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What are the different organizational structures
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The Different Ways Organizations Can Be Structured and Operated
There are four major ways a company - organization can be structured
and operate. P.C.G (o) Ltd I would dare say that is structured and
operates with the functional structure. In order to make it clear and
understandable I am analyzing here below the four ways that
organizations can structure and operate. We will observe that all four
structures have there advantages and disadvantages. In order also to
assist you understand better the differences of the four ways that
organizations can be structured see in Page 4 & 5 Figures 1,2,3 which
are the layout of the organization charts for each structure:
1. Functional
2. Divisional
3. Hybrid
4. Matrix
1. Functional Structure involves the departmentalization in which
positions are grouped according to there main functional- specialized
area. To make it more clear and for example, the Production or
operations function combines activities directly related to
manufacturing a product or delivering a service. Marketing focuses on
the promotion and sale of products and services. Human resources are
responsible for attracting, retaining, and enhancing the effectiveness
of organization members. Finance is concerned with obtaining and
managing financial resources.
The advantages and Disadvantages of this structure are as follows:
Advantages:
In depth Development of expertice
Clear career path within function
Efficient use of resources
Possible economies of scale
Ease of coordination within function
Potential technical advantage over competitors
Disadvantages:
Slow response time on multifunctional problems
Backlog of decisions at top of hierarchy
Bottlenecks due to sequential tasks
Restricted view of organization among employees
Inexact measurement of performance
Narrow training for potential managers
2. Divisional structure is a type of departmentalization in which
positions are grouped according to similarity of products, services,
or markets. With the divisional structure, each division contains the
major functional resources it needs to pursue its own goals with
little or no reliance on other divisions.
Departmentalization base is the big plan by which jobs are grouped into units.in facts few organization show only one departmentalization base. The most common bases are function, product, location, and customer. The decision to use many bases is usually based on the specific needs of the corporation and on the strong
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
Grimsley, S. (2014). Organizational divisional structure: advantages, disadvantages and example. Education portal. Retrieved from http://education-portal.com/academy/lesson/organizational-divisional-structure-advantages-disadvantages-example.html
Organizational design helps determine which structure best suits the organizations needs by showing the company where its flaws are and allowing the company to adapt and fix its’ deficits. For a big company like Best Buy it seems the best choice for an organizational structure would be a hybrid or matrix structure. The company is so huge and has so many departments, it may take a couple of different strategies and ideas to keep the company running efficiently and profitable. Also, an organizational structure that works in one area may not always be the best for another are. Companies must find organizational structures that are efficient financially but also productively.
Departmentalization – The foundation for determining the way jobs will be grouped, which can include: function, process, geography, product, or customer.
Exploring the Types of Business Organisations There are two Business Sectors: Public Sector These are businesses owned and run by the government. Some examples of Services provided in the public sector are the postal service, schools, colleges, housing environment, some bus and train services, fire, police, ambulance and local justice and social services. Their method of raising capital is different as Private Sector businesses have to raise their own capital e.g. their own money, a bank loan etc. The Public Sector business can get the money required from the Treasury or from local rates.
This type of organisational structure has many levels of management. The organisational structure has been structured according to its own function i.e. marketing, finance, human resources and sales. This is known as a functional organisation. The hierarchical organisational structure of Wednesbury IKEA is very similar to a tall organisation structure.
In their 2005 book, Understanding and Managing: Organizational Behavior, Jennifer George and Gareth Jones define organizational structure as "the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate and work together to achieve an organization's goals." A logical consequence to an organization's structure is the resulting culture, which George and Jones further define as "the set of shared values, beliefs, and norms that influences the way employees think, feel, and behave toward each other and toward people outside the organization." Finding the right structure for one's organization is vital to its strength and longevity. Appropriate structures are commonly found by trial and error; most continue to evolve as the organization enters different stages of its existence. Structures are defined and redefined in accordance with the organization's strengths and weaknesses, maximizing one while attempting to decrease the other. Over the course of change of structural eras', so too will the culture change.
Its functional structure is organized with many executive vice presidents reporting to the CEO and additional functions representing a major component of the Target value chain such as a store, design, manufacturing, sales and marketing, logistics, and customer service. Each functional unit is supervised by a functional chain of command that focuses on their area of responsibility. This way CEO provides direction and ensures that the activities of the functional managers are coordinated and integrated across Target
Different organizational structures have also been taught in the class; There are three types of organizational structures in which the authority of the project manager
The three perspectives can be compare and contrasted by using the organization structure which is the social and physical structure. Social structure is defined as connection and interaction between employees each department in an organization whereas physical structure is the actual layout of organization (Lecture slides, week 4, 2014, structure, culture and design). The social structure concept is developed by Max Webber for the purpose of looking through the division of labor, hierarchy of authority and corporate rules and procedures (Hatch and Cunliffe, 2009, p.103). Therefore, from a modernist perspective, it is clear that, structure differentiates through characteristic such as a flat or tall organization structure. Tall organization structures are those with divisions of labor through having many vertical hierarchy levels from top to bottom with only a few departments. Tall organizations on the other hand are those structures with a big number of divisions while having less hierarchical levels (Lecture slides, week 4, 2014, structure, culture and design). Modernists believe ...
An organization’s structure is crucial in deciding how tasks are managed or organized by employees and led by the top management. An organization’s structure provides a chance of untangling how the firm’s business is performing internally to ensure timely production of goods and services. When designing an organization’s structure, it is important to build it upon the vision and mission of the firm’s core objectives (Puffer, 2004). This kind of a structure will allow the set goals and initiatives to be met by the project scope. Thus, an organizational structure denotes how powers and responsibilities are allocated within the company, and work processes are carried out by members of the organization. The theme of this paper is to discuss the effects of Organizational structures on employees, Behavioral implications of different organizational designs and finally considering if there is a better structure in terms of its effects on its employees.
Organization structure is important in any companies no matter in any field because it is important in business process. These structures can be formed in any different sizes and ways. Organization structure is important in connect all the people in a company together. In an organization some of the departments have to depend on other department instruction to do work. For example, the culinary department in a hotel depends on purchasing department to get their ingredients for cooking. They have to cooperate with each others to strive for the goal and target. A company that is unorganized cannot perform effectively in particular area. Besides, organization structure in up rise discipline among the works in an organization. In organization, all employees have to hold their own position and responsibility. An organization structures is very important in a company that do any type of business because all task and event can be run smoothly before a due date. Organization structure is also important in communication between manager and employees. The employees must report directly to the manager about the event or activities that have been carried out. It is also important to manage the employees easily with the organization structure. Without organization structures the whole company will collapse because it is not organize and classify into different levels. This may cause a company to collapse.
According to Hatch and Cunliffe (2006), there are three major perspectives about the study of organization theory (OT): modern, symbolic interpretive, and postmodern. Each of these perspectives comes with its own assumptions and methodologies. Hatch and Cunliffe provided an introduction text about the concepts and characteristics of the three OT perspectives. Tsoukas and Knudsen also compiled a comprehensive handbook summarizing all facets of the meta-theoretical perspectives. In this post the writer will discuss the basic concepts of three perspectives, present Hatch and Cunliffe’s reasons why a multiple perspectives approach to organization theory is important, and compare Tsoukas and Knudsen’s introduction to the Hatch and Cunliffe introduction in their books.
Business structure is a critical factor to determine a company 's success or failure. Generally, larger organization has a more complex organizational structure. In the case of H&M, they had adopted matrix structure, one of the traditional organizational structure, into their business. As shown in figure 1, range of functional groups is listed horizontally across the table and on the other is product/task with a manager taking control of each. The functional structure is divided