Organizational Theory and Design

1548 words 7 pages
Organizational Theory and Design

Organizational Theory and Design According to Grand Canyon University (2013), organizational theory is an attempt to explain the workings of an organization, and the design is the structure, process, and plan which describe all the actions of an organization and how well they fit to meet the organizational goals. This paper seeks to identify the structural dimensions of Ternary Software Co. along with the application of certain strategic frameworks used for organizational effectiveness.
Structural Dimensions
The general characteristics of organizations consist of two main dimensions, structural and contextual. Structural dimensions describe the internal characteristics of an organization by
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Low Cost-Leadership The evidence in the text revealed that Ternary ranked just below mid-range on specialization and mid-range on professionalism. When comparing these structures, Ternary needs to be competitive yet stable since it is not a large enough company to withstand turbulence in the market. Ternary seemingly has the ability to produce and deliver unique services at a lower cost than other competitors because of their unique makeup. Overhead is small, employing only 25 employees. If management keeps salaries and rent low, and more structure and systems are incorporated into the organization, they have a fighting chance of staying viable. Ternary ranked the highest in specialization and professionalism, equating to dividing the work appropriately with qualified individuals. According to Fayol (1949), the division of work is the most efficient way of accomplishing tasks. In order for Ternary to be successful, they must have a managerial plan in place to divide the work, and operate on an efficient scale, meaning the work must be dividing, authority and responsibility must be recognized and adhered to, and managers must have direction and command of employees while supervising the work being accomplished (Porter, 1980). Focus Strategy Porter (1980) found that organizations should target or concentrate on distinct areas of the market. Ternary’s


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