Introduction to Organisations and Management Essay - 8

Introduction to Organisations and Management - Essay Example Organizations thus needed to change the way they are operated so as to keep pace with the changing trends. As a result, organizations do not follow strict procedures and bureaucratic structures which cannot respond quickly to the environmental changes. Watson engine components and H & M consulting are two organizations with different modes of operation and management. Watson is a family owned organization dealing with one line of business of producing and selling car engine components whereas H & M is a multinational organization formed through mergers and acquisitions dealing with various lines of business such as; consultancy, providing services to public and private sector in issues dealing with environment, education, water, energy among others. Watson is a traditional organization which has not yet embraced the changes brought about by globalization hence is finding it difficult to attract and retain employees as well as customers and it is at the verge of collapse unless drasti c measures are taken. H & M on the other hand, is a global organization which is experiencing a lot of success due to its mode of operation and management. Its customer oriented and values its employees making it a leader in the market. This paper will analyse the differences between the two organizations in terms of how they are operated and managed. Organization Structure and Design The organization structure refers to the framework of the organization and design refers to changes made to the organization structure (Gitman & McDaniel, 2008). The structure determines how authority and responsibility are shared, the channels of communication, the span of control and how the activities are assigned within the organization. The structure is determined by various factors such as; size, leadership, type of activities, technology and the environment. The size of the organization matters when designing organization structure. Small organizations have an organic design. There are no comple x rules and procedures to be followed and hierarchical structures as there are few employees. Large organizations are more bureaucratic and follow complex procedures (Hill & Jones, 2008). However, due to advancement in technology and emergence of team work, large organizations like H & M no longer need to be bureaucratic. Such organizations maintain strong employee involvement and use information technology to control the project teams. Watson though medium sized is highly bureaucratic with no staff involvement. According to Gold et al (2010), the leadership style determines the type of structure. Autocratic leaders are associated with bureaucratic organizations. They do not communicate directly with staff and workers have to follow strict procedures. Gordon Watson, the director of Watson engine components makes all the decisions which are put into action by the operations director. He does not embrace changes hence the organization structure remains bureaucratic and unable to deal with changes. Theo Wolf of H & M is democratic and has empowered the employees to conduct their project teams without interference. The structure of the organization is organic and flexible enough to deal with any changes. CliffsNotes (2011) argues that the level of technology and environment determine the organization