Three Aspects of Organizational Architecture Essay
It is significant to have a right organization structure and procedures for any organization to be successful. It is seen that if we don’t have a fantastic framework, the probability of organization failing to achieve its goals is far more. There are many equipment like benchmarking, reengineering, outsourcing techniques, just-in-time creation to identify and improve organizational problems but they are all centered on their own certain area and never provide a total end-to-end answer for organizations.
In order to defeat these complications, the publication Managerial Economics and Company Structure (Brickley, J., Jerold, Z., Junior., & High cliff, S. C. W., 2006) offers structure that recognizes three critical aspects of corporate organization: 1 . The project of decision rights inside the company: This suggests one who makes essential decision regarding companies really should have all the relevant information available. In other words, just people who have all the relevant info should be designated to make important decisions. This will likely enhance the likelihood of setting the business in the right direction.
2 . The methods of rewarding people: This is fulfilling individuals who make right decisions. The elderly management who have assigns decision making rights to employees also need to consider offering incentives or perhaps rewards depending on their efficiency. 3. The structure of systems to gauge the performance of the two individuals and business units: A structure or process needs to be established to integrate prize or performance-evaluation system for both individuals and business units.
Conclusion: These types of three approaches rely on the standard principles of economics and offer an integrated method to solve volume of disciplines like accounting, fund, information devices, marketing, administration, operations and strategy.