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Instructions

Supporting Lectures:

Review the following lectures:

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Introduction

For this assignment, consider that organizations must create a structure that is best adapted to its industry, goals, and resources. Managers rely on the structure to control outcomes, which involves monitoring and influencing employees to gain the highest productivity possible.

Tasks

Respond to the following:

  • Analyze the pros and cons of both centralized and decentralized structures.
  • Explain whether a decentralized structure would work for any organization. Why or why not?
  • Evaluate how an organization can be effective when decisions in a decentralized structure are made by employees and not managers.
  • Analyze how both centralized and decentralized structures influence innovation.
  • Explain how both centralized and decentralized structures impact employee motivation.

To support your work, use your course and textbook readings and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Submission Details

  • Create a 4–5-page Word document.
  • Name your file as SU_HRM5090_W3_Project_LastName_FirstName.

Strategic Decisions in Organizational Design

Global organizations are repatriating manufacturing back to the United States. In prior decades, manufacturing work was transferred from the United States to overseas competition where labor was, by comparison, much cheaper. Today, the United States is experiencing a renaissance in manufacturing due to improvements in technologies. Work that used to require hundreds of laborers in manufacturing now requires a fraction of people. In addition (and as important) to needing fewer laborers, improvements in technology allow substantial improvements in productivity. Interestingly enough, because of advances in manufacturing technologies, global �rms are looking to the United States for their manufacturing needs. This is true even though the labor costs in the United States are among the highest in the world. The advantage the United States is now offering is not with cheaper labor but its application of technological know-how.

In order to compete and survive, organizations today, now more than ever, need to keep current with the changes in technology. Technology being referred to includes much more than just equipment. It includes how work is arranged and processed; the equipment, machines, and techniques used; and innovative methods for selecting and transforming inputs (raw materials such as cotton, wood, steel, and glass) into outputs (clothes, cars, etc.).

Organizational Design

The link here is how organizations make strategic decisions in organizational design based upon its use of technology. How can an organization be designed to provide the maximum productivity and ef�ciency from its use of technology? Organizations have both core and noncore work processes that are used together to achieve ef�ciency and effectiveness. Decisions to optimize the core processes include how technologies are acquired and used and traditional and contemporary

applications of those technologies through lean manufacturing and smart factories. Decisions to optimize the noncore processes include functions of human resources, marketing, accounting, �nance, etc.

Additional Materials

From your course textbook Organization Theory and Design, read the following chapter:

Manufacturing and Service Technologies

Organizational Structure

Organizations work hard to create the best internal structure to help them meet or exceed their goals. No organization can exist without people. Executives focus on results and generally should not be concerned with how the work is done, which leads to higher productivity as employees are free to make decisions at a local level. At the same time, managers generally want to implement some type of control system to measure and monitor employee behavior and performance. So, what are the options for arranging the control structure to provide control over employees and teams to achieve maximum results?

Centralized vs. Decentralized Structure There are two forms of structure: centralized (or hierarchical) and decentralized. There is no right or wrong approach to which structure an organization chooses.

Review each image to learn more.

Centralized Structure

Decentralized Structure

Today, we see a shift in structure as organizations are moving toward a decentralized structure in which employee empowerment is critical. An example of an organization that is decentralized is Valve Software. Valve is a highly successful computer gaming company that has no managers. In the employee handbook, even the CEO says he is not the boss. The employees are in charge of what is made, who is hired, and how things are done. Employees make all of the decisions and, in fact, are expected to participate in and contribute to the decision making. Decisions are made by employees because managers do not exist at Valve.

Additional Materials

From your course textbook Organization Theory and Design, read the following chapter:

Technology for Control, Social Business, and Big Data

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