Analyze the existing structure of an organization of your choice to find out its drawback and propose restructuring to make it more effective and efficient.
Teacher’s Name: Muhammad G. Sarwar PhD
Course Name: Fundamentals of Management
Date: April 2014
Md. Saifur Rahman
Roll No. 25
Human Resource Management Program
Civil Service College, Dhaka, Bangladesh
Organization structure may be defined as the established pattern of relationships among the components of the organization. Organization structure in this sense refers to the network of relationships among individuals and positions in an organization. While designing a good structure, the managers too must look into factors like benefits of specialization, communication problems, and problems in creating authority levels etc., before designing the organization structure. In this survey I have mainly covered the Small and Medium Enterprise Foundation (SME Foundation) which is established by the Government in august 2007. The organization is mandated to perform a variety of catalytic, policy-advocacy, promotional and developmental function to enable the SME sector to contribute forwards spurring private sector led-economic growth and social progress. Organizational Structure:
An organizational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Overview of Organization under Analysis:
SMEs are recognized as engine of economic growth and employment generation for sustainable industrialization in both developed and developing countries of the world. In context of Bangladesh, there is no alternative of small and medium enterprises for rapid industrialization and national economic growth through lower capital investment and employment generation. The SME Foundation is playing its role in helping the SME entrepreneurs including the women entrepreneurs by conducting various programs with an aim to develop the SMEs of Bangladesh. One of the major aims of SMEF is to bring the grassroots entrepreneurs into the main stream of economic development through employment generation, reduction of social discrimination and poverty alleviation. The SMEs constitute backbone of the national economy of Bangladesh. There is a very high density of SME population in Bangladeshi industrial economy. The Sme account for over 96% of the private sector industrial establishments, provide employment opportunities to roughly 78% of the non-agricultural labor force, and contribute to nearly 30% of the country’s GDP. Analyze the Existing Structure:
During the study and discussion with the concerned people, I have seen that this organization forms functional structure.
Figure: Existing Structure of SME Foundation.
Problems of sub-units at lower levels do not receive adequate attention of higher level managers while some of the activities tend to be over-emphasized. Functional units become unwisely and difficult to manage when there are diverse kinds of activities performed in large number of sub-units. Personal contact between superiors and subordinates become rare, and flow of communication is slow leading to problems of coordination and control. Re-design the Structure:
Figure: Re-design Structure of SME Foundation.
The main advantage of this re-design structure is that, there is functional specialization in each unit, which leads to operational efficiency of people engaged, and the organization as a whole derives the benefit of specialized operations. The heads of the functional units are in direct touch with...
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