Introduction to Organisations and Management Essay - 2

Introduction to Organisations and Management - Essay Example By comparing the two companies we will try to learn how these challenges can be solved. The difference in the management style of both the companies will also be discussed under the light of relevant theories of management and business. Watsons Engine Components and H&M Consulting are the two companies that will be discussed in the report. Watsons Engine Components is a manufacturing company of parts for car engines. It is a family owned business and is in a lot of trouble because of the increased competition in the industry. The human resource management issues are also staring the company right in the face. On the other hand, H & M Consulting is a consultancy company and has made massive inroads in many engineering and management sectors all over the world. Since its inception in 1989, it has grown into a large organization with a global presence. The company is doing very well and has a friendly culture which in turns yields good profits for the company. The differences between th ese two companies will be highlighted in the report. Organizational Design and Structure The first area of difference between the two organizations is the organizational structure. Structure in companies is very important because all communication is done within the organization according to its structure. The lower levels of employees communicate their demands and insights on the business through the structure. This is why the importance of organizational design in great. A major chunk of the problem of Watsons Engine Components lies in its organizational structure. The structure of the company is hierarchal and old fashioned. In a hierarchal structure, the flow of information is very slow. The communication gap in the company is very evident from the highly unionized employee base. When the voices of employees are not heard they feel compelled to make such forums where voices are raised. It is actually an individual need, to raise his or her voice about the work he or she is doing and in absence of proper communication channels unions are formed. Cross-functional integration is very important in environments where demand is unpredictable (Germain, Claycomb, & Droge, 2007). This integration is also lacking in Watsons Engine Components. The company is not interested in training employees so that they can work in different areas. The employees are not even motivated themselves to work hard because of the structural issues with the company. Employees working at the lowest level have great ideas about improvement of a product but these ideas are not heard because of the vertical structure of the organization. Workers find it difficult to communicate their ideas to the top management. The business activity of Watsons Engine Components requires a structure that is flexible. The company produces complex products that are engine parts. Innovation is actually required when manufacturing complex products and design structure is very important when developing complex pr oducts (Danilovic & Browning, 2007). This is because innovation will only take place when ideas from employees are listened to and implemented. In a business of manufacturing, the company should have a decentralized structure and a small company like Watsons Engine Components should have an open door policy. H & M Consulting, on the other hand, has a much-decentralized structure and this is the reason for their success.