Management structure can lead to misleading organizations. Mangers are often designing and redesigning management structure, assigning different responsibilities and resources to divisions and departments. Divisions about the management structure post a number of dilemmas which must be solved if the organizations are to be managed effectively. These dilemmas include (Carnall, 2003, pp. 5769):
A. Centralization versus decentralization: Organizations decentralized to encourage local initiative in which might be varied local markets and circumstances, but they centralized when they want to gain control over the expenditures or employment policies. This leads to having the problem that is laid with growing from small entrepreneurial business into large and diversified conglomerate.
B. Global versus local: This is not far different from centralization and decentralization. When the organizations grow into large scale, they begin operating internationally; establishing manufacturing, market, or distribution, and then the organizations face the problem of how to motivate the managers to operate successfully within a given local market with a particular demands and characteristics against the demand for global development and coherence.
C. Efficiency versus effectiveness: The efficiency is defined as achieving stated goals within given resources constraints, whereas the effectiveness is included efficiency and adaptability to future circumstances by balancing the efficiency of deploying new products and services. The efficient organizations focus on internal efficiency and control, yet the effective organizations concentrate on external criteria. To overcome this, it is required to understand the necessity for changes and adaptabilities.
D. Professionals versus line management: The professionals bring the technical input and ideas applied in other situations, but the line managers have the knowledge of specific local circumstances (street-wise approach). To achieve this, the organization is required to know how to manage the professionals by using these principles: employ decentralization, depend less on rational control, emphasize on team working, emphasize on team management, use matrix management and project structure, emphasize on trust, or emphasize on values and ethics.
E. Control versus commitment: The traditional management of organizations is concerned with control model that its standard defines the minimum acceptable performance. This management has fails to motivate the employees or to develop their latent capacities. To accomplish this, the organizations are required to have a strong commitment with this problem.
G. Change versus stability: In a changing world, the organizations must change to survive and prosper. When changes occur in the organizations, they have to balance with stability, or there will emerge the problems.
Sam Aun (Andy)
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