In The structure they formulated is fully applicable

In Eastern Farms top management
i.e. President and CEO is responsible for the creation of organization
structure. They think that structure is important for the smooth operations of
business. The structure they formulated is fully applicable in the
organization. In EF Tasks are subdivided into separate jobs and each individual
is doing a part of an activity rather than entire activity.

For the performance of
these various tasks they require a combination of:

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Highly
skilled workers
Semiskilled workers
Untrained work force

They
claim that work specialization increase the efficiency and productivity of
workers. In EF jobs are grouped together on the basis of:

Knowledge & Experience:

After the completion of jobs individuals and groups
reports to their departmental head. Span of control in EF is moderate. A manger
can control medium number of people efficiently and effectively. Decision-making
in EF is decentralized as power has been delegated to different authorities to
make decisions for routine matter and they can consult the top management in
any emergency and if the matter is beyond their discretion. Formalized rules
exist in EF that directs employees and managers. Management and subordinates
work with team spirit to perform their duties and develop the structure. In EF
organization structure is simple because there is no complexity in hierarchical
positions, formalized rules and regulations, and low degree of
departmentalization. The strength of this simple structure lies in its
simplicity. It is fast, flexible, inexpensive to maintain, and accountability
is very clear. From the prevailing new design options EF is following one of
them and i.e. ‘team structure’. It means that organization is using teams as
the central device to coordinate work activities and this team structure breaks
down departmental barriers and decentralizes decision making to the level of
work team.

Among
the following four factors:

Ø  Strategy

Ø  Size

Ø  Technology

Ø  Environment

That affect the organization
structure, they claim that technology and environmental forces affect EF
structure whereas change in strategy rarely affects the structure. There is
stronger relationship between technology and structure of EF because without
the telecommunication sources like fax, e-mail, phone, and the operations of
branch become difficult.

From
the following environmental forces:

Ø  Suppliers

Ø  Customers

Ø  Competitors

Ø  Government
regulatory agencies

Ø  Public
pressure group

Ø  Introduction
of new technology

The customers potentially affect
the organization structure. The simple structure and formalized rules of EF
makes it convenient for the workers to complete the job tasks, which have
positive impact on employee’s performance. Formal Information channel exist in EF,
as information flow is either upward or downward. By using latest technology
with skill the organization structure of EF is able to meet the global
requirement with indirect supervision and positive interpersonal climate.

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