Choosing the Best Organizational Structure for Outsourcing Companies

Choosing the Best Organizational Structure for Outsourcing Companies

Posted on 27. Jul, 2010 by in Business, Management, Outsourcing, Virtual Assistant

Since time immemorial, humans have formed organizations in order to survive in this world. While banding together was initially a way of just merely surviving the elements thousands of years ago, the act of grouping together has become a lot more than that. With the rise of technologies that make life a lot easier for all of us, the human race has developed along with it a growing list of demands. As a result, organizations are now formed to address these demands, no matter how small or big they may be.

This frame of thought is also applicable to outsourcing companies as well. Remember that most of us do not have the time to do everything ourselves, and some of us may opt to seek help, even it is a thousand miles away from our own shores. To meet this demand for quality work in the shortest amount of time possible, outsourcing companies are formed. But now the question comes: What kind of organizational structure is most effective for outsourcing companies?

To answer this question properly, we have to look at the three basic organizational systems: The rational, natural, and open systems.

The rational system –is typical of multinational companies and perhaps the most cutthroat of the organizational systems, since transactions within the organization are highly impersonal and the sanctions quite unforgiving. Within the context of outsourcing companies, it is effective to some extent, as this fosters a sense of responsibility and discipline within the organization. This means stricter deadlines, a more emphasized standard of work quality, and a more systematized operation of tasks. While this may be an ideal structure to use for outsourcing companies, factors such as job satisfaction start to kick in, and using the rational system becomes an obstacle to those tasked with creative content.

The natural system –is more laissez-faire than the rational one, and this takes a more egalitarian approach to its operations. Sometimes organizations have no clear hierarchy of authority, but the tasks are still divided and distributed among people who specialize in other fields. For outsourcing companies, this means that more workers are satisfied with their jobs, and the output more creative than the last. While being highly rational in outsourcing may be ideal for some, the natural system may be more viable for those who want to work on a more personal basis.

The open system –is the most flexible of these systems, as it can be either rational or natural in its approach. Basically it depends on constant feedback from a client or customer to further improve the standard of operations. Perhaps this is the best organizational structure to utilize when outsourcing, since most of the operations in this kind of industry are project-based. This means that each task has different demands in itself, and the quality of work and output rate can differ wildly from each other, and entails a lot more flexibility from workers.

To be brief, choosing the best organizational structure for outsourcing companies really depends on the type of tasks set for them. The rational system emphasizes efficiency, the natural system values job satisfaction, and the open system puts a premium on flexibility.

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