Emerging Concepts in Organizing
The rapid change in technology, knowledge, and globalization brings new concepts in organizing. The managers have to consider these emerging concepts of organizing in organizational structure and design.
Let’s take a look into new organizational structures and designs that today’s managers have to consider once.
#1 Work Team Concept
A team can be defined as a group whose members have complementary skills and are committed to a common purpose for which they themselves are mutually accountable.
Today team spirit is considered an important element for organizational effectiveness. Teams are formed to perform a variety of jobs on the basis of requirements. Teams are empowered and independent in performing jobs. They authority plan, allocate resources, coordinate and control activities.
The team members are the in-charge of their work and can perform their work themselves according to their own logic and knowledge. Managers only communicate information and play the role of coordinator.
#2 Boundary Less Organization
The boundary-less concept is also one of the emerging concepts in organizing. Boundaryless organization is an organizational structure in which a chain of command is eliminated, the span of control is unlimited, and rigid departments give way to empowered teams. It is also known as barriers free organization.
In other words, an organization that is not bound by predetermined vertical, horizontal, and external boundaries. Vertical boundaries can be removed by reducing hierarchy levels, horizontal boundaries can be removed by combining interrelated functions, and external by the development of technology, competition, globalization.
It emphasizes flexibility in a structure that can be modified on the basis of time and requirements. For a boundary-less organization to function effectively, everyone involved must have a high level of skill so that they can operate without much managerial guidance.
#3 Virtual or Network Organizational Structure
At present, world-leading business organizations perform business through computer networks. This emerging concept of organizing is based on telecommunications without physical appearance. It is also called a modular organization structure.
The main objective of the network organizational structure is to eliminate unnecessary departments and to perform specialized work through outsource experts. These works consist of marketing, logistics, human resource management, technical support, accounting, etc.
#4 Learning Organization
Organizing is a continuous process. Learning organization emphasizes continuous learning to adjust the new business challenges. It is a process to acquire bits of knowledge up to the life of the organization because the environment is unpredictable.
#5 Organization Downsizing
Downsizing is the process of restructuring the organizational design by removing unnecessary levels, jobs, units, employees, etc. In short, it is a process of bringing an organizational structure to an appropriate size.
Downsizing concentrates on minimizing the vertical size and maximizing the horizontal size of the organization on the basis of requirements. The main purpose of organizational downsizing is to minimize the cost of operation by developing organizational efficiency.
It can be introduced in the organization by developing automation, computerization, and other technological developments.
#6 Process Re-engineering Concept
Re-engineering is a radical design of all aspects of an organization to achieve major benefits in cost, service, or time. At present, many organizations are going through comprehensive change programs involving all aspects of an organization’s design, technology, and people.
Reengineering an existing organizational design, process, or stricture is essential when it fails to work in a competitive environment. It is designed to bring organizational effectiveness and to gain cost benefits.
For successful reengineering, it requires a systematic and comprehensive assessment of the entire organization. For this, the top-level management needs to clear the reasons and goals of reengineering and it is necessary to take support from subordinates.