INDIGO BOOK AND MUSIC

Q1 When two organizations merge what type of structure issues do

you think might need to addressed?

When Reisman was made a task to merging two organizations into

one, Indigo and Chapter both had similar organizational structure -a
functional based design.
Indigo’s corporate structure, for instance consisted of departments
such as marketing, human resources, and retail. However, the new
organization suddenly had 90 big- box stores and close to 7,000
employees. Moreover, with the take over, Indigo gained control of the
nation wide.
So when these two types’ organizations merge they can chose there
customers and product mix and the assets which they have combined,
the resources and the common functions which they have. They also
set staffing numbers and decide salary levels. All customers, private
and corporate, no matter what size, are the responsibility of a local
branch. That means that even a large global customer such as Volvo is
managed by a branch office. However, a branch office “buy in”
specialist services it may need in servicing important customers like
Volvo. Each branch manger is also responsible for branch performance,
which is measured by ratio of costs divided by revenues, and all the
banks branches are benchmarked against each other. if a branch starts
underperforming the regional office will offer advice and examples of
what other branches have done. And to stop predatory competition
between its own branches, the company has set strict geographical
boundaries.

Q2 what role do you think organizational structure plays in an

organization’s efficiency and effectiveness?

Organizational structure is the formal arrangements of jobs within an

organization. When mangers develop or change the structure they’re
engaged in organizational design. The challenge for managers is to
design an organizational structure that allows employees to effectively
and efficiently do their work.
When mangers develop and change the structure they were engaged
in organizational design.
For instance, at the Siemens AG factory in Germany where employees
make X-rays equipment, efficient manufacturing techniques were
implemented by doing things such as cutting inventory levels,
decreasing level, decreasing the amount to manufacture products, and
lowering product reject rates. These efficient work practices paid off as
the plant was named one of industry week’s best plants for the year.
So, to organize an organization in a formal, specific structure is
actually “doing things right” that is no wasting resources.
When we talk about effectiveness of an organization like Siemens
factory, to keep this organization in structure requires attaining the
goals included reducing equipment installation time for customers and
cutting costs through various work programs, these goals were
pursued and achieved.

Q3 would a more mechanistic or a more organic structure true be

appropriate for indigo? Why?

First we discuss what actually a mechanistic and organic organization

is and what will be the most suitable for indigo type of structure
organization!

A Mechanistic organization is a rigid and tightly controlled

structure. It’s characterized by high specialization, rigid
departmentalization, narrow spans of control, high formalization, a
limited information network (mostly download communication), and
little participation in decision making by lower-level employees. This
organizational structure will not suitable for Indigo type of
organizations as it has flexible and highly adaptive design so its
difficult to maintain this type of organizational design This
organizational design tries to minimize the impact of differing
personalities, judgments, ambiguity because these human traits are
seen as inefficient and inconsistent. Although there’s no totally
mechanistic organization, almost all large corporations and
governmental agencies have some of these mechanistic
characteristics.
So indigo types of firms will not be suitable for these types of
structures as they are flexible in there structure and not have narrow
spans of controls, not very high formalization, they have full
information in every step in their organization so this, the mechanistic
organizational structure will not helpful for indigo.
A Mechanistic organization which is highly adaptive and flexible a
structure as the mechanistic organization is rigid and stable. Rather
than having standardized jobs and regulations, the organic
organization is flexible, which all allows it to change rapidly as need
require.
Organic organization has division of labor, but the jobs people do are
not standardized. Employee are highly trained and empowered to
handle diverse job activities and problems, and these organizations
frequently use employee teams. Employees in organic type of
organizations require minimal formal rules and little direct supervision.
Their high level of skills and trainings and the support provided by
other team members make formalization and tight managerial controls
unnecessary.
As the Mechanistic organization which is highly adaptive and flexible a
structure so it is suitable for indigo as the mechanistic organization is
rigid and stable. So Indigo rather than having standardized jobs and
regulations, the organic organization is flexible, which all allows it to
change rapidly as need require.

Mechanistic versus organic organization

Suitable for Indigo

Mechanistic Organic

High specialization Cross functional

Rigid departmentalization
Clear chain of command
Narrow spans of control
Centralization
High formalization
Cross-Hierarchal Teams
Free flow of information
Wide Spans of Control
Decentralization
Low formalization

Q4 How might technology affect Indigo’s organization design?

Every organization has at least one form of technology to convert its

inputs into outputs. The initial in technology is to determine the extent
to which structural design elements were related to the organizational
success. Woodward was unable to find any consistent pattern she
(British scholar) segmented the firm into three categories based on the
size of their production runs. The three categories, representing three
distinct technologies, had increasing level of complexity and
sophistication. Theses categories are:

Unit production, it described as the production of items in units or

small batches

Mass production, it described as the large batch manufacturing.

Process Production, it described as the production of items in

continuous process.

So the Unit production and mess production are useful technologies for
Indigo as they can firstly described the unit into small batches as these
suits to their nature of business, and then it includes the continuous
process of production so these two types of technology are very useful
for indigo as the mass production technology is mechanistic in nature.
Woodward's findings on Technology, structure, and Effectiveness

Structural
characteristics Unit Of Production Mass production Process Production
Low vertical Moderate vertical High vertical
differentiation differentiation differentiation

Low horizontal High horizontal Low horizontal

differentiation differentiation differentiation

Low formalization High formalization Low formalization

More effective
structure Organic Mechanistic Organic

These studies generally demonstrate that organizations adapt their

structure to their technologies. The process or method that transforms
the organization’s inputs into outputs differs by their degree of
routineness or standardization. In general, the more routine to
technology, the more mechanistic the structure can be. And the
organizations with more nonroutine technology are more likely to have
organic structure.