Introduction
Employees engagement and motivation is significantly affected by an organization structure and culture. It is important to note the change in employee motivation and engagement in organization activities at Oticon after the adoption of the spaghetti organization structure. Different organizations use various organization structures that affect the organization communication channels and the coordination of different organization projects. In this case, Oticon introduces a new organization structure that changes the organization culture and employee behavior. This is largely attributed to the improvement of the organization sales and creation of new products. This report aims at assessing how organization structure and organization culture affects the engagement and motivation of the work force.
Contemporary problems faced in employee management practice
This report aims at assessing the problem encountered in management practice as a result of poor employee engagement and motivation due to poor organization structures and culture. This report will assess the flexibility and the efficiency of organization depending on the existing organization structure and culture. The report will assess the role of an organizational structure in streamlining employee motivation and engagement in organization activities. This report will assess different approaches through which an organization can establish a new organization structure and also the success of different organization structures using Oticon business case as an example. This report will identify the role of organizational structure in developing a new organization culture and strategy to meet the organization needs in a dynamic market.
Literature Review
Organizational structure and communication channels are imperative in the success and the management of organization processes and projects. An organization structure establishes relationships between employees and the management as well as relationship amongst employees themselves. An organization structure can affect how communication is directed to an organization whereas communication remains an important management and organization operation tool. Without proper communication channels and management, an organization cannot meet its operation objectives as well as the implementation of a new strategy which help an organization in a changing, and the dynamic market could be difficult. This report will assess how information channels and an organization structure are tied together in implementing an organization strategy as well as initiating the use of technology in an organization. The organization structure and communication channels also affect an organization culture and values held together by employees can affect employee engagement and motivation (Horibe, 2016).
Organizations that have a rigid framework make it difficult for the employees to interact, hence limiting the organization ability to create new ideas and products (Savery, 2015). The adaptation of the project based organization structure in a business organization helps an organization to overcome the communication barriers and occupation rigidity by introducing a system that favors flexibility of the employees further improving their employee motivation and engagement in organization projects. Miner argues that an organization can harness technology through the establishment of a paperless office which further promote the engagement of the employees. In this case, sharing information is made easy through the use of computers and email which allow access to information for different projects at the same time (Miner, 2015). Digitalization of an organization communication also further improves the ability of the off-site organization offices to access information which leads to increased input on key ideas and establishment of better products solutions for an organization (Horibe, 2016).
Organization behavior and organization structure are significant in the creation of organization efficiency by influencing employees motivation and engagement in organization activities. Different organizations use different approaches to streamline the organization structure which improves the organization employees engagement (Miner, 2015). Many organizations are turning to project-based organization structure to improve organizational efficiency. Project based organization structure improves organization innovation, action orientation and motivation of the employees. Turner believes that a project based organization is the starting point for any organization seeking to establish research initiatives to improve organization knowledge in project management. The context for the latter coordination can further be expected to vary from situations where projects are operationally completely unrelated to cases where projects are mutually dependent upon each other, thereby creating operational dependency (Turner, 2016).
There is a significant relationship between an organization structure and the motivation and engagement of employees. Different organization structures affect an organization differently, traditional organization structures lead to inefficiency in organization production due to rigidities created by poor communication. It is important for the management to assess the ability of an organization structure to support new technology and effective organization communication which are important tools in improving employee engagement and motivation. In the recent years, project-based organizations have increasingly become common as organizations seek to improve employee motivation and engagement at the project level. Project based organization structure improves organization ability to share information and technology. Many organizations are using the project-based approach to reduce the number of organizational hierarchies which affect organization communication and flexibility (Robbins et al. 2015).
Project based organization approach increases employee engagement by increasing the contact between organization employees and the management. The ability of organizations to harness and share information and technology is based on the implementation of a good organization structure. Different projects can be coordinated with employees being given the freedom to choose which projects to be involved in. Project-based organization structure increases the freedom and flexibility of the working environment which improves the productivity of the employees (Lindkvist, 2004). Project based organization approach is a relationship-based organizational structure in which employees motivation and engagement is improved. Better interactions in a project based organization approach ensure that ideas and information are debated which leads to improved and more informed decisions. Through a project-based approach new ideas and improving on the existing ideas is possible which further strengthens the organization competitive advantage like assessed in Oticon improved performance after the adaptation of the project based approach and organization structure (Thiry & Deguire, 2007).
Individual discipline and management is a significant trend that can be observed in the performing organizations. High regulation of the employees leads to organization communication barriers and fragmentation of the organization structure causing poor employee motivation and engagement. Individual employee discipline refers to a scenario in which the organization employees are in control of their conduct and working pace. In this case, employees can manage themselves in accordance with the organizational target and objectives (Verzuh, 2015). This approach reduces the tension and stress by employees as they are allowed more freedom to choose when and how to work. This approach of management and organization structure reduces organization bureaucracy and simplify the organization structure making it easy for the managers to supervise the employees. An open project based organization structure makes it easy for the management to interact with the organization employees enabling to understand the major problems that an organization faces and improves employee motivation and performance within an organization (Borkowski, 2015). Unlike departmentalization in which employee concentrate on specific projects such as marketing, research and development and sales, a project based approach leads more employee engagement and motivation. Departmentalization leads to specialization whereas, a project based organization structure reduces employees specialization and monotony hence improving employee engagement. It is important to note that departmentalization, on the other hand, can hinder employee creativity and innovation as people are often working on the same projects time and again (Diana & Vanitha, 2016).
Employee motivation and engagement model
Reward based employee motivation and engagement
Employee motivation and engagement has been a significant problem and issue in management practice. A reward system is a good model and framework that has proved to increase employee motivation and engagement in organization activities. There are extrinsic avenues of employee reward system that improve employee engagement and motivation. Extrinsic rewards includes tangible rewards such as money which increases employee motivation and engagement in organization activities.
The Hetzberg`s two factor motivation model
The Hetzberg`s motivation model is based on two primary factors which include; motivator factors and hygiene factors. Motivator factors refer to the factors that increases employee satisfaction and motivate employees to improve their performance. Motivator factors in this case can include the ability of the employees to enjoy their work, recognition of employees individual efforts and career progression such as promotion opportunities. On the other hand, hygiene factors refer to the factors that can lead to the dissatisfaction of the employees hence poor motivation and engagement in organization projects in their absence. Hygiene factors include; organization structure, benefits, salary and the relationship between managers and the employees. Organizational flexibility
A project based organization structure ensures that most of the organization functions are timely regulated in that employees are only assigned to projects that they are best suited. This increases the success of the projects and also engagement of the employees to the projects which increases an organization yields and innovations. In this case the number of organization innovations doubles after implementing a project based organization structure. On the other hand, traditional organizations before the implementation of the project based organization approach have a hierarchical structure that is rigid and difficult to change because roles are predetermined in the...
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