Organizational Theory and Design Essay Example

than twenty five employees and is deficient in formalization and centralization structures.

Ternary’s formalization needs strengthening by identifying the roles of individuals, job escriptions, policies, and regulations, and centralization needs to define the hierarchy or chains authority, who is in control, and who has the final say in the decision making process. Although what seemingly is a good idea to have a contingency of employee represented to share concerns, ideas, designs, and opinions involving the organization, Ternary needs a more defined structure when dealing with this vital stakeholder group.

Because of the lack of structure and authority, Ternary falls short in terms of effectiveness and efficiency. Allowing employees to overpower or even filibuster a meeting is time consuming and financially burdensome. A basic framework of the organization, including policies and procedure, the chain, lines, and command of authority needs to be established. Ideas, concerns, designs, plans etc. should be welcomed within an established forum, and decisions should be made by designated management individuals.

This particular horizontal structure may work well in a rapidly changing environment as it increases communication between different levels of management, but it may also hinder growth of the organization with proposal, designs, and plans not being agreed upon and employees heading back the drawing board (Daft, 2010). In terms of specialization and professionalism, the company seems to have a grasp on the what qualifications and job training is necessary in the software industry, as well as assigning the right job to the right individual, however ranking close to the 50% mark suggests much room for improvement.

Porter’s Competitive Strategies

The three strategies that Porter developed are

Ternary Software Company, being a relatively small organization, needs to distinguish themselves in such a way that customers not only rely upon them for their technological needs, but are inclined to recommend them to others. The size of their company can be used to their advantage. A small, close knit company which has the ability of make customers feel they are part of a family can play to their strength.

Communicating often with customers, vendors, and the community at large will enhance their reputation and potentially grow the company. The best course of action leadership should take is to first identify key stakeholders (Lawrence & Weber, 2011), assess their interests, opinions, expectations, and prioritize accordingly. This unique approach will only add value, and continuous communication between stakeholders and the leadership of Ternary will help promote the health, well-being, and growth of the organization.

This will also lead to developing positive and ethical relationships which insure stakeholders’ values and intentions are congruent and compatible with the vision and mission of the organization (Casey, 2004). While many organizations are concerned with just making money at any cost, Ternary has the ability to grow the organization by first developing internal and external stakeholders’ relationships which can potentially lead to building a strong organization with a strong competitive edge.

Management faces an uphill battle of building congruent relationships with internal stakeholders, holding true to the mission and vision of the organization while remaining viable (Casey, 2004). In order for Ternary to build this type of capacity and hold a competitive edge, they

must first create a more intense formalized and centralized structure in the organization, with leadership driving and transforming the organization while incorporating unique ideas and approaches from all levels.

Low Cost-Leadership

The evidence in the text revealed that Ternary ranked just below mid-range on specialization and mid-range on professionalism. When comparing these structures, Ternary needs to be competitive yet stable since it is not a large enough company to withstand turbulence in the market. Ternary seemingly has the ability to produce and deliver unique services at a lower cost than other competitors because of their unique makeup. Overhead is small, employing only 25 employees.

If management keeps salaries and rent low, and more structures and systems are incorporated into the organization, they have a fighting chance of staying viable.

Ternary ranked the highest in specialization and professionalism, equating to dividing the work appropriately with qualified individuals. According to Fayol (1949), the division of work is the most efficient way of accomplishing tasks. In order for Ternary to be successful, they must have a managerial plan in place to divide the work, and operate on an efficient scale, meaning the work must be dividing, authority and responsibility must be recognized and adhered to, and managers must have direction and command of employees while supervising he work being accomplished (Porter, 1980).

Focus Strategy

Porter (1980) found that organizations should target or concentrate on distinct areas of the market. Ternary’s specialty is in the field of technology, a growing and competitive industry. Finding a particular niche or concentrated on one area within the industry may enable them to fill needs and stay

competitive. If they implement the Porter strategy, finding a particular niche in this varied field, it could lend itself to more recognition as well as grow their competitive edge.

Miles and Snow Typology Out of the four typologies that Miles and Snow described, Ternary seems more in-line with the reactor strategy. The text suggests that Ternary lacks any consistent strategic structure and relies upon and responds to environmental changes and other opportunities in an ad hoc manner, referring to the seven member committee Ternary incorporates for decision making purposes (Daft, 2010). Formalization and centralization are weak, and specialization and professionalism, although higher, need much work.

According to Daft (2010), leadership has offered a unique way of listening to employee’s ideas and concerns, but the negative slant on leadership, postulated by CEO cowering to employee demands, leads one to believe that the vertical communication is weak, and horizontal communication is gaining strength. Although a small organization with only a few layers of management, Ternary leans toward the horizontal structure for communication.

This has the potential for making faster decisions and building a team spirit, allowing for faster output and growth. However, As Daft (2010) noted, reworks, plans thrown out, managerial decision being discounted can impede the work, causing dissension among the employees, loss of time and revenue, and breakdown in communication. Strategic management planning will allow for better efficiency. Organizations are made up of people and their interactions with one another, each performing essential tasks to accomplish organizational goals.

The quality and efficiency of an organization are in the details, creating value for all stakeholders (Daft, 2010). Simons (1994) stated, “Control systems

are used by top managers to formalize beliefs, set boundaries on acceptable strategic behavior, define and measure critical performance, and motivate, debate, and discus strategic uncertainties. ” Managers therefore need to equip and empower employees by making strategic decisions that will increase efficiency to meet organizational goals. ”