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The intranet site for Riordan Manufacturing comprises various Management Information Systems (MISs) that are used to link various departments within the organization. The information systems provide the employees with readily available information on various aspects of the company such as changes in customer tastes and preferences. The systems contain various charts, diagrams and files in which information is stored.
a)Formal power structure
The following diagram illustrates the formal power structure in Riordan Manufacturing.
As shown above, formal power structure at Riordan Manufacturing is hierarchical in nature. The most powerful person in the organization is the President followed by the vice-presidents. Formal power in the organization begins at the top-level management and tickles down.
b)Informal power structure
At Riordan, informal power is not well defined. However, some employees are very influential and have successfully led others in realizing organizational goals and objectives, for example, a salesperson came up with a new method of exploring new markets that enabled Riordan Company to reach more customers.
In my opinion, excessive power and intolerable political structure may cause repulsive behaviors amongst employees. On the other hand, effective use of power and politics in the organization would create a cooperative environment amongst employees.
The most appropriate and effective organizational structures for Riordan Manufacturing that will help them accomplish their planned changes
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An organizational structure is the hierarchy of members of an organization and their functions. An organizational structure thus provides an outline of how the organization is lead, governed and managed as well as the decision-making processes within the company.
From my part, the most appropriate organizational structure for Riordan Manufacturing is a functional organizational structure. A functional structure would allow for easy and effective management of people and operations. A functional structure is whereby members of an organization who perform similar or related tasks are grouped together (Robbins & Judge, 2011). Functional structures often results into increased operational efficiencies.
Moreover, Denison (2010) states that functional structures are more successful and efficient in managing large organizations, for instance, Riordan Manufacturing. Functional structures at Riordan would also result into increased productivity at low costs, hence high profitability.
Functional structure would positively influence employee behavior by allowing for adequate coordination and specialization amongst employees. Contrary, it may also result into lack of proper communication between members of the organizations, especially horizontal communication amongst employees. Employees may become reluctant to give information to other functional groups. Employees may also become reluctant to work with other members of a different functional group. Additionally, Employee behavior may become inflexible or rigid, thus leading slowness within the organization.
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The culture of the company is characterized by collective decision making, clear and open communication as well as a hierarchy of command from top-level management to junior employees. The company believes in empowering and motivating employees through rewards.
Corporate culture refers to a set of generally accepted values, rules and regulations or norms within a particular organization. Some of the positive influences of corporate culture on employee behavior include encouraging open communication within the organization, thus leading to cooperation. Robbins and Judge (2011) also assert that corporate culture affects how employees communicate with each other. Clear and open communication often builds employee loyalty. A corporate culture that allows individual decision-making also enhances independences amongst employees. This makes employees feel more valuable and important in the organization. Similarly, less bureaucratic corporate cultures also facilitate quick and efficient decision-making.
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Moreover, a corporate culture that embraces rewarding employees also motivates employees; hence, employees become more loyal to the organization. Employees are also encouraged to work harder towards attainment of organizational goals and objectives. A corporate culture that provides flexible working schedules also motivates employees. The employees also become more energized to work.
In contrast, poor corporate cultures result into low satisfaction of employees. Consequently, employees develop negative attitudes towards work and the organization. This leads to low involvements and commitments at the workplace. Poor corporate cultures also distort communication amongst employees, hence lack of sharing of informatiom.
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According to Davis, poor corporate culture also lead to increase in fear amongst employees, lack of trust, increased resistance to change, inflexibility as well as high stress levels amongst employees. Thess lead to poor performance, low motivation and decline in productivity.
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