Organization Theory and Design Essay Example | Topics and Well Written Essays - 1750 words

Organization Theory and Design - Essay ExampleAdditionally, in the functional model, decision-making is usually make at the top and this makes it difficult to move to the altering competition (McKinsey, 2006). In the hybrid structure, decision-making it not difficult since the manager in each unit is able to make decisions autonomously. The unit leaders are accountable for the outcome of their decisions and this motivates them to have more entrepreneurial strength. The separate unit management enables the leaders to react to alteration in the market faster than in the functional model. Splitting of channel into units enhances proper communication, which is difficult in the functional model. Lack of proper communication can lead to the difficulties in cooperation and supervision in a corporate. Furthermore, the splitting enables the CEO to concentrates on the business strategies instead of the daily business operations. Hybrid business structure promotes the development of the youn g leaders in the organization. The functional model can work best in the aviation groups that contract out many support functions, those that do not have the innovative communication system that are required to manage complex structures, or the ones that serve few uniform customers sections. To avoid the problems associated with the functional model, especially since the airline business is very complex the business should shift to Hybrid model (McKinsey, 2006). In businesses, there are many tasks, which should be completed in time in order to realize the organizational goals. The can be made easier through differentiation. Differentiation is a process, which a corporate assigns people to different tasks. The process also involves the allocation of resources to the businesses tasks. Differentiation in corporate ensures that the workers are given tasks according to their areas of interest. From my observation, Hybrid structure gives more differentiation compared to the functional m odel. This is because in the hybrid, the managers are assign to each unit according to their areas of specialization. Additionally, the managers in each unit are responsible for decision-making and the model is mostly used in customer segments that are not homogenous. Differentiation promotes the businesss transparency. Since the hybrid structure provides more differentiation, it makes the firm to be more transparent unlike the functional model. The transparency ensures there is golden accountability for the corporate outputs and the appropriate distribution of resources and proficient leaders in each unit. Differentiation enables the firm to lower expenses too. Since the hybrid structure is more differentiated, it enables the managers in each unit to negotiate labor contract. This ensures that the work conditions and wages of the workforce correspond to the ones for the direct rivals (McKinsey, 2006). Support structure needs to be the same if the changes made can result to the pr oblems associated with duplication of efforts. Example of a support structure that should not change is the airline branding. All the units should use the parent name of the political party to attract the consumers. Minor support functioning like the services offered to consumers and delivery can change depending on the unit level. Some support functions can be bought with other corporate units while others can