In Eastern Farms top managementi.e. President and CEO is responsible for the creation of organizationstructure. They think that structure is important for the smooth operations ofbusiness. The structure they formulated is fully applicable in theorganization.
In EF Tasks are subdivided into separate jobs and each individualis doing a part of an activity rather than entire activity.For the performance ofthese various tasks they require a combination of: Highly skilled workers Semiskilled workers Untrained work forceTheyclaim that work specialization increase the efficiency and productivity ofworkers. In EF jobs are grouped together on the basis of:Knowledge & Experience:After the completion of jobs individuals and groupsreports to their departmental head. Span of control in EF is moderate. A mangercan control medium number of people efficiently and effectively. Decision-makingin EF is decentralized as power has been delegated to different authorities tomake decisions for routine matter and they can consult the top management inany emergency and if the matter is beyond their discretion. Formalized rulesexist in EF that directs employees and managers. Management and subordinateswork with team spirit to perform their duties and develop the structure.
In EForganization structure is simple because there is no complexity in hierarchicalpositions, formalized rules and regulations, and low degree ofdepartmentalization. The strength of this simple structure lies in itssimplicity. It is fast, flexible, inexpensive to maintain, and accountabilityis very clear. From the prevailing new design options EF is following one ofthem and i.e. ‘team structure’.
It means that organization is using teams asthe central device to coordinate work activities and this team structure breaksdown departmental barriers and decentralizes decision making to the level ofwork team. Amongthe following four factors:Ø StrategyØ SizeØ TechnologyØ EnvironmentThat affect the organizationstructure, they claim that technology and environmental forces affect EFstructure whereas change in strategy rarely affects the structure. There isstronger relationship between technology and structure of EF because withoutthe telecommunication sources like fax, e-mail, phone, and the operations ofbranch become difficult. Fromthe following environmental forces: Ø SuppliersØ CustomersØ CompetitorsØ Governmentregulatory agenciesØ Publicpressure groupØ Introductionof new technologyThe customers potentially affectthe organization structure. The simple structure and formalized rules of EFmakes it convenient for the workers to complete the job tasks, which havepositive impact on employee’s performance.
Formal Information channel exist in EF,as information flow is either upward or downward. By using latest technologywith skill the organization structure of EF is able to meet the globalrequirement with indirect supervision and positive interpersonal climate.