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Organization Design and Development Case Study

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Updated: May 20th, 2021

Available Design Options Regarding Organizational Structures and Relationships

The assessment of the effectiveness of organizational changes within a given team can be performed based on several criteria. As a theoretical basis for a plant assessment scheme, some research items by Kukenberger, Mathieu, and Ruddy (2015) may be useful. In particular, the authors mention such essential points as team orientations and commitments, which emphasize the need for the whole team to participate in the implementation of certain changes (Kukenberger, Mathieu & Ruddy 2015). Thus, the design of the entire change project can include several significant points, each of which can be applied in the context of any other enterprise and be used as a tool for global implementation rather than a separate stage of work.

Empowerment of the Plant’s Units

The entire collection of the plant was divided into nineteen separate structural divisions. At the same time, twelve groups from this number became responsible for production processes, and the remaining seven were called the groups of continuous improvement. Each of the units consisted of six – eleven workers. The key focus of the production line was on five priority areas: design, traffic management, metal production, supply management, and financial and HR support. This division has become fundamental in the process of plant transformation.

Task Management and Decision Making

With the beginning of transformations inside the plant, more freedom was given to structural divisions and their heads. According to Teece, Peteraf, and Leih (2016), it is impossible to achieve success and mutual understanding in the team if there are many leaders in it, and the whole system is too vertical. Nevertheless, the existing level of autonomy was achieved sometime after the team’s adaptation to new working conditions. The manager and the controlling person in each of the units were called the process owner.

Relations of the Process Owner and Subordinates

In order for the team to work as harmoniously and effectively as possible, it is necessary to ensure that all its members strive to systematically achieve their goals. Perhaps, the participation of senior managers in the work of units slowed the whole process a little. If process owners had supported colleagues instead of tightening control, the performance would probably have been even higher. Moreover, as Teece, Peteraf, and Leih (2016) note, a hierarchical structure may have some usefulness; however, when it is about achieving goals, teamwork is one of the most successful models.

Introduction of Accountability

In each of the units, work was carried out to identify the way of responsibility for making certain decisions. All new ideas were taken exclusively at the local level without the participation of senior management (the process owner was the only person responsible for the decision of the team). All tasks in the team were divided according to unique degrees of complexity (simple, difficult, and advanced), which also needed to be taken at the unit level. This gradation of command functions, as Teece, Peteraf, and Leih (2016) remark, contributes to the development of “highly effective entrepreneurial management teams and robust organizational designs” (p. 14).

Support System

As support for specialists, particular teams of experts were organized at the plant. Their task was too timely to help employees to cope with the tasks that are not within their competence, for example, forecasting the demand for goods, pricing, inventory management, etc. Such support certainly provided significant assistance and was no less important mechanism for implementing a new course than the production units themselves.

Balanced Scorecard and HR Role in Implementing the Balanced Scorecard in Health Industry

The evaluation of the success of any organization can be performed through various mechanisms since modern business control systems imply the use of different approaches. One of the ways is to use a balanced scorecard that can improve the process of work and help the management to achieve an increase in their enterprise’s position in the market. The primary essence of such a system lies in a special way of planning and leadership, the essence of which is to calculate the priority directions of development and improve employees’ understanding of the need to achieve specific goals in the context of the existing organizational structure (Kaplan & Norton 1992).

Such prospects provide an opportunity to compete more successfully in the market and to gain success in the process of marketing certain products. According to Gibbons and Kaplan (2015), a balanced scorecard can change the organizational structure to some extent and help the leadership forecast all possible strategies for doing business as accurately as possible. In addition, this mechanism gives managers the possibility to evaluate the performance of their company in terms of four important aspects: how shareholders see their organization, what managers should do, the features of further improvement, and customers’ opinions (Kaplan & Norton 1992). Therefore, the described system significantly contributes to the promotion of any company and helps to ensure more effective control over all its activities.

The use of the balanced scorecard is of fundamental importance for the work of any department as development prospects can be predicted for all the spheres of ​​work. Continuous improvement is achieved through the involvement of all existing resources in activities aimed at strengthening positions (Forte, Hoojaghan & Pool 2016). Those companies where the help of the balanced scorecard is used organize the work of the staff in accordance with modern requirements, namely, the achievement of the set goals in the planned terms, as well as the motivation of the employees. If all workers are aware of the need to promote their organization in the market and earn a positive reputation, the company is likely to be successful.

Training employees in the conditions of the company’s growth is an indispensable attribute of a successful business. As Kaplan and Norton (1992) remark, the evolution of the organization takes place simultaneously with the development of employees’ professional skills. If the management resort to the help of special educational mechanisms, for example, refresher courses, it will help to achieve professionalism in carrying out specific tasks. Consequently, the balanced scorecard provides continuous business development and at the same time contributes to enrichment due to the efficiency and quality of work performed.

Role of HR Specialists

Perhaps, the most significant role in medicine is played by qualified human resources since professional doctors and nurses provide assistance to all who need it and are the main driving force of the healthcare system. Accordingly, a rather big responsibility lies with HR managers who have to select personnel based on the needs of the particular place of work. Medicine is the area where the use of the balanced scorecard is also welcome. Proper planning of results and the use of all resources make it possible to improve the quality of services provided by health organizations (Meena & Thakkar 2014). At the same time, the role of HR specialists is unequivocally important since the success of a particular medical organization directly depends on the choice of employees.

HR managers are consultants on development and support issues and help the heads of medical departments to implement the system of the balanced scorecard for further work improvement. Moreover, the effective work of recruitment specialists in the field of medicine is directly related to the search for talented employees. Despite the fact that healthcare is an area where competition can hardly be traced, the opportunity to achieve high performance is likely to be received with great enthusiasm by the leadership of a certain hospital or another institution. According to Meena and Thakkar (2014), HR managers should ensure that the design of medical centers and the implementation of their internal processes are in line with the organizational goal and contribute to its future success. Therefore, the higher the qualification of such a specialist is, the higher the chance is that a certain healthcare institution will be able to provide medical services at the proper level.

It is possible that the help of external consultants could be useful in case the company does not cope with planning and cannot build a competent recruitment strategy. As Forte, Hoojaghan, and Pool (2016) claim, the appropriate level of organizational culture is a very useful tool for the good management and strategic planning for the development of a particular company’s activities. The task of HR specialists in healthcare is to ensure that medical staff is properly trained, and the balanced scorecard is one of the mechanisms that hiring managers can also actively develop.

Reference List

Forte, P, Hoojaghan, FA & Pool, JK 2016, ‘Investigating the effect of organisational culture on knowledge management and performance: an empirical study in knowledge-based companies using the balanced scorecard’, International Journal of Management and Decision Making, vol. 15, no. 2, pp. 167-183.

Gibbons, R & Kaplan, RS 2015, ‘Formal measures in informal management: can a balanced scorecard change a culture?’, American Economic Review, vol. 105, no. 5, pp. 447-51.

Kaplan, RS & Norton, D 1992, Harvard Business Review, Web.

Kukenberger, MR, Mathieu, JE & Ruddy, T 2015, ‘A cross-level test of empowerment and process influences on members’ informal learning and team commitment’, Journal of Management, vol. 41, no. 3, pp. 987-1016.

Meena, K & Thakkar, J 2014, ‘Development of balanced scorecard for healthcare using interpretive structural modeling and analytic network process’, Journal of Advances in Management Research, vol. 11, no. 3, pp. 232-256.

Teece, D, Peteraf, M & Leih, S 2016, ‘Dynamic capabilities and organizational agility: risk, uncertainty, and strategy in the innovation economy’, California Management Review, vol. 58, no. 4, pp. 13-35.

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