NAME OF THE STUDENT:

YOBE THOMPSON

NAME OF THE MODULE: BUSINESS SIMULATION

TASK: SECOND ASSIGNMENT

SUBMISSION DATE: 11/03/2022

Introduction
Many companies are racing to deploy flatter organizational structures
and re-invent their organizations in today's digital transformation era,
but choosing the wrong one might have severe effects. It's not about
picking the most popular or trendy flat organization to implement; it's
about finding the one that works best for your company. Management
control systems play a vital role in a company's strategic alignment and
in building confidence with stakeholders. An effective management
system structure benefits all businesses and organizations, regardless of
size, kind, or industry. They are focused on the needs of customers,
other interested parties, and/or sustainability issues, and they provide
critical support to your firm in successfully meeting market and societal
difficulties. Management systems structures that are genuinely practiced
and continuously developed help most businesses and organizations
avoid mistakes, recognize opportunities and dangers, and meet the needs
of all stakeholders. At the same time, they facilitate adaptation to
continually changing situations.
. They are focused on the needs of customers, other interested parties,
and/or sustainability issues, and they provide critical support to your
firm in successfully meeting market and societal difficulties.
Management systems structures that are genuinely practiced and
continuously developed help most businesses and organizations avoid
mistakes, recognize opportunities and dangers, and meet the needs of all
stakeholders. At the same time, they facilitate adaptation to continually
changing situations. Pilot, M. J. (2014) emphasized that if one wants to
be at the forefront of the competition for the best products and services,
professional management systems and their certification are no longer
optional. Norms and other standards list all of the requirements that must
be formally implemented. The path to implementation, however, is not
predetermined. Each management system structure should be tailored to
an organization's specific objectives and goals. As a result, always keep
your company’s unique context in mind, and tailor the standard
standards and implementation routes to your specific needs. This
includes, for example, close collaboration among all stakeholders and
interested parties. This essay examines how management system
structures enable simulation and operational controls.
To begin with, business simulations are like autopilots in that they
provide a safe and highly realistic environment for developing essential
skills and encouraging entrepreneurship. Business simulations are
founded on the notion of learning by doing. A flight simulator, for
example, allows pilots to practice handling complicated circumstances in
a risk-free setting. Business simulation allows students to obtain hands-
on experience with real-world management system difficulties. To
improve, the focus of a management system structure is on change and
innovation. Corporations and institutions have been following three
phases by focusing on continuous development of each process. Phase
one is to identify the process(es), its risks, the development of objectives
and strategic measurable plans for each process, as well as the process's
requirements and resources. Phase two is to guarantee that support
systems—resources, documentation, training, and communication—are
available for operational control of business processes. Phase three is
when they look at monitoring, measuring, analyzing, and evaluating
each process—audits, nonconformance, remedial action, and
management reviews.
Most managers want to improve corporate operations so that they can
access timely data and information to make informed, timely decisions
in a global competitive economy. CEOs and top management must
comprehend not only the financial bottom-line expectations, but also the
operations that support reaching to the result. Yet, they must be aware of
the processes or systems in place to support corporate performance and
efficiency. Management systems, such as ISO standards, place a
premium on continuous improvement of the overall management
system.
To improve simulation, although having the same basic parts, each
organization develops the structure that leads to the most efficient
operations. As will be discussed later, various elements are likely to
influence an organization's design. Ahmady, G. A., Mehrpour, M., and
Nikooravesh, A. (2016) define organizational management structure
system as a framework for classifying a hierarchy inside an organization
by identifying each job, its function, and where it reports to within the
organization. The purpose of developing an organizational structure is to
establish how an organization runs and to provide more aid in
accomplishing organizational goals and objectives to enable for future
growth and development. Basically, the management structure system is
conveyed through an organizational chart, which is a graphic that depicts
a firm's structure and shows employees where they fit into the
company's activities, as well as the chain of command, which illustrates
the reporting relationships inside a corporation. Such reporting linkages
represent the level of collaboration for integration that exists among
several departments with varying expertise who are working together to
meet the challenges of the environment (Vasconcelos, F. C., & Ramirez,
R. 2011).
According to the provided reading materials, the choice of
organizational structure for the management system structures to enable
simulation and operational controls properly is based on various
variables such as:
1. Difficulty: This dimension relates to the number of titles, layers in the
management hierarchy, and complicated activities in an organization.
Horizontal differentiation refers to the extent to which organizational
tasks are separated into discrete jobs (division of labor), the number of
