Advantages Of Organisational Design

1019 Words5 Pages
In an era of digital information, organisational management is influenced by the transition from traditional methods to information age practice in order to sustain the company’s success in a competitive market. The role of a budgeting system underwent modification throughout the latter decades, initially it represented ‘‘ a set of coordinated financial plans’’ which developed into ‘‘ a wide ranging -management system for controlling the business, driving management behavior and rewarding performance’’(Jeremy Hope & Robin Fraser, 2000, p. 34) while the main motive was to establish control. Hope and Fraser (2000) stresses the importance of understanding that ‘‘there is a fine line between alignment and control’’(p. 35) including the dangers…show more content…
Organisational design is ‘‘the manner in which a management achieves the right combination of differentiation and integration of the organisation 's operation in response to uncertainty in the external environment, differentiation is the subdivision of functional or department units and integration refers to the linking of differentiated units to achieve unity of effort in working toward organisational goals’’ ( )
Organisational design and devolution is defined as the ‘‘Delegation or passing of authority, duty and power by transfer’’. The wide spread approach is to focus on reengineering, flattening of hierarchies and teamwork were the result inevitably leads to delegation of control within an establishment of coordination and accountability. Hope and Fraser (2000) states that ‘‘delegation and coordination don’t make comfortable bedfellows, a constant battle is being waged in most large organisations between the forces of decentralized initiative and centralized coordination’’ (p.
…show more content…
32-33 )

Organisational culture refers to the values that advances to the psychological and social ambiance within an organization, its characteristics involve the manner in which business is conducted , treatment of customers and employees, freedom in decision making, innovation, the movement of information and power across the hierarchy and finally the response of employees towards organisational objectives( ). Performance management is an evaluation of employee, procedures or other elements that leads to the achievement of company goals.

In the case of organizational design and devolution, decentralization is limited while autonomy is preferred due to the resulting self governance that provides freedom and ability to act. ‘’The key to autonomy isn’t to try to empower cost centers but to give more responsibility and accountability to a greater number of business units for value creation’’( Hope & Fraser, 2000, p. 32) , it highlights the issues involved in the enforcement of traditional performance management model and depicts the resulting budgeting systems as a limitation in an age of change as it promotes coercion and aims at cost

More about Advantages Of Organisational Design

Open Document