This report discusses about the organisational structure and its importance in the operations of an organisation. The Telstra company by recognising the need in the business environment has made a change in its organisational structure. They have planned and have decided to adopt the futarchy organisational structure in their company which has the ability to implement the changes in much speed.
- What is the organisational structure?
- What is the importance of organisational structure?
- The application of organisational structure in the Telstra company.
Organisation structure refers to the structure or the layout in which the organisation set the direction for activities. They provide or mark the path in which the organisation work and all the actions would take place. Every organisation has some structure which consists of various policies and rules about its working. The structure along with the specification of roles, rules and responsibilities also educate about communication structure which is being flowed by the organisation. For example, whether the organisation has opted for the centralised communication where the flow of communication takes places from upward to downward or the decentralised communication structure where the power for decision making is also in the hands of employees. Organisation opts for that structure which fits best for its operational working and which able to meet the motivational expectations of the employees. With the changing business practices, the type of organisation structure is also making a development. For example in the early time, the organisation major focus was solely on productivity, they consider employees as secondary and a means of making money. All the policies and the rules were made with the context of how the organisation can increase in their profits and productivity. Here the overexploitation of employees takes place. But with the time the concept also had taken a turn. Now the organisation's release that their major profits and productivity can only be attained through employees and the structure is formed in such a way that it focuses upon employees welfare. All the rules, responsibilities, policies, the structure were formed with regard to the concept of employee orientation.
Telstra is a multinational company which is originated from Australia. The company is engaged in the business of providing and establishing the telecommunication services and networks. Telstra is considered as a largest company in the Australia in this type of industry. The company was established in the year 1975 and currently serves worldwide. With the time this company has also make the changes in its organisational structure. Recently the CEO of Telstra, Andrew Penn, has announces the major changes its structure. They have now has planned to adopt the Flatarchy structure. The Flatarchy structure is something which is new in the business world. The structure is majorly adopt by new start ups. The structure flattens all the hierarchy along with the concept of chain of command. Through this structure a lot of freedom and autonomy is provided to the company's employees. Telstra has provided much of its decision making power to its employees. The company gives its target with mission to employees or departmental heads whose business is to provide the company with results. Through this type of structure the employee creativity gets to an increase with a great level because here the managers do not provide any strict guidance about the working to the employees. Here the employees takes their own decisions and gives the performance to their organisation. Andrew Penn also believes that the company will have the speedy implementation of policies and any change in the system.
The new Telstra organisation structure is presented below:
This is the latest structure which the company has adopted. Here there are around 4 departments or heads which will directly coordinate with the company's CEO. For example the head for the product and technology group will be handled by the group executive of the company. Consumer and small business head will be taken care by Vicki Brandy. Similarly Enterprise group executive will be head by Michael Ebeid. And there are various more sector and groups of the company like Global Businesses services, Networks and IT, Chief Financial Office and head of strategy, legal and corporate group and etc. are all handled by different people of the company. Andrew believes that in this changing world the change is something which is very frequent and also of paramount importance for the organisations to follow. So to cope up with these frequent change the company has to adopt that structure in which these change can get implement in the working in minimum of time. Flatarchy organisation structure provide this merit to the Telstra. They can bring any change with respect to rules, technology, policies, responsibilities and much more. With the help of this system or structure, the organisation would be able to perform the communication system with a much speed, they can bring or establish the change in organisation, they minimize the working load or the time process which takes in performing the communication process. The CEO has promised that through this structure the company can bring more effectiveness and efficiency in their working. The employees motivational and satisfaction level will be unbeatable. The whole structure focuses upon the concept of employee motivation and orientation. It has included all sort of benefits which would be needed by the organisation in this recent times. The company has noticed a positive change in their working or operational activities. They have observed that there productivity level has increased, the employees retention has also increased, the implementation of change takes place with a speed, employees have become more challenging and dynamic with their work, positive and energetic environment in the company and the much more.
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The organisation structure of the company has also become so effective that the management work is performing as per the standards. Proper management system has enabled in more clarity in working, transparent communication system, less misunderstanding or conflict and more discipline in the activities. The management is so effective which helps in achieving the business its goals and standards which they have set for itself. Therefore, it is very mandatory to develop or modified the organisational structure which can suit best for the company and its working. The structure works complementary with the success of company and to analyse the type of organisational structure which fits best is a must.
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