NATIONAL ECONOMICS UNIVERSITY

Faculty of Business and Management

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INDIVIDUAL ASSIGNMENT
ORGANIZATIONAL DESIGN

Name: Nguyen Tra My

Student ID: 11214060
Class: EMQI63

Hanoi, 2024
 By learning a step-by-step guide to designing organizations that covers key
aspects such as goals, strategy, process, people, coordination, control, and incentives,
we employ a unique series of 2 x 2 graphs for an integrated and spatial approach to
assess and plan organizational design.

This table just only shows the fit among configuration, organizational
complexity, environment, strategy, and goals. In each of the columns A, B, C, and D,
the fit relations can be read vertically from top to bottom.
Column A showcases a fit among: the blob, a simple configuration, a calm
environment, a reactor strategy, and ill-defined goals. The blob organizational
complexity, representing the firm that does not formally divide its work into subunits,
aligns well with a simple configuration which is a straightforward organizational
design. This simple configuration works well in a calm environment where there are
fewer unpredictable changes and adjustments required. Besides, the simple
configuration aligns well with a reactor strategy, suited for reactive situations
without a strong goal focus. A reactor strategy, which is reactive to immediate
situations without a strong focus on predefined goals, complements the simplicity of
the configuration and the calmness of the environment. The ill-defined goals is
acceptable in this context, as the reactor strategy allows for adaptability and quick
adjustments based on the prevailing circumstances. This alignment is effective when
the executive has sufficient time to address the configuration's low information-
processing demands.
 For example, a small grocery store in a calm and familiar local environment, the
store can operate without the need for extensive formal structures. The reactor
strategy fits well here, allowing the store to adapt its product offerings, displays, and
promotions based on the immediate needs and preferences of the local community.
The goals of the store may be somewhat ill-defined, focusing on maintaining
customer satisfaction, community engagement, and a personalized shopping
experience rather than specific, quantifiable targets.
Next, column B showcases a fit among: the tall complexity, the functional
configuration, the varied environment, the defender strategy and the efficiency goal.
This alignment is effective in a varied environment that is both predictable and
complex. The defender strategy, which aims to maintain the firm's position in the
market, is well-suited for this case. The efficiency goal emphasizes streamlined
operations and resource utilization, aligning with the structured and detailed
coordination facilitated by the tall structure and functional configuration. Customers
and clients are usually continuing, frequently with deep relationships. The
marketing/sales function maintains strong ties with the customer. The tall firm with
large middle management can focus on the efficient use of resources with detailed
coordination of operations. The focus is the continuity of operations based on detailed
plans. In this case, the information-processing demands have increased
considerably. Some misfits that can happen are the tall firm in the innovation-
focused strategies, where the defender wants to keep things as they are and the
functional configuration fits it well.
For example, a longstanding bank with a hierarchical structure and specialized
departments, symbolizing tall complexity and functional configuration. Operating in
a stable financial market, the defender strategy helps maintain its position through
strong customer relationships and operational stability, aligning with an efficiency
goal.
Thirdly, column C showcases a fit among: a flat complexity, a divisional
configuration, a locally stormy environment, a prospector strategy and an
effectiveness goal. A flat complexity refers to an organizational structure with fewer
hierarchical levels and more horizontal collaboration; the divisional configuration
implies the organization is divided into autonomous units based on functions,
products, or regions. The flat structure and divisional configuration facilitate quick
decision-making and adaptability to the locally stormy environment. In a locally
stormy environment, which is unpredictable and characterized by frequent changes,
the prospector strategy is well-suited. This strategy focuses on innovation,
exploration, and seizing new opportunities rather than maintaining a stable position.
The effectiveness goal emphasizes achieving optimal results in the pursuit of these
dynamic opportunities. Some misfits that can happen are the flat firm with the intense
information and high subunit coordination needed by a defender or analyzer.
For example, in the jet engine market, General Electric (GE) employs a flat
structure and divisional configuration, adapting well to the locally stormy
environment. Operating with a prospector strategy, GE aims for innovation and
effectiveness, making an effectiveness goal for responding swiftly to dynamic market
shifts and technological advancements. This organizational approach allows GE to
lead in innovation and market share within the competitive jet engine industry.
Finally, column D showcases a fit among: a symmetric shape, a matrix
configuration, a turbulent environment, an analyzer strategy and the dual goals of
efficiency and effectiveness. The information-processing demands are very large,
and detailed coordination of new situations is required. A symmetric shape signifies a
balanced and interconnected organizational structure, while a matrix configuration
involves cross-functional teams and shared responsibilities. The symmetric shape and
matrix configuration enhance adaptability and collaboration in response to the
turbulent environment. Cross-functional teams in a matrix structure promote
information sharing and flexibility, aligning with the analyzer strategy's need for a
nuanced approach to change. So, in a turbulent environment characterized by
constant change and uncertainty, the analyzer strategy is well-suited. The dual goals
of efficiency and effectiveness are crucial, aiming to achieve optimal results in both
operations and strategic outcomes.
For example, a technology firm facing a turbulent market. Adopting a
symmetric shape and a matrix configuration, it aligns with an analyzer strategy. This
approach allows the organization to balance efficiency and effectiveness, responding
adeptly to constant industry changes. Cross-functional teams foster collaboration,
making it well-suited for navigating the turbulent tech landscape while striving for
optimal operational and strategic outcomes.