Answer to Question #316088 in Management for frgfdfr

Question

‘Flora Medicals’ is a pharmaceutical company which had a line organisational structure. Now it wants to change its structure to a matrix organisation. As their, HR head, which important principles of organisational structure will you keep in mind while making this change. Explain these principles, in the context of a pharmaceutical company. Justify whether it is the right decision or not.

Answer 1

The organizational structure of a business affects critical elements such as decision making, employee behavior, performance and rewards, individual accountability and managed information. It’s important for businesses to understand the principles of organizational structure in order to implement, change and use them effectively. The basic principles of organizational structures can be applied to any size business, from small start-ups to large corporations. When changing to a matrix organisation there some important principles of organisational structure that need to be kept in mind;

• Job Descriptions and Optimizing Employees

Despite what kind of structure an organization uses, it’s critical to clearly identify job descriptions so that employees are aware of what is expected of them. Additionally, businesses should ensure they are optimizing their top talent well.

• Establishing and Attaining Objectives

The design of an organization should be in line with achieving company goals. The business should be structured to enable the employees to most effectively help the company reach its targets. Meaning companies should not strictly adhere to a specific organizational structure if it limits their potential. It’s important for businesses to track and analyze the performance of their organizational structure and see how well it enables the business to reach its goals. This way, businesses can see if something is hindering their progress and work to correct it.

• Remaining Stable Yet Flexible to Promote Growth

An organization’s structure needs to be stable to provide a steady work environment for employees. If a company institutes several organizational changes in a short period of time, employees may feel nervous about their position in the company and may be distracted from their day-to-day tasks, leading to a loss of productivity. At the same time, it’s essential that an organization be flexible to adapt to changes that are not under its control. For example, economic factors can affect the profitability of the business or environmental changes can affect production and manufacturing supplies. The business needs to be nimble enough to shift organizationally to accommodate these kinds of external challenges. By changing the structure on a grand level or shifting around key personnel to better solve certain issues, the business has a better chance of meeting its objectives in the face of adversity.

It is a right decision to change to a matrix organisation because it breaks the monotony and gives more flexibility to the organisation. Employees work with colleagues of different departments who have their expertise in different functions. When different people from diverse departments work together, it helps solve problems in a more efficient way. It does lead to overall development of employees as each one is exposed to different functions apart from their core job.