The Organization Structure

Koorsen is one of the main competitors for Nelbud – the organization I am currently employed. Koorsen has adopted a functional organization structure, which is informal compared to my current organization. Functional organization structure has more communication channels, especially between directors and managers (Freedman, 2020). As such, departments can work together without necessarily involving the immediate upper rank or the CEO. However, the CEO is at the top of the hierarchy. The interdepartmental collaboration enables directors or managers to design their leadership models without formal or written book rules.

Figure 1 Functional Organization Structure of Quaro Ltd

Both Koorsen and Nelbud organization structures have similarities. First, power increases up through the leadership hierarchy. That is, CEOs in both organizations are the most powerful. Secondly, both structures have a persistent vertical communication model. For instance, in my organization, the CEO has to be informed of all the departments’ critical decisions through the managers and directors. At Koorsen, the CEO may retrieve any department information either through the managers and directors or directly from employees. Thus, both Koorsen and Nelbud organization structures maintain information to flows vertically.

However, both organizational structures are inherently different. For instance, Neldub’s organization structure is indefinitely formal. Formalization structure honor protocols when making decisions and conducting organizational communication (Gibson et al., 2019). For instance, our CEO would seldom ask an employee about their performance; instead, she asks the director, who informs the department manager about the employee. The model is different at Koorsen in that its functional organization structure allows many open communication channels. As such, the hierarchy of the organization is overlapped by necessitating situations.

Figure 2 Formalization Structure at my current organization

Nelbud’s mission is to “strive to be a safe and progressive service company by embracing change, being honest, proud, and accountable to ourselves and core values while keeping our employees first and customers second” (“About Us”, 2021). As for Koorsen, the mission is “We keep lives and properties safe” (Koorsen Fire & Security, 2021). Both the mission and vision statements link to the organizations’ structures. For instance, Nelbud mission statement indicates a focus on employee accountability as a priority. For that reason, the organization has insisted on using a rules book to ensure that employees are executing all functions as required. As for Koorsen, the mission statements indicate an openness to innovation through organization functions, aiming at the company goals. As such, all departments can work together, and employees can innovate to ensure the company keeps its clients’ lives and properties safe.

The formalization structure at Nelbud works but has many weaknesses. For instance, it limits an employee’s autonomy to make decisions. We use the rule book to make decisions, which often become challenging in unique situations (not covered in the rules book). Also, the structure reduced employee innovativeness, as they have to follow the traditional decision-making approaches (María Martínez‐León & Martínez‐García, 2011). For instance, I do feel demotivated and not maximizing my potential in making better decisions.

I would recommend my organization break the organization hierarchy’s rigidity such that employees have a degree of freedom for innovation. While the rule book is critical, the current one should be revised to allow more freedom in communication and interdepartmental collaboration. Lastly, I would recommend Nelbud to allow employee innovation in unique situations not covered in the rules book. That way, employees will also be commended and recognized to increase employee motivation.

References

About Us. Nelbud.com. (2021). Retrieved 3 March 2021, from https://www.nelbud.com/about

Freedman, M. (2020). Types of Organizational Structures to Consider for Your Business. Businessnewsdaily.com. Retrieved 3 March 2021, from https://www.businessnewsdaily.com/15798-types-of-organizational-structures.html.

Gibson, C., Dunlop, P., & Cordery, J. (2019). Managing formalization to increase global team effectiveness and meaningfulness of work in multinational organizations. Journal Of International Business Studies, 50(6), 1021-1052. https://doi.org/10.1057/s41267-019-00226-8

Koorsen Fire & Security. (2021). About Us – Koorsen Fire & Security. Koorsen Fire & Security. Retrieved 3 March 2021, from https://www.koorsen.com/about-us/.

María Martínez‐León, I., & Martínez‐García, J. (2011). The influence of organizational structure on organizational learning. International Journal Of Manpower, 32(5/6), 537-566. https://doi.org/10.1108/01437721111158198