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BECs Organizational Structure and Management Process

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BEC’s organizational structure and management process should enable the company to achieve its goals. Since setting corporate goals is a part of Zheng’s overall strategy making process, if follows that BEC’s organizational structure should depend on its strategy of rapid expansion to gain a bigger market share (Gitman & McDaniel, 2008). Zheng should work to untangle the unwieldy organizational structure which has been in place since 2006. He should focus on flattening BEC’s six layers of management to have more executive managers reporting directly to the CEO. As a result business units will have more autonomy to execute their projects and plans combined with increased accountability for their results. Projects will well be managed without conflicts between department and project managers. 

To improve organizational performance and achieve long term objectives, BEC should seek to reengineer its business process. For BEC to meet the formidable challenges of the future, the company should turn to reengineering. Gitman & McDaniel (2008) says that reengineering is the complete redesign of business and management structures and processes in order to improve operations. At BEC the goal of reengineering will be to redesign its management structure and business processes to achieve improvements in cost control, product quality, customer service and speed. The BEC’s reengineering process will result in a more efficient and effective organizational structure that is better suited to the current and future competitive climate of the industry in which BEC operates in.  

Horizontal Organizational Structure

BEC should adopt a horizontal structure which is the arrangement of work by multidisciplinary teams that are responsible for accomplishing a process. Through this structure employees at BEC will take collective responsibility for customers and they will be working together to accomplish project tasks.

Daft, Murphy & Willmott (2009) noted that horizontal structure is created around cross-functional core process rather than tasks and functions. Through the horizontal structure people on the team are given the skills, tools, motivation and authority to make decisions central to the team’s performance. Team members at BEC will be constrained to perform one another jobs and the combined skills are sufficient to complete major project tasks (Daft, Murphy & Willmott, 2009).  Through the horizontal structure teams at BEC will have the freedom to think creatively and respond flexibly to new challenges that arise.

Through the adoption of the new structure, BEC customers will play an important role in driving the organization. Effectiveness will be measured by end-of-process performance objectives, based on the goal of bringing value to BEC’s stakeholders including customers and investors (Daft, Murphy & Willmott, 2009). The most significant strength of the horizontal structure is that it dramatically improves flexibility and responsiveness. Through the horizontal structure, BEC will be able to direct its attention toward the customer, leading to greater customer satisfaction as well as improvements in project execution and efficiency.

Because there are no boundaries between functional departments, employees can take a broader view of organizational goals rather than being focused on the goals of a single department or project. Daft, Murphy & Willmott (2009) says that the reengineering of the organizational to a horizontal structure will improve the quality of life for employee by giving them opportunities to share responsibility, make decisions and contribute significantly to BEC. Adopting this structure will reduce conflicts between project managers and department managers because the structure coordinates the activities of various departments and units towards common goals and project managers will be reporting directly to the chief executive officer. The new structure will enable Zheng to allocate positions and workforce to ensure that the necessary work is done. 

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