Adopted the Hierarchical Structure, Which Takes Into

¶ … adopted the hierarchical structure, which takes into account the "unity of command principle," which is characterized by the division of labor and hierarchy of authority. In the hierarchy of authority, the organizational structure is illustrated where a member is a subordinate of a higher member, and the higher member a subordinate of the highest member, and so on, as each member becomes the subordinate of the individual with the highest position in the organization.

However, the emergence of the service economy and employee-driven nature of Total Quality Management that emerged in the post-industrial American society gave birth to the development of the concepts of "reengineering" and "flat organizations." Reengineering simply means the re-designing or re-structuring of the distribution of labor and assignment of positions among members of an organization. The ultimate goal of reengineering is to provide efficiency and productivity within the organization's members.

Thus, with the advent of reengineering came the flat organizational structure, where hierarchies are abolished, and an egalitarian division of labor and task assignments are implemented within the organization. This new development in organizational structuring were derived from: (1) the abolishment of bureaucracy within the workplace environment; and (2) newfound autonomy of the workforce from the administration.

Because organizations are structured in a way wherein a member's output is considered as equal as the other member's output, members are given a chance to develop themselves by enhancing their talents and skills as a result of easy social mobility within the organization. Thus, with the flat organization structure, personal development is promoted and group relationships enhanced. One of the essentials in creating or determining organizational designs is to assess the "environment of uncertainty" within the organization.

This degree of uncertainty depends on two dichotomies, which characterizes the nature of organizational structures: dynamic-static and simple-complex. The contingency approach to organization design is a perfect example of this organizational design, which seeks to "create an effective organization-environment fit." The Contingency Approach to organization design is a two-dimensional model that generates a four-way classification system wherein organization-environment fits are determined. The first class, the static-simple fit, has Low Perceived Uncertainty, wherein organizations are stable and environment has a weak influence in the organization's structure and dynamics.

The second class, static-complex, has a relatively weaker immunity from the environment (external factors), as a result of the complex structure of the organization vis-a-vis the environment, leading to saturation within the organization, hence, this fit has moderately low perceived uncertainty (e.g. food product manufacturing companies and organizations). When there is a dynamic environment, there occurs a greater chance for instability or uncertainty within the organization to occur. This is evident in fits 3 and 4, where a higher perceived uncertainties are classified.

Fit 3 is the dynamic-simple fit, which has a relatively high perceived uncertainty rating. The fast food industry is a good example of this kind of organization, where changes in prices and supply of commodities needed for the organization to produce are dynamic (ever-changing) factors that contribute to instability within the organization's structure. Class 4, the dynamic-complex fit, is has the highest perceived uncertainty level, mainly due to the strong influence of the environment within the organization's complex structure (overlapping divisions of labor and task assignments, e.g., telecommunications industry).

The theory of strategic choice conceived and proposed by John Child in 1972 gave birth to the emergence of strategy implementation within organizations. Basically, this theory posits that: (1) environment is just one of the many factors that directly affect organizational structure; and (2) organization design is largely influenced by intra-organizational politics ("power plays"). Strategy implementation within an organization involves taking into account the environmental constraints, organizational objectives, and culture of the decision makers within it.

An organization may choose to focus on either one of the following factors; however, combining two of any of these factors may not become effective and beneficial for the organization, since these factors are, most of the time, conflicting or contradicting each other. Take as an example, organizational objectives vis-a-vis decision makers' culture.

An organization may ideally aim to provide all its members essential roles within it, but due to the decision makers' decision to cut back on costs through retrenchment or cutting back on the number of its workforce, there exists a conflict between the administration and members (employees) of the organization.

Thus, in strategy implementation, an organization chooses one strategy that will best preserve the organization's structure and effectiveness -- that is, adopting a strategy that will provide maximum satisfaction and benefit towards the target market and the organization's capital and human resources, technology, and total quality management. Creating a quality workforce within an organization entails.