Organizational Structures & Strategic Planning Assignment

Organisational Performance And Culture In Practice

Introduction - Organisational Performance And Culture In Practice

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The concerned report provides insights into the strategic planning organised by different types of organisations. It highlights the advantages and disadvantages of two contrasting types of organisations implementing different organisational structures. The range of products, services, and customer association with the organisational structure is correlated to get a better understanding. The link between the range of products, services, and organisational structure is also implemented. The prevailing impact of the external factors and trends are also considered in this report. The report takes account of two particular issues that the organisations are currently facing.

Advantages and disadvantages of two different types of organisational structures in different types of organisations

Advantages

The advantages of two contrasting organisational structures in two distinct organisations are discussed below.

Hierarchical organisational structure

The hierarchical organisational structure as followed by BMC company provides distinguishing advantages by allowing specialisation and clear chain administration (bmc, 2022) .

Clear chain administration

This particular organisational structure is defined by precise instructions and reporting proceedings in which the employees are aware of the reporting source and individuals who source back to them. The clear chain of command directs defined responsibilities and generates a hassle-free work environment. The subordinates can shift the paradigm of work according to the dynamics of knowing with whom the authority of modification lies (de Camargo Fiorini et al., 2018).

Specialisation

This organisational structure is renowned for compartmentalising distinct departments into varied sections. It aids in better work efficiency in large organisations handling several departments such as HRM, accounting, marketing, and financing. This system allows the concentration of particular departments with specific expertise, thus manifolding the work efficiency (Büyüközkan and Göçer, 2018).

Functional organisational structure

The functional organisational structure as demonstrated by Amazon provides advantages such as the scope of skill development and coherent chain administration (aboutamazon, 2022).

Scope of Skill Development

This organisational structure promotes the scope of skill development by appointing experienced members as mentors to groups consisting of individuals with similar mindsets and expertise. This alignment helps in the recurring growth and development through daily interaction between the same group members. It helps in multiplying the work quality within the scope of the department instead of waiting for seminars and specialised workshops (Podsakoff and Podsakoff, 2019).

Coherent chain administration

The preliminary result derived from this organisational structure is to ensure productivity. The coherent chain of administration ensures a concrete reporting system in which similar groups are placed under one large spectrum. It aids in efficient supervision even though the sphere is diversified and broadened.

Disadvantages

Hierarchical organisational structure

The hierarchical organisational structure has certain drawbacks like lack of unity and faulty flexibility.

Lack of unity

Due to the specialised diversification of departments according to their functioning, there might be no promising unity among the different departments. Sometimes, the authority might make decisions that may be seemingly unfair to one particular department and beneficial for others. This causes a disbalance of priority and leads to conflicts within the workforce (Liff and Wahlstrom, 2018).

Low morale

This organisational structure holds the absolute authority of the executives and delegates. The people in power might make final decisions without taking consideration and input from the loyal employee base. The lower morale within the employees does not back up innovation and leads to decreased work productivity.

Functional organisational structure

Communication gap

This organisational structure only promotes loyalty between specified team members. Thus, employees belonging to one particular team might not be aware of the entire functioning of the system. This also increases the risk of miscommunication within the departments working together on a project (Calabrò et al., 2019).

Range of products, services, and customers associated with each, and how they link to organisational purpose

The BMC company derives more than 84% of Forbes Global revenue with products ranging from core to cloud computing. This software company is considered one of the best product-based companies in Houston. The services range from complex IT solutions and regulations for handling cloud connectivity. This company hosts the IT department, equipment, and training programs for several companies. The expansion of the software products and web applications by BMC is in response to tackling the huge customer base. BMC has focused on global servicing, with over ten million customers enjoying their services worldwide (O'Dwyer and Gilmore, 2018).

Figure 1: Organisational Development.

(Source: O'Dwyer and Gilmore, 2018)

It can denote that such vast production and innovation aspects demand drawing the loyalty of the customers. The company mostly implements a hierarchical organisational structure to counterbalance its variety. The department has specific instructions for developing software that can solely focus on updating the system. It leaves the scope for other departments to focus on endorsement and financing. It also eradicates the possibility of mixing product strategies and designing. Thus, there is a direct relationship between the customer base, product diversification, catered services, and the established organisational structure (Al-Henzab et al., 2018).

Link between products, services, customers, and revenue and organisational strategy

The BMC organisational strategy is driven by innovation and industry-related automation. It helps them in providing services and software applications to the recipients distinguished with flexibility. The main component of the BMC organisational strategy is to provide space and time-efficient applications through which they can establish autonomous digital tools. It facilitates in making them at par with relevant digitisation and opportunities for disembarking monotonous and outdated systems. The correlation between the mentioned products and services rendered by the BMC company and its organisational strategy is highlighted. The revenue obtained from the company's profit turnover has a direct relation with the organisational strategy (Park and Tran, 2018).

The intention of BMC in revolutionising the business forum earned them an attractive revenue of over $ 2.5 billion. It has been derived from the data collected in 2021. The aim of BMC in following business level and functional level organisational strategies is to maintain the level of product quality while stabilising the general revenue obtained. It is backed up by research that in terms of revenue generation, these two strategies gain the maximum impact. The loyal customer base is attracted by these strategies with a special interest in product quality. Thus, the correlation between organisational strategies and revenue collected is mentioned (Dalla Pozza et al., 2018).

Current and ongoing impact on organisations of the range of external factors and trends

The impact of external factors and trends on the organisations are discussed in this following segment.

Technological factors

The technological factors involve the breakthrough of technology in the digitisation era. It involves the constant update of software required to keep the system relevant in the market. For example, the BMC company is concerned with producing core and cloud computing. It has to derive constant innovation from supporting new advancements in the cloud connectivity spectrum.

Economic factors

The dynamic economic stability of the particular nation in which the company is based gives direction to the administration. The abrupt impact of unemployment and inflation situations caused turmoil in the stabilised functioning of the company. BMC might have to alter its entire salary system and recruitment forum in order to retain the basic revenue turnover (Khan et al., 2022).

Legislation

The companies have no authority over the judicial system prevailing in the host nation. It has the liability to fit according to the legal obligations. It includes import restrictions, intellectual property regulations, and taxation, which can make or break a particular business plan in both local and global prospects.

Global factors

Companies such as BMC initiate global domination, and thus the sphere of business is widespread. The delegates have to consider international norms involving cultural and ethical practices prevailing in the foreign nation. The knowledge of social issues helps in formulating appropriate products to serve particular foreign audiences (Alimba and Faggio, 2019).