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  • Essay / Organizational Leadership - 1797

    Table of Contents:1. Introduction.2. Comparative analysis of the formal organizational structure of S&F Company with other organizational structures.3. Impact of informal culture on formal structure.4. Role of power and politics.5. Recommendation.Introduction: Faced with a technological revolution, the teleshopping and mail order industry must develop new, more practical ways to allow its customers to purchase their products. Over the past six months, Smith & Falmouth launched an e-commerce division: Smith & Falmouth On-line. This division is crucial to S&F's growth strategy over the next three years. Organizational structure refers to the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities. An organizational structure reflects the organization's culture and power relationships (McShane, 2002). Comparative analysis of the formal organizational structure of S&F Company with other organizational structures: The current organizational structure of S&F Company is a formal hierarchy mixed with limited informal communication between teams. . In a hierarchical structure, legitimate power is granted to individuals who then use it to direct work processes and allocate resources. There is direct supervision within the groups. The company structure here is hierarchical, where the chain of command goes down. This structure is different from other structures such as full informal communication and standardization because they are less rigid in their processes. Many organizations attempt to improve the quality and consistency of a product or service by standardizing work activities through job descriptions and procedures. Standardization coordinates work requiring routine and simple tasks, but is not effective in complex and ambiguous situations. Additionally, informal communication is a coordination mechanism in all organizations. This includes sharing information about mutual tasks as well as forming common mental models so that employees synchronize their work activities using the same mental roadmap (McShane, 2002). Impact of Informal Culture on Formal Structure Informal communication allows for considerable flexibility because employees transmit a large volume of information. via face-to-face communication and other media-rich channels, but this can take time. Therefore, as organizations grow, they develop a second coordination mechanism in the form of a formal hierarchy. Formal hierarchy is traditionally considered the optimal coordination mechanism for large organizations (McShane, 2002). To achieve S&F's goal: to become a leader in online sales channels and become a profitable unit, management must recognize the organizational structure, evaluate the current situation and work together to enable innovative achievements. Within large organizations, there is an informal culture that influences the