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Organisational Structure of American Family Insurance

Organisational Structure of American Family Insurance

Discuss Organisational Structure of American Family Insurance within the Human Resources Management (H.R) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Types Of Organizational Structures Regarding Types of Organizational Structures, I will first critically note that an appropriate organizational structure for ...

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Netra Shetty
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netrashetty
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Organisational Structure of American Family Insurance - February 1st, 2011

Types Of Organizational Structures
Regarding Types of Organizational Structures, I will first critically note that an appropriate organizational structure for any given company is a very elusive animal, indeed. Every company tends to organize itself differently, so there is no absolute right and no absolute wrong way to design an organization. Appropriate organizational structure depends upon the unique strategy of the business, its unique customer base, its
Organizational Structure:
A Critical Factor for Organizational Effectiveness and Employee Satisfaction 7
unique sense of products and services, and its management of these considerations as they are dispersed throughout the enterprise.
The most common organizational types may be classified as follows:
�� The Functional Structure
�� The Divisional Structure
�� The Matrix Structure, and
�� The Horizontally Linked Structure
Before we discuss each of these structures, I’d like to note that with any given company, and especially with a very large company (an organization with ten, fifteen, twenty, forty thousand people, for instance), we typically do not see that a single organization adheres to a single organizational structure. Different structures may benefit different portions of the organization in both subtle and profound ways.
For a hypothetical example, the very controversial Matrix Structure may work extremely well in a company’s research and development environment; however, the sales environment of the same company may benefit greatly from the Divisional option. The distinctions and benefits of these structures will become more apparent as we discuss each of the organizational types.
Different organizational structures may benefit different portions of the organization in both subtle and profound ways.
Dimensions of Organizational Structure
Think about any Organizational Structure and visualize an Organizational Chart in two dimensions: There is the Vertical Dimension, in which the organization is considered to be either a tall or a flat structure; and there is the Horizontal Dimension, in which an organization is considered to be either wide or narrow.
The Vertical Dimension of Organizational Structure
The Vertical Dimension of the Organizational Structure basically lays out who is in charge of whom and who makes the decisions inside an organization. It is the hierarchy of authority within a company, and herein we find something that we call the Span of Control, which plays an especially important role in our discussion of the Functional Structure.
Span of Control is a very simple concept: It refers to the number of people who can report to a single manager inside of the hierarchy. However, the optimal Span of Control is very difficult to quantify, because it varies based upon the type of organization and the work being executed; the nature of the work, the level of Formalization, the skills of the people, the business culture, and the management style of the organization all influence the optimal Span of Control within any given company.

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According to Smith and group (2004), “a transformational leader strives to create new learning opportunities for followers and tends to act as a coach or mentor” (81). This is based on the dimension of individualized consideration where the leader serves as the mentor of the followers. New processes of learning and body of knowledge are proliferated and supported by the leader. Ethical practices are very crucial (Price 2003). In managing change, the expertise of the leader based on professional experiences is handed over to the followers. In this way, the knowledge of the followers are amplified and improved. The leader who shares knowledge to the followers contributes to the establishment of new conventions and set of ideas that the organisation and its people can use in pursuing premeditated objectives. This situation also facilitates the emergence or development of organisational culture. For example, on the case of Google where there is no formal culture or organisational structure. Every organisation must have a core management structure (Hitt et al. 2003). Although Google has Sergey and Larry plus Schmidt as key figures, the rest of the staff are not strictly structured. Literatures on organisational structure and control acknowledge solid management structure as a basic element in strategic planning and decision-making (Thompson and Strickland 2003; Kay 1996). On the case of Google’s project engineers and even the rest of the workforce, the unclear definition of management structure can lead to organisational conflict. The leader is unable to teach the followers the needed skills or information that can possibly avoid or reduce risks. In transformational leadership, there is a high regard on the role of leader as reputable head of the group. The lack of hierarchy in Google resulted to confusion about control and decision making power and practically affects overall working conditions. To address this, leaders must able to provide established body of knowledge that will guide the engineers and project managers in making excellent decisions for the benefit of the whole organisation. In organisational learning, Bass (1996) declares that transformational leaders accept the mistakes of their follower because they believe that this is an avenue in acquiring new learning. Provided that the follower is able to realise his/her mistake, it is an advantage. The activities of the organization require transformational leaders to combine initiatives with taking the presence of risks as a critical feature of success and readiness to hold more helpful systems and practices

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