Sample Essay
Safe Mint uses a hierarchal or mechanistic structure for its organization. It has a clear line of command with the sixty members teams right at the bottom that are supervised by three supervisors for each team. These supervisors report to the project managers who then report to the board of directors. This structure holds the following attributes as listed by Robbins and Judge (2006), high specialization, rigid departmentalization, clear chain of command, narrow spans of control, centralization and high formalization. All of these attributes are visible in Safe Mint UK Limited where Mr. Mint makes all the decisions. Robbins and Judge (2006) also talk about the importance of cost minimization for an organization based on this structure.
The organizational philosophy branches out of its structure, wherein Mr. Mint does not believe in investing in his employees or purchasing new plant equipment. He views this investment as unnecessary costs that will not add to the bottom line of the company. As a result the company is facing problems and is destined for losses because its manufacturing plant is not as efficient as those of competitors and its employees are demotivated. He also does not invest in training and development of employees of his company that could actually help increase production.
This cost minimization strategy that is directly related to the organizational structure of Safe Mint provides the reason behind only hundred and seven employees working for key organizational functions of marketing, finance, personnel and sales. The Personnel Manager Mr. Scotty was an IT Manager three months ago and it is questionable if he is qualified for managing personnel. His attitude towards employees being “lazy idiots” proves the fact that he is not suited for this job. In the contemporary business strategy employees are treated as internal customers of the organization. They are considered as human capital and developed likewise. Ron Ashkenas (2007) implies that structural shifts are common in modern day organization from subtle changes to overhauls and monitoring structural design to incorporate changes in external environment is necessary. The organizational structure of Safe Mint is unacceptable in the present day business environment. Structural shifts are common in modern day organization from subtle changes to overhauls. This structure begets problems for Safe Mint as the employees feel not cared about, their needs are neglected and they become demotivated. This lack of motivation results in absenteeism and productive losses to the company.
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