MRE organisational structure and recommendations for realignment

MRE organisation structure and recommendations for realignment

a.      Current organisational structure

The current organisational structure of MRE is as outlined in the figure below:

Source: http://www.pearsonhighered.com/hypercase/offices/receptio/webpage/o4.htm

From the figure provided, it can easily be determined that MRE follows a tall structure. A tall structure is one that is largely hierarchical with several reporting lines from the CEO to the lower level employees. The company has 5 levels of management with the direct line of reporting for the training and management information systems department being from the Unit managers; director Training & Management Information Systems; to Vice president for engineering and systems; Executive vice president for administration; and to President and CEO. The organisation structure provides insights on the reporting lines in the organisation. It establishes responsibility lines and helps with ensuring that there is order in the organisation (Raduan, et al, 2009). The structures basically help in understanding the functions of each member of the organisation. In many cases, the organisation chart is accompanied by memos outlining the functions of each department and the supervisory roles of the heads of the departments in question (Raduan, et al, 2009).

The structure of the organisation should reflect on its strategic and operational objectives. It should help organisations to deliver on its goals by focussing operational practices on the intended qualities. For instance, an organisation whose survival depends on rapid innovation of products and business processes should have a structure that allows for the swift collection of market intelligence and the conversion of such intelligence into actual benefits for the consumers (Hazman and Ahmad, 2009). Similarly, an organisation dealing with potentially harmful substances should embrace structures that guard against the hazards of independence by lower level of employees (Pleshko, 2007). The need to embrace authoritarianism and other power bases in the organisation may also inform the choice of organisational structure. However, analysts are almost unanimous that the need to exercise adequate controls in the organisation and the need to keep the organisation dynamic in the face of a rapidly changing environment are the two most important determinants of the choice of an organisational structure.

Tall structures can be contrasted with flat structures with the latter comprising of a structure with three or less managerial positions below the CEO. The flat structure requires that a considerably high level of independence be assigned to the lower ranking officials with the managers and CEO only left to deal with issues that have far reaching implications (Pleshko, 2007). This structure is known to be ideal for the facilitation of an innovative and dynamic culture. It also works well where employees are highly independent, self starters and highly motivated. The tall structures (such as the MRE structure) denote stricter supervisory control with managers expected to supervise their subordinates strictly. This diverts their attention from the more strategic functions of the organisation hence the need to introduce more management levels to facilitate higher level management decision making (Pleshko, 2007). The disadvantage of such a structure is that it often leads to idle capacity and under-employment with highly qualified managers often reduced to playing technical management and routine supervisory roles (Hazman and Ahmad, 2009).

An analysis of the organisational structure at MRE reveals certain fundamental weaknesses:

1. Being a tall structure, it makes it difficult for the sharing of information on arising customer needs. This is likely to put the company at a disadvantage should there be a shift in customer preferences that the more agile competitors may capitalise on.
2. Some positions are only necessary due lack of an effective information management system. Such positions could be eliminated with ease hence help in lowering the cost of operations.

b.      Recommendations based on needs identified

An optimum organisation structure should only contain positions that are essential (Hazman and Ahmad, 2009). In other words, instances that may occasion duplication of roles should be eliminated. In the same breath, idle capacity should be eradicated by ensuring that positions that are left are fully functional.

The GEMS being introduced is expected to provide the organisation with the benefit of enhanced accuracy of information. It is also expected to help in outlining the roles of each staff member with a well defined mechanism on tracking down failures and triggering a response process that would culminate in the correction of any anomalies or delays in the system. These functionalities are expected to eliminate the need for strict supervision and this would in turn render some positions within the organisation structure useless. The system is also expected to facilitate accurate recording of information and the generation of management reports with relative ease. This therefore calls for a review of the organisation systems with some of the positions existing in the current structure rendered obsolete. The following recommendations should be considered upon the instalment of the information management system:

The organisation structure can be made flatter by eliminating some positions.

     I.            The first position would be the position of Executive VP for Administration. It is presumed that part of the work of this officer is to ensure that there is enhanced coordination between the various divisions in the company. This coordination function can be done through the creation of an information system that allows the sharing of information for use by other department as need arises. The other function would be the preparation and analysis of reports on the functioning of the divisions under him and submission of reports to the CEO. This function becomes obsolete the moment the CEO is able to generate reports for decision making at the click of the button. It may be unwise to presume that such a high ranking position could be purely technical: it must involve some level of decision making. However, a little empowerment of divisional directors would make it possible to scrap off the position.

  II.            The other position warranting removal is that of the unit managers in the training and MIS division. The unit heads are simply supervisors expected to ensure that their sub-divisions run as expected. Among the functions of these unit managers are the scrutiny of information and the submission of analyses on clients and internal systems. They are also expected to ensure that each employee plays their role as outlined. With an enhanced information system, the director is expected to exercise control of the division with ease. The system can trace sources of weaknesses with ease and can generate reports as appropriate.

III.            Operational positions to be eliminated include the position of writers. Writers are the officers that record the requirements of clients and are useful in the generation of curricula. Their participation increases the risk of distortion of information as they do not interact directly with the clients. With the installation of the new systems, the officers interacting with the clients can record the information gathered during or after the interviews with clients hence guaranteeing accuracy. The system could also be structured in a manner that helps in the collection of comprehensive information on client needs.

IV.            Manager assistant position should also be realigned to the new developments with the officer becoming an assistant to the division director. However, in view of the fact that GEMS may render his work obsolete, his functions should be combined with that of the client analyst.   

The new organisation structure should therefore be as follows:

The new structure is largely dependent on the successful implementation of GEMS and would not be workable in the absence of an effective information management system.

In conclusion, the organisational structure should consider the needs of the organisation. In this case, the organisation sought to realise efficiency in operations through the setting up of an effective information system- GEMS. This system is designed to improve accuracy of information and improve accountability by ensuring that each task is assigned to an individual and that there is a system that allows for the quick detection of delays and identification of the officers at fault. This system is also aimed at solving the reporting problems faced in remote locations. It is expected to enable remote trainers to access the company’s intranet and provide timely updates. This is expected to boost company-client relationships with clients getting the confidence that all updates provided are factual and timely. In terms of decision making, the system allows for the preparation of automatic reports that are tailored to the managers’ needs. In other words, they no longer need analysts to read through physical files and compile reports.

These anticipated developments make it necessary to re-examine the organisation structure with an aim to eliminate positions deemed as unnecessary: positions whose significance is likely to be diminished significantly or eliminated altogether by the entry of GEMS.

References

Hazman, S.A., Ahmad, J., 2009. The fit between organisational structure, management orientation, knowledge orientation and the values of ISO9000 standard: a conceptual analysis. International Journal of Quality & Reliability Managemt, 26(8), pp. 744-760

Hypercase, 2010. Corporate and Organisational Chart. (Online) Available at: http://www.pearsonhighered.com/hypercase/offices/receptio/webpage/o4.htm (Accessed 19 March 2012)

Pleshko, L.P., 2007. Strategic orientation, organisational structure and the associated effects on performance. Journal of Financial Services Marketing. 12, pp. 53-64

Raduan, C.R., et al., 2009. Management, Strategic Management Theories and the linkage with organisational competitive advantage from the resource-based view. European Journal of Social Sciences, 11(3), pp. 402-415