Doughnut Structure


Although most organization charts are constructed in the shape of a pyramid, extending downward from the board of directors or president, some firms have doughnut structure—an organization chart made up of concentric circles that represent top management, staff personnel, and functional areas and that reflect a more flexible structure—people see themselves working in a circle as if around one table. One of the positions is designated chief executive officer, because somebody has to make all those tactical decisions that enable an organization to keep working. The doughnut design is made up of concentric circles, in which the center ring consists of top management. The second ring is composed of important staff personnel, such as legal, personnel, research and development, and electronic data processing, whose services are used by all departments. The third ring consists of managers of functional areas, while remaining rings comprise department and other supervisory managers

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Avoiding Uncertainty


How do people deal with conflict, particularly aggression and the expression of feelings? High uncertainty avoidance favors precise rules, teachers who are always right and superiors who should be obeyed without question. Low uncertainty avoidance leads to flexibility, and a situation in which arguing with superiors is acceptable and students are happy with teachers who do not claim to know everything.

In weak uncertainty avoidance cultures, managers and non-managers alike feel definitely uncomfortable with systems of rigid rules, especially if it is evident that many of these were never followed. In strong uncertainty avoidance cultures people feel equally uncomfortable without the structure of a system of rules, even if many of these are impractical and impracticable.

The choice of structure is strongly influenced by the prevalent culture. A culture with high power distance and strong uncertainty avoidance prefers a functional ‘pyramid of people’ hierarchy. Lower power distance but high uncertainty avoidance encourages a ‘well-oiled machine’: an organization with a clear structure, rules and procedures.

The control process also helps managers deal with problems arising outside the firm. If the firm is the subject of negative publicity, for example, management should use the control process to determine why and to guide the firm’s response.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Levels of Management


Many organizations have multiple levels of management—top management, middle management, and first-line, or supervisory management. These levels form a pyramid. There are generally more middle managers than top managers, and still more first-line managers. Very small organizations may have only one manager (typically, the owner), who assumes the responsibilities of all three levels. Large businesses have many managers at each level to coordinate the use of the organization’s resources. Managers at all three levels perform all five management functions, but the amount of time they spend on each function varies.

Top Management: in business top managers include the president and other top executives, such as the chief executive officer (CEO), chief financial officer (CFO), and chief operations officer (COO), who have overall responsibility for the organization. Top managers spend most of their time planning. They make the organization’s strategic decisions, decisions that focus on an overall scheme or key idea for using resources to take advantage of opportunities. They decide whether to add products, acquire companies, sell unprofitable business segments, and move into foreign markets. Top managers also represent their company to the public and to government regulators.

Middle Management: Rather than making strategic decisions about the whole organization, middle managers are responsible for tactical planning that will implement the general guidelines established by top management. Thus, their responsibility is more narrowly focused than that of top managers. Middle managers are involved in the specific operations of the organization and spend more time organizing than other managers. In business, plant managers, division managers, and department managers make up middle management.

First-line Management: Most people get their first managerial experience in first-line managers, who supervise workers and the daily operations of the organization. They are responsible for implementing the plans established by middle management and directing workers’ daily performance on the job. They spend most of their time directing and controlling. Common titles for first-line management are foreman, supervisor, and office manager.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Shaping the Corporation


What will be the shape of the new corporation—the company that survives and thrives on the difficult path to the twenty-first century? Will it be a flattened pyramid, a networked cluster, a hollowed-out donut, or possibly even a shamrock?

These and other nonhierarchical possibilities stimulate a great deal of interesting speculation. The art of organization design is at a significant crossroads. Many of its old truisms are coming under fire, and few new proven ones have emerged to replace them. But at least some sense of direction for the new corporation is apparent: It will be a business with few walls. Its structure will minimize barriers between staff thinkers  and line doers, between functions and divisions, and between the company and the outside world.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight