What is the correct Organisation Structure?

A Cyberspace friend posts the above question for more perspectives. His described context is arranged in Object format as follow, for sharing with Internet Community and seek your unique perspectives also.

>What is the correct Organisation Structure? - 1st perspective

Goals

• What is the correct organisation structure?
• What is the purpose of an organisation structure?

Fact

• Organisation Structure
• Business Process Vs Business Compartments
• Compartmentalisation Thinking Vs System Thinking
• "Continuous Learning and Improvement."
• "Borderless Society"

Symptoms

• An Engineering consultant firm has more than 200 employee
• The Management committee (EXCO) meets monthly headed by MD (Managing Director). 5 Main Divisions namely 1) Human Resources and Administration 2) Engineering 3) Quality 4) Business and Corporate 5) Finance, each headed by EXCO member. There are subdivisions under each main Division.
• One views that Human Resources and Administration is too large and could perhaps be broken into two Divisions each managed by an EXCO member
• Each Division is subdivided into Subdivisions, which are headed either by a Director or an EXCO member who also head another main Division. An EXCO member supervising another EXCO member in subdivision can be a problem.
• Another views that an overlap of the duties of the Engineering Director and the Director in charge of the Human Resouces and Administration as both have some responsibility of the resources.
• Quality should be the responsibilty of the Engineering Director as he is responsible for providing quality service.

Change

• Expanding business / complexity gives rise to Organisation Re-structuring exercise

Causes

Compartmentalization Thinking causes above ideas for re-structurng of an organisation.

Fixes

• There is little awareness that the above organisation re-structuring ideas are a result of Compartmentalization thinking. This will create more problems to organisation and liability to the business in the long run. The world is moving away from "isolation" "fragmentation" "compartmentalizatin" into "Borderless Society" focusing on System & Process Thinking, Integration, Alignment, Cohesiveness and Teamwork.
• Within the framework of Compartmentalization Thinking, any of the above opinion on re-structuring makes logical sense, so are many other different opinions. This will lead no way except argument, debate, politicking etc.
• Focus on "designing key Business Process" (which cut across compartments) that can effectively realise the mission of the organisation. Organisation Structure is then to serve the designed Business process, with its knowledge workers in a cohesive, teamwork manner on the principle of "Continuous Learning and Improvement."

>What is the correct Organisation Structure? - 2nd perspective

Goals

• Who should have power over who?
• What is the correct organisation structure?

Fact

• Organisation Structure
• Business Process Vs Business Compartments
• Teamwork Vs Individualism.

Symptoms

• An Engineering consultant firm has more than 200 employee
• The Management committee (EXCO) meets monthly headed by MD (Managing Director). 5 Main Divisions namely 1) Human Resources and Administration 2) Engineering 3) Quality 4) Business and Corporate 5) Finance, each headed by EXCO member. There are subdivisions under each main Division.
• Human Resources Director is the MD, having more say than the Engineering Director. Engineering Director unlikely be effective in his functions over resources in the Engineering Divisions
• Each Division is subdivided into Subdivisions, which are headed either by a Director or an EXCO member who also head another main Division. An EXCO member supervising another EXCO member in subdivision can be a problem.

Change

• Expanding business / complexity gives rise to Organisation Re-structuring exercise

Causes

Excessive focus on individualism. Possibly caused by existing hierarchical and compartmentalised organisation structure.

Fixes

• There is no emphasis on Teamwork : designing appropriate structures / mechanism to promote Teamwork.
• The purpose of organisation authority vested to some personnel is only to help to facililate busienss decision making process towards organisation goals. Before such authority is needed for final decision making, all members of the organisation are team-members ; collaborating, communicating and co-ordinating together. There is no need to differentiate rank and file.

End.