different sub-units in the organization, and job design.
b. Vertical differentiation, which reflects a hierarchical order via a
control span. The span of control specifies how many employees report
to a single boss. It can be subdivided into a narrow
c. Geographical dispersion, which shows how organizational duties
are distributed geographically and how control is exercised (from a
single power center or from numerous power centers).
2. Formalization is the amount of written documentation in an
organization (policy, manuals, rules, written processes, etc.) as well as
the prevalence of formalization symbols such as dresses, suits, personal
objects at the workplace, and so on. Finally, it reveals how much
interpersonal relationships and information flow are scripted and follow
pre-determined channels.
3. Centralization which refers to how power is allocated within an
organization (the location of decision-making authority). Centralization
can be separated into two types: centralized or autocratic, which implies
that subordinate participation or influence in decision-making is limited,
and decentralized, which means that choices are made at lower levels
within a broad framework.
4. Standardization is the degree to which similar work activities are
carried out or completed in a consistent manner.
In addition to the above explanation mostly from the reading materials,
there is also a different structure that are employed by management in
enabling Simulation & Operational Controls. This is of mechanistic &
organic structures: A mechanistic structure is a system of organizational
management structures meant to ensure that persons and functions
behave predictably and can be held accountable for their activities.
Organic structure, on the other hand, is an organizational structure that is
designed to allow individuals and functions to behave flexibly and adjust
fast to rapidly changing and unique events. The tall, centralized
hierarchy of authority, top-down communication and decision making,
many comprehensive and standard procedures (high usage of
standardization), and lastly duties and roles are thoroughly stated and
clarified towards employees and division of labor characterize
mechanistic structures. Organic structures, on the other hand, are
distinguished by a flat decentralized hierarchy of authority, down top
communication and decision making among employees in various
departments, a loose division of labor, and extensive use of mutual
individuals' adjustments such as face to face communication.
Furthermore, organizational structures can be tall or flat depending on
the hierarchical levels that exist inside the company. Tall structures
feature multiple layers of management between frontline employees and
top line managers, whereas flat organizational structures have few layers
between frontline employees and top line managers. Because of the
restricted range of control in tall organizational structures, managers
have possibilities to monitor and supervise employees' activities.
Because there is a wide span of control in flat organizational structures,
numerous people are overseen and monitored by a single manager.
Conclusion
Management structure systems are in place to encourage and support
organization’s business practices and success, as well as to foster
innovation and automation. It is critical that document management is
maintained for data analysis while keeping in mind the value for both
the enterprise and the client. Structures of management systems must be
understood not only by the firm, but also by its suppliers, customers, and
all stakeholders. Management structure systems govern how roles,
power, and duties are given, regulated, and coordinated, as well as how
information flows among management levels. In brief, a management
structure outlines how a company's management hierarchy is organized.
A hierarchy exists in practically all organizations. This hierarchy
establishes the organization's lines of authority, communications, rights,
and tasks. The structure of an organization varies depending on the
Board, Middle, and Lower management. Many companies are racing to
deploy flatter organizational structures and re-invent their organizations
in today's digital transformation era, but choosing the wrong one might
have severe effects. It's not about picking the most popular or trendy flat
organization to implement; it's about finding the one that works best for
your company. In conclusion, A well-planned organizational structure is
a logical precondition for success in the twenty-first-century commercial
environment. But a well-designed management system that may serve as
a firm foundation for running the organization and maintaining
advancements is insufficient. A management system must handle all
contextual and cultural aspects that may affect a company's functioning
to be created efficiently. Company organizational traits, internal and
external interactions, competition, strategic problems, and business
performance are examples of these elements. Management system
designers must also consider the needs of all stakeholders. Customers,
employees, investors, suppliers, senior management, and even members
of the community are all examples of stakeholders. To meet the
requirements of all of these groups while maintaining operational
efficiency, the management system must be developed to encourage
synergy between cultural and stakeholder influences.

References
Ahmady, G. A., Mehrpour, M., & Nikooravesh, A. (2016).
Organizational structure. Procedia-Social and Behavioral Sciences, 230,
455-462.
Pilot, M. J. (2014). Driving Sustainability to Business Success: The DS
Factor--Management System Integration and Automation. John Wiley &
Sons.
Shoghi, B., & Safieepoor, A. (2013). The effects of organizational
structure on the entrepreneurial orientation of the employees.
International Journal of Academic Research in Business and Social
Sciences, 3(11), 90.
Vasconcelos, F. C., & Ramirez, R. (2011). Complexity in business
environments. Journal of Business Research, 64(3), 236-241.