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Companies have to be both innovative and stable. However, for a company which operates in multiple locations hierarchy and bureaucracy are most likely emerge. In which case, cooperation and coordination between teams and departments become inefficient as rules and regulations become complez. As a whole, the organization slows down.
A team to tackle daily routines
When an organization is complicated, simple tasks such as order processing and consumer response are slowed. Essential tasks such as procurement and sales are restricted due to increased paperwork amd control. Organizations need teams that can perform independent of change. When the company policies and resources are deployed, regardless of change, a team unit must have the autonomy to operate independently.
Cell units can operate without direction
A ‘cell unit’ is a team of key operation personnel who decide, execute, provide feedback, innovate on its own terms and boundaries. A cell unit is consisted if members across departments and teams. The members if a cell unit will differ according to the business. A cell unit within a retail company will be consisted by ‘merchandiser, marketer, inventory controller, display strategist’. For a chenical company, it will be consisted by ‘R&D, marketer, engineer, procurer’.
‘Independence’ is the keyword
The purpose of a cell unit is to ensure that the daily tasks of the largebusiness can operate regardless of upper management and cross departments conflict and resource allocation policy change. Disconnecting employees from the direct conflict and ensuring that their roles can be executed without interference is the intended result.
Independece not negligence
Authorizing independence should not imply negligence. The cell unit must report to its immediate superior. Supervisors should also constantly review whether the unit is operating efficiently.
Change has to be adaptable
Change is inevitable. But when tasks are spread across departments, the ability of a firm to focus is dispersed. Offic politics and interdepartment transaction costs increase. The ‘cell unit’ is a organization design so key activities are executed effectively.
Recently updated on April 25, 2017