Organizational Structure College
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Question 1: Describe and evaluate what Pfizer is doing?
Pfizer is the world’s largest research-based pharmaceuticals firm and also a well-known pharmaceutical company. So their most of the work depends on research, developing strategies and innovate. They were trying to find a new way of system which makes their work more effective and efficient. Pfizer find out that their worker spends more time on business research and data analysis to the creation of documents and other routine support like Surfing and making PowerPoints and also spending so much time on menial tasks rather than knowledge work. The average Pfizer employee was spending 20 percent to 40 percent of his or her time on supporting work(creating documents, typing notes, doing research, manipulating data, scheduling meetings) and only 60 percent to 80 percent on knowledge work( strategy, innovation, networking, collaborating, Critical thinking).
That’s why Pfizer starting to find a solution of this problem to increase their Efficiency and effectiveness. Pfizer build a new kind of structure by using Microsoft outlook wheretheir connecting to an outsourcing company where Pfizer can connect with different worker byemail where they can connect with any worker around world and get cost specification for theirrequested work. By using this process the time spent on analysis of data has been reduce, alsohave many financial benefits and employees also get rid of their boring work.
Question 2: What Structural implication-good and bad- does this approach have? (Thinking term of the six organizational design elements).
This approach “office of future concept” (it means Pfizer make a new concept of future office where they can connect their all offices around the world with each other and where any staff of the office can communicate, share information with another staff from one office to another office around the world) by Pfizer is good decision taken by Pfizer Senior director. This organizational structure also follows the six organizational design elements. As we know there are sixorganizational design elements. And they are:
1. Division of Work
3. Hierarchy Development
4. Authority, Responsibility and Delegation
5. Centralization vs. Decentralization
Division of Work: Division of the work means divide a job into different part. When a job is broken-down into a number of steps, and each step is completed by a separate individual leading to work specialization is called division of work. In the new organization structure Pfizer also divide their work into different part and also reduces the work load of their employees by specialization. Departmentalization: For different specialization Pfizer facilitated by putting specialists together in departments under the direction of a manager. These departments are typically based on the work functions performed, the product or service offered, the target customer or client, the geographic territory covered, or the process used to turn inputs into outputs. In new organizational structure Pfizer also departmentalize through different geographic area. For example: an employee of Pfizer can take any kind of information through one country employee to another country. Hierarchy Development: In Pfizer for the new organizational structure hierarchy development is also followed.
In this structure a single worker have to request to its upper level and after he or she receives the permissions he or she can start to assign a team to complete the work. Here they also have to follow a hierarchy level from upper side to downside. Authority, Responsibility and Delegation: In the new organizational structure of Pfizer the Authority, Responsibility and Delegation of each employees is also been decide and the authority of level is higher than the lowest level workers and also responsibility is also high for the upper level and low for the lower level. Centralization vs. Decentralization: Pfizer also choose the amount of centralization or decentralization that will allow them to best implement their decisions and achieve organizational goals. In new Organizational structure Pfizer also decentralized more rather than centralized like by using Microsoft outlook employee can connect with another employee of the organization of different geographic place.
Coordination: Coordination is the process of integrating the activities of separate departments in order to pursue organizational goals effectively. In new organizational structure Pfizer employee can easily coordinate with each other even though they are in different place with the help of OOF (office of future) concept it means (Pfizer make a new concept of future office where they can connect their all offices around the world with each other and wherein staff of the office can communicate, share information with another staff from one office to another office around the world) they can easily coordinate their work. This new organizational structure brings good prospects to the Pfizer Company and it also maintain by the six organizational design elements which made a good implication.
Question3: Do you think this arrangement would work for other types of Organizations? Why or why not?
Pfizer is a global pharmaceutical company. They sell their products all over the world and itsneed lots of documentations, researching, typing notes, manipulating data, scheduling meetingsetc. When a manager will do all these things he/she can’t concent rate on knowledge work likestrategy, innovation, networking, collaborating and critical thinking. For this reason Jordan Cohenfind out a solution and create a button on Microsoft Outlook where an employee can click on thatbutton and connect to an out sourcing company who can do their required works by a specific amount of money. I think it’s a very innovative solution by which a company can get much more financial benefits as its saving time to analysis the data and employees are able to concentrate ont heir knowledge work. By this method Pfizer’s financial benefits are impressive. I think this innovative solution is only suitable for larger companies who are doing their businessesall over the world. It can be pharmaceuticals business or any other .Because they are doingbusinesses globally and they have high resources, financial backup etc. So they can think aboutthese kinds of innovative solutions to provide more time to their employees for concentrate onknowledge work which will be more effective for the company in future. So I think if they use thismethod they can be successful like Pfizer pharmaceuticals.
Question 4: What role do you think organizational structure plays in an Organizations Efficiency and effectiveness?
Organizational structure means the way of arranging the works and people within theorganization to perform the organizations different activities and attain the goal of an organization.When an organization is small in a size it does not need a formal structure but for a bigorganization a formal structure is essential because it needs to control each of their works andactivities through an organizational structure. A good manger should consider organizationalstructure as an important part of organizations activities. He or she should design anorganizational structure that allows employees to effectively and efficiently do their work. Anorganizational structure plays an important role in the organization to work more efficiently andeffectively. By selecting a good organizational structure for an organization can be increase theefficiency and effective ness rate of an organization. Organizational structure can play a great rolein organizations efficiency and effectiveness in many ways like –
1. A good organizational structure can increase the effectiveness of communication withinthe organization. Any employee within the organization can get his or her required informationbefore taking a decision and they can also communicate with other people inside or outside theorganization. By establishing an organizational structure it makes easy gather information or different communication process within the organization. Thus it also can increase theeffectiveness of organizations works or activities. 2. A good organizational structure can also increase the management process of anorganization and can make the management work more efficient and more effective. Whileorganizational structures create in the organization it shows the formation of the organization forexample: by organizational structure it can build in a chain of command that empowers employeesto greater productivity.
Organizational structure facilitate communication And provide a clear set ofprocedures to create or make process improvements. 3. Organizational structure determines the goals of an organization and show the purpose andfunction of the organization. So its shows the clear sets of goals of an organization which increasethe effectiveness of the organizations work. 4. Using Organizational structure for a long term can reduce the cost of different activities andalso increase the experience of the employees in the organization which make organizations workmore effective and efficient 5. Main purpose of the organization structure is reduce the time of different activities in anorganization through a structure working process and also cut different dispensable cost of theorganization which increase the efficiency and effectiveness of an organization.Organizational structure plays an important role in an organization’s effectiveness and efficiency.
This can be increase by building a good organizational structure that suits the organizations.