Organizational Mode Effectiveness

Organizational Model Effectiveness

Michelle Pressley

CMGT/530

February 22, 2012

An organization is crafted of multiple departments. In order for an organization to run efficiently, it is imperative that each department of the organization is in good working order. Each department of the organization must work collectively with other departments in order for the organization to reach optimal performance. When an organization is recognized for excellence this is due to each part of the organization being aligned so that the organization as a whole is more efficient than the total number of departments. This paper will discuss the organizational model effectiveness of two virtual organizations: Riordan Manufacturing Inc. and Kudler Fine Foods.

Riordan was founded by a chemistry professor, Dr. Riordan, who had acquired numerous patents in relation to processing polymers into high strength plastic substrates. This was the beginning of Riordan Plastics, Inc. in 1991. Riordan Manufacturing Inc. is plastics manufacturer who specializes in plastic injection molding. The company is a fortune 500 company which is totally owned by Riordan Industries. The company is located in San Jose, California. Riordan Manufacturing has cutting edge research and development and the company’s Six Sigma and ISO 9000 certifications make this company a high quality focused organization. When the company started, its main focus was on research and development and licensing of its flourishing patents, in 1992 the name of the company was changed to Riordan Manufacturing, Inc., which was due to a venture capital, which was obtained by Dr. Riordan. The company widened its production into the manufacturing of plastic beverage containers.

The company uses a tall hierarchy or bureaucratic chart as their organizational model. This is said to be the organizational structure of Riordan Manufacturing due to the fact that the company has a CEO at the top level of the organization and numerous levels of management afterward. Riordan Manufacturing tends to be a complex organization and utilizes a long chain of command similar to that of the military. As the organization grew from the beginning stage to the current stage, the number of management levels also grew which resulted in the tall hierarchy structure of the company. Riordan’s management structure outlines many different ranks and each rank controls a minim area within the company. The organizational structure used by Riordan Manufacturing appears to be the most beneficial for the company because of the size of the company and also because there is a much more personal supervisory control over the employee. Also this structure is more authoritative, which results in clearer responsibilities and roles.