Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

QUEZON CITY BRANCH

Written Report PERFORMANCE MANAGEMENT HRMA 30073

Tuazon, Ralph Joseph C.

BSBA HRM 3-1

Prof. Noel Fabela

Instructor

2021
Chapter 3 | Trends in Organization Design

Trends in Organization Design

Especially in the times of uncertainties just like the current pandemic, changes in
organization occur to ensure effectivity and efficiency of a certain institution. There are
two widely publicized contingency considerations emerging from today’s business
environment that further complicate the problem of organization design.
a. Informational processing imperatives
b. Global Imperatives

Informational Processing
The modern business organization is an information-processing system. In order
to plan and implement strategy, organizational members must have access to pertinent
information, and they must be able to process and analyze it properly.

As the environment becomes less stable and uncertain, the demand for
appropriate information processing increases. Information is collected and/ or
disseminated through organizational communication networks with wheel and all-
channel network as best for complex task.

A. Wheel Network
[2]
In a wheel network, information flows to and from a single person. Employees
in the group communicate primarily with that person rather than with each other. Such a
communication network is a fast means of getting information to employees since the
person at the hub of the wheel can do so directly and efficiently. The wheel network
relies on the leader to act as the central conduit (channel) for the entire group's
communication.
 B. All-channel Network
In an all-channel network, communications flow upward, downward, and laterally
among all members of the group. This pattern of communication supports an
egalitarian, (equal, unrestricted) participative culture and fosters (promote, cultivate)
cross-functional efforts.
The all-channel network is best if you are concerned with having high member
satisfaction. The all-channel network is the most decentralized of the networks; each
member can communicate with any other member.

Communication network diagram shows that wheel network with a mechanistic

structure that features a vertical hierarchy of authority as its basis for information
processing and problem solving. The all-purpose network is equated with an organic
structure, through its emphasis on lateral as well as vertical communication and
information.

External Factors/ Global Imperatives

Thus, the uncertainties of the external environment have an impact on the
information-processing needs of the organization and, in the process, influences its
design. Examples of this are the new department established to the ever-changing
customer behavior like social media department typically each social media platform are
handled by different people.
In terms of global imperatives, we have the pandemic, the growing market due to
globalization, the need to cater international customers and the ethical way to target
them.
Sources:
1) Fundamentals of Performance Management, Prof Micheal Dela Cruz
/206/PHC00193/9780133856743_ROBBINS/ROBBINS_FUNDAMENTALS_OF_MA
NAGEMENT8_SE_978013
2) Wisdom Jobs. (1970, January 1). COMMUNICATION NETWORKS.
https://www.wisdomjobs.com/e-university/principles-of-management-and-
organisational-behaviour-tutorial-366/communication-networks-12761.html#:
%7E:text=In%20a%20wheel%20network%2C%20information,do%20so
%20directly%20and%20efficiently.
3) Wheel Network image: https://images.app.goo.gl/yzE4n7UU3KYP6h5a8
4) All-channel image: https://images.app.goo.gl/LVh9Ns2x9euKJf3X8