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Xerox
Bureaucratic structures exist in organizations in order to provide a means by which to exercise control over the organization. This type of structure focuses on chain of command and reporting. This structure usually sees strategy formulated at the top of the organization, then disseminated downwards. The managers play the role of assigning tasks and control over their employees. Multiple layers of management are typically used in order to ensure full and effective control over the company (Ingram, 2015).
There are several benefits to flatter organizational hierarchies, and the Xerox case exhibits several of these. One of the most important is better communication. Management at Xerox needed to encourage greater creativity, in particular getting feedback from all levels of the organization in order to innovate. The flatter hierarchy lowers barriers between workers and key decision-makers, enabling communications to flow better throughout the organization (Griffin, 2015). This is what occurred at Xerox, where the company became leaner and decisions were made more quickly. This allowed Xerox to become more responsive to the needs of its customers. Teams were empowered, which also improved the ability of Xerox to respond to the market, and to move without needing successive layers of approval...
The product model of organizational structure is common because companies had a split where engineers would make products, then require a sales division to sell them. However, it makes more sense for Xerox to work with a customer-based organizational structure. There are similarities in the different types of firms that Xerox serves, and their needs are in particular quite similar by customer type. As such, the firm started to shift towards a customer-based organization structure as part of its changes.
Organizational design affects how an organization controls its activities, and how fast it can respond to changes in its external environment. The bureaucratic structure at Xerox was successful when the company had a near-monopoly and could focus on producing high numbers of goods, but there was a change in the environment with foreign competition. The company was far too slow to respond to this shift. The change in the external environment was met with a change in organization structure under the two CEOs in this case.
The new structure was more responsive, something that was required. In addition to moving more towards a structure…
References
Ingram, D. (2015). What are the advantages and disadvantages of a bureaucratic organizational structure. Houston Chronicle. Retrieved November 21, 2015 from http://smallbusiness.chron.com/advantages-disadvantages-bureaucratic-organization-structure-2761.html
Griffin, D. (2015). Benefits of a flat organization structure. Houston Chronicle Retrieved November 21, 2015 from http://smallbusiness.chron.com/benefits-flat-organizational-structure-281.html
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