Organization Theory in Action
Organization Theory in Action
The organization structure could be the catalyst of the problems resulting in disgruntled employees. First, the degree to which the authority of decision-making is concentrated in the upper levels in the organization is high. The company is centralized and most of the decisions are made by the top executive officials. The centralization of the company’s operations could be leading to the inefficiencies experienced which have even led to losing top talent from the company. Additionally, the structure of the company is not formalized. The company’s procedures, rules, policies, and job descriptions have not undergone explicit articulation. As such, the employee behavior is uncontrolled.
What kinds of design choices do you need to make to solve them?
Second, formalizing the company in its structure will help in reducing the ambiguity and, therefore, provide a sense of direction to the employees. The employee behavior will be controlled to ensure that they have little autonomy and that they will decide each case independently. Formalization will also clarify on the employee bonuses as forms of appreciation. The top management will, therefore, be obliged to appreciate good performance from the employees based on the set policies. However, the company should avoid extreme formalization because it leads to reduced innovativeness among the employees (Jones, 2013). Extreme formalization also leads to confining employees to behave in a certain manner. The effects of formalization will also be monitored to ensure that the employees do not become demotivated and not to lose their job satisfaction.
References
Jones, G. R. (2013). Organizational Theory, Design, and Change (7th ed.). New York: Pearson Education.
