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Departmentalization, Organizational Authority And Job Design: Dakkota Integrated Systems

834 words - 4 pages

Organizational structure, along with the different elements it encompasses, is a significant factor in the overall design of any business. Establishing a clear picture of what a department’s responsibilities are, classifying job roles and functions, and defining where people fit into the chain of command, can make everyday tasks and decisions easier for both employees and managers alike. In addition, astute planning and organization can also have a large impact on a company’s bottom line, with an effectively organized company saving money by reducing redundancies and improving processes and work flow. By outlining and analyzing the general organizational structure that is present at the Dakkota Integrated Systems Windsor Plant, one can identify both its strengths and weaknesses.
Departmentalization is a method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks. Dakkota Integrated Systems is structured using functional departmentalization. There are seven main departments with six distinct organizational groups. The Engineering, Quality, Materials, Operations, HR and Accounting departments stand on their own, while the IT group is nested within the Accounting department and reports to its manager. This current structuring has worked well for Dakkota in the last seven years of operations, due to a couple of main benefits. Each department has been able to focus and develop its employee’s skillset to a high level of competency. This allows a wide range of projects and complex problems to be handled by a relatively small number of employees within the department. Furthering that advantage, is that the skill level of each individual employee within a department is relatively similar, further eliminating the need for more job or task specific positions. This equates to keeping wage related costs lower, with fewer employees needed for day to day operations. While this structuring is mostly beneficial, there are some drawbacks as well. Cross functionality and communication between departments is often a challenge. Department heads and managers knowledge can be quite narrow in regards to other department’s roles and workflows, and how they fit into the company as whole. As well, at times their motivations are more focused on furthering their department’s agenda without considering possible detrimental effects to other departments or the company overall. Another issue in particular, is communication in the Accounting/IT department. With the Accounting manager possessing the final say for IT related tasks and expenditures, lack of knowledge of the IT industry...

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