Question 7: A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.
Answer:
The suggestions are:
1. To overcome the limitations of formal organisation, the management should encourage workers to interact and socialize with each other through get- togethers and outings. In this way, everyone will interact and like minded people will come closer. The net result will be a more satisfied workforce.
2. The management should also introduce employee suggestion systems so that good suggestions can be implemented and rewarded. The communication channels should be open so that a sense of belongingness is created in the company.
3. The management should try to decentralise organisation structure.
4. The suggested area where the business can be diversified is textile machineries like embroidery units, sequencing units, buttoning units.
Benefits the company will derive from these changes:
- Introduction of informal interaction between employees will help in fulfilling social needs of the employees. It will enhance their job satisfaction and give them a sense of belongingness in the organisation.
- Quick decision making will also take place since prescribed lines of communication will not be followed and faster spread of information will give quick feedback.
- Introduction of employee suggestion systems will result in increased motivation for those employees who make good suggestions. This also helps in reduction of labour turnover. Introduction of decentralisation will also help in this.
- All the above will help in fulfilling organisational objectives and eliminate the inadequacies of formal structure.
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