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Worker communications and consultation within company

The starting point for any organizational design is a realistic company structure that is based on a well-thought-out strategy. If the management team develops a clearly understood strategy and a company structure to accommodate it, the management system has a better chance of being effective. Crossan and colleagues (2005) provided an in-depth discussion of structure and its role in helping meet an organization’s strategy. Mintzberg (2003) also stressed the criticality of having a sound strategy before developing a workable management system. Mintzberg examined a number of different options for organizational structures based on varying strategies, confirming the need to consider structure as being just as important as strategy, both forming the core of a company’s ability to function.Effective Management System Design

A vital characteristic requisite for success is an efficient management system. A company must plan, discuss, and assign roles to provide fluid leadership, embodied in the management system, during the course of doing business. The operation and use of the management system also have to be documented and broadcast throughout the company so that all employees know what part they have in its implementation (Crossan et al. 2005). Typical management systems that accommodate these characteristics involve computerized, networked systems with central databases. These types of systems allow each member of the company to access and use information from various sources that may be required to help develop plans, control hierarchies, and execute strategies.Context and CultureInternal and External Relationships

A networked management system promotes better understanding among the internal and external relationships that naturally evolve in the conduct of any business enterprise. Tuomi (1999) clearly stated that a system designer has to understand all the complex relationships among the people and the information to create a system that can be successful at any level of organization. Some of the most powerful factors in determining or defining a company’s culture are those internal and external influences that emanate from customers and organizations with whom a company must interact.

Internally, a company can be damaged by adopting “vertical, separate management systems” (Griffith 2000, p. 236), commonly called stovepipes. Stovepipes inhibit the sharing of information that is needed to promote better understanding of individual departmental functions. If the management system can provide the combined use of company information and foster an integrated approach to dealing with outside customers, suppliers, and competitors, business usually increases. Griffith recommended a cross-functional management system with a strong, “forward-looking approach that can bring together individual functions within an integrated management system” (p. 232).Competitive Landscape