Organizations of Adaptive design

An organizational structure is essential for enhancing operational effectiveness

An organizational structure is essential for enhancing operational effectiveness because it gives employees at all levels of a company clarity. The organizational structure of Evo is discussed in this essay. The study will also discuss organizational structure-related influences.

Evo’s decentralized organizational structure

Evo is a business that uses a decentralized way to operate. The organizational structure of the company complies with the definition of a decentralized system, i.e., a sort of organizational structure that assures that various individuals are in charge of various business decision-making processes and managing the company (Phillips & Gully, 2013). In the organization, employees at all levels have some autonomy in making business decisions. For instance, due to the large size of the Company and its operations, Phillips decided to delegate duties to skilled managers in the organization. The changes led to the creation of department heads who are accountable for the different departmental responsibilities and decision-making (Phillips & Gully, 2013). In this manner, the Company can be managed more efficiently and effectively. Furthermore, Evo’s employees have also been given some autonomy in making decisions as regards customer service. For instance, the staff who deal directly with clients have been charged with the responsibility of making individual decisions concerning how to ensure excellent customer experience and satisfaction. Therefore, the Company is decentralized.

Likely adoption of a taller, more mechanistic structure

To accommodate growth and change, is the company likely to adopt a taller, more mechanistic structure?

Evo’s top executives are not likely to adopt a taller, more mechanistic structure. This is because the company does not possess the trait of a mechanistic organization. Mechanistic organizations have centralized structures with a fine division of labor and rely on management control (Phillips & Gully, 2013). Such organizations are characterized by an extensive use of rules, regulations, and operating procedures with no or little flexibility. In mechanistic organizations, employees normally work separately and focus on one task. In addition, they have tall hierarchical organizational arrangements where top managers have more power over their subordinates (Phillips & Gully, 2013). Evo is a fast-growing and changing company that emphasizes teamwork and coordination of tasks. The company’s operational strategy emphasizes the need for flexibility in performing tasks and quick decision-making processes, therefore, cannot support a taller, more mechanistic structure. At the same time, the company encourages employees to make their own decisions on how to satisfy customers. In other words, Evo is a decentralized company with a work plan that cannot work if a mechanistic structure is adopted. Therefore, top executives are not likely to seek a taller, more mechanistic structure because it might reduce employees’ level of autonomy and flexibility, which are considered crucial aspects when adapting to business changes.

Factors influencing the company’s organizational structure

Factors that influence the Company’s organizational structure

Company size is one of the factors that influence the company’s organizational structure. Evo has realized more than 70% growth rate annually and is currently operating an organization with more than 60 employees (Phillips & Gully, 2013). The large size of the company and employees necessitates a more intense and formal organization structure. Therefore, the size of the company is a factor that has contributed to Evo’s adoption of a decentralized organization structure. Also, Evo’s organizational culture defined by flexibility has influenced the company’s strategy. Phillips encouraged flexibility in business operations in order to meet consumer expectations. However, as the company grows, the only way to continue enhancing flexibility is by decentralizing the Company’s decision-making processes (Phillips & Gully, 2013). The other factor is the Company’s life cycle. Business owners who have an intention to expand their businesses normally require a more formal organizational structure. Evo has realized remarkable growth under Phillips’ management, and has since continued to pursue more progress. To achieve this, Phillips had to implement a decentralized structure to enhance efficiency and profitability. Therefore, the need to enhance the company’s growth necessitated decentralization. Lastly, Evo’s external business environment also influenced the adoption of a decentralized structure. Evo operates in a dynamic environment where consumer needs and preferences constantly change. Therefore, to meet these needs, Evo requires a system that gives employees autonomy in making decisions regarding how to best satisfy customers (Phillips & Gully, 2013).

Conclusion

Conclusion

In conclusion, the paper has discussed various aspects of organizational structure with regard to Evo. According to the paper, Evo is a decentralized company. The paper has concluded that top executives are not likely to adopt a taller, more mechanistic structure. Also, according to the paper organizational culture, size, business environment, and lifecycle are the factors that influence the Company’s organizational structure.

Reference

Phillips, J. M., & Gully, S. M. (2013). Organizational behavior: Tools for success (2nd ed.). Boston, MA: Cengage Learning.