power and responsibility assign to the head of the department. Each department focuses on its own work. Every body knows his role and there is tight control from top management. But functional structure affects the coordination, which may take too long and there is communication gap among the departments. (Carden, 2005, lecture notes) Divisional structure.
Divisional structure helps to focus on market segment and meet the customer needs. There is positive competition among the departments. Different division can better control and show the separate profit. But there is lack of control over each separate division. There are fewer chances of people to learn more because there is no coordination among the other divisions. (Carden, 2005, lecture notes) Matrix structure. This structure facilitates the organizational flexibility to make it easier to respond quicker to changing products and customer needs.
Different departments work together and give the suggestions to solve the problem. The structure enables the organisation to maximize its use of employee’s skills, but there is ambiguity and role conflict because there is question that who lead to others because all others are the boss of others department. (Carden, 2005, lecture notes) The structure of an organization is very important of every organisation and it affects not only the productivity and economic efficiency but also the moral and job satisfaction of the workforce.
If the structure is well define and clear and supported to the employees, there is positive impact on productivity and economic efficiency. Organisation earn maximum profit which lead to the better production, when there is better production the economic efficiency of the organisation will increase and organisation earn more profit, when there is more profit the salaries of the workforce will increase. Top management will be happy of their workforce and they motivate employees in the shape of bonuses, prizes, and promotion. Managemnt provide the better work environment and other facilities to their workforce.
The moral of the employees will be high and they feel security and they will work with effective and efficient way. On the other hand, when there is no well design structure, this will not only affects the organisation productivity and economic efficiency but also the workforce. When there is low economic activities, employees will threat of job security. There is no motivation level within the organisation, when there is no incentive or any encouragement of employees, the employees will be demoralised, which affects the efficiency of the workforce.