FREE ESSAY ON ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL STRUCTURE

Organizational Structure
In 1997 McKesson Corporation sold PCS INC. to Eli Lilly Company. It was a time when all
employees were unsure of what was in store. Were there going to be layoffs, major changes
or status quo? As it turned out, there were few changes that impacted the day to day life
of the employees. In 1998 PCS was once again sold to Rite Aid Corporation. We are about
to embark on this activity again as Advance Paradigm has purchased us from Rite Aid
Corporation. Once the sale is complete, we will become Advanced PCS. PCS employees are
familiar with organizational change.
What type of organizational structure will work? I have been asked this many times during
my tenure at PCS. I will explain whether benefits or difficulties will arise from each
type. I believe there are various types in use throughout PCS today. The focus of my
paper will be in my department, Materials Management, Corporate Mail Services.
An organizational network is a system of interconnected or cooperating individuals
according to Gary Dessler in Management, Leading People and Organizations in the 21st
Century. PCS utilizes both formal and informal networks throughout the organization. In
my department an informal network exists between the small groups. There are three
managers, one assistant vice president, a vice president and several analysts and buyers.
Analysts and buyers interact when keeping the data of the system in sync. We don't have
any formal relationship to each other but are dependent on the expertise of each. Within
the data group, there is a formal network made up of a manager and two analysts.
Purchasing has a manager and several buyers. These two groups are very formal and
structured. Problems are reported to the manager and passed up the line if necessary.
Throughout PCS there is an electronic network. The company is spread out over four local
campuses and nine regional offices. E-mail is the communication method of choice. The
sales group is electronic and meets formally each quarter with the sales managers and
directors. Even within my department, for documentation, e-mail is the communication
method.
Prior to working in Materials Management, the group I work with would be defined as team
based and boundaryless. The person in charge wanted to build a self managed team that
would function without boundaries. Our team, RECAP III, was made up of employees from
each department in the company. Gary Dessler defines boundaryless as having fewer
boundaries than traditional structural mechanisms.
Standard operating procedures and process flows began to be created both for the core
business and RECAP III as well. What PCS needed to do was to "build the organization
around the new software and the software around the customer" (Executive Edge, 1996, p.
2). These changes were to be made to meet the needs of the customer, based on what they
told us what they wanted.
I have tried to bring this strategy to Materials Management. I began creating Standard
Operating Procedures. For this department having been together only one year, there was
little to no documentation. I have looked for ways to make the workflow easier and
communication easier.
"You must lay a proper groundwork, involving those who will be affected by the change and
obtain commitment from the relevant stakeholders" (Pfeiffer & Company, 1993, p. 5).
Also involved in Materials Management are employees in two mail order facilities who have
been independent. The corporate group was taking back control of all data. People were
being locked out of the system. Inquiry was the rule of the day. Standardization began
and everyone as beginning to see this was for the best.
PCS uses many different types of organizational structures yet we are lead by the
traditional. The CEO passes the company plans, goals and strategy to all employees. The
company also respects the voice of the employee. Every three years all employees complete
an independent survey and then the results are passed back to us. 
I believe every company at one time or another uses all types of organizational
structures. In many occupations I've had during my working life, I have been involved in
each of them. My hope is to someday take the knowledge I've gained and use it wisely in
an organization of my own.
?References
Dessler,Gary. (1998). Management: leading people and organizations in the 21st century. 
New Jersey: Prentice Hall.
Harai, O., & Imarato, N. (1996). An Interview with Orin Harari and Nicholas
Imparato, Authors of "Jumping the Curve" Creating a Great Organization [Online]. 
Available: http://ww.smartbiz.com.html
Nolan, T., Goodstein, L. & Pfeiffer, J. (1993). Changing Organizations and People
[Online]. 
Available: http://ww.smartbiz.com.html