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Three Aspects of Organizational Architecture

Paper type: Essay
Pages: 2 (270 words)
Categories: Architect, Architecture, Business, Choice, Decision Making, Life, Management, Organization
Downloads: 41
Views: 461

It is really important to have a right company structure and policies for any organization to be effective. It has been seen that if we don’t have a good structure, the likelihood of company stopping working to accomplish its objectives is more. There are lots of tools like benchmarking, reengineering, outsourcing, just-in-time production to identify and enhance organizational problems but they are all focused on their own particular location and not supply a complete end-to-end service for companies.

In order to conquer these issues, the book Managerial Economics and Organizational Structure (Brickley, J., Jerold, Z., Jr., & & Cliff, S. C. W., 2006) provides framework that determines 3 vital elements of corporate company: 1. The project of choice rights within the company: This suggests person who makes essential choice about business should have all the appropriate information available.

In other words, only people who have all the relevant information should be designated to make key decisions.

This will enhance the possibilities of setting the organization in the right direction. 2. The methods of rewarding individuals: This is rewarding individuals who make right decisions. The senior management who assigns decision making rights to employees should also consider giving incentives or rewards based on their performance. 3. The structure of systems to evaluate the performance of both individuals and business units: A structure or process needs to be established to integrate reward or performance-evaluation system for both individuals and business units. Conclusion: These three approaches rely on the basic principles of economics and provide an integrated approach to solve number of disciplines like accounting, finance, information systems, marketing, management, operations and strategy.

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Three Aspects of Organizational Architecture. (2016, Dec 06). Retrieved from https://studymoose.com/three-aspects-of-organizational-architecture-essay

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