Team A
University of Phoenix/MGT/311
February 17, 2012
Organizational structure has become a vital asset for most thieving business in the world today. Its main purpose is to define how job task are formally divided, grouped, and coordinated within a company (Robbins & Judge, 2011). Riordan Manufacturing has decided to change the way their organization is structured through the implementation of a more formal management system to help achieve company goals.
Formal and Informal Power Structures
Riordan Manufacturing has decided to create a more formal system recently to manage their customer information. This type of organizational structure will allow managers to monitor or control different work assignments delegated to different employees from the top to the bottom. This will be a change from the informal organizational structure used previous to manage customer information within the company. Informal organizational structure within an organization can cause huge concerns with co-workers because there is no one person in charge, and the work assignments can be carried out with no urgency or seem less important to others within a group setting.
Appropriate and Effective Organizational Structure With Riordan’s focus on one customer management system the most appropriate and effective organizational structure would be the chain of command. “The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom” (Robbins & Judge, 2011, p. 491). Each level of employee will have the same deciding power as another employee of the same level. Riordan will decide how much deciding power a certain level shall have from the bottom-up when concerning its customer management system so that the chain of command can be developed and implemented.
Potential Effects on