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3 types of organizational structure
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Introduction
Different organisational structures are used in all types of businesses and companies. Organisational structure is a system of tasks, workflows, reporting relationships and communication links; that if used fittingly, can be an asset to the organisation (Schermerhorn et al. 2014, p. 260). This can be hard for managers as the environment and times are always changing and with that, structures must change also (Schermerhorn et al. 2014, p. 260). Two types of structures have been created from the changing times; vertical and horizontal. Traditional structures have used this vertical system while the contemporary movement of structures are opting for a horizontal approach. Both these traditional and modern structures have many organisational charts for structuring the many different varieties of businesses.
The purpose of this report is to describe the three traditional organisational structures and to describe two modern organisational designs. The highlighted structures are the Functional, Divisional and Matrix structures, along with the team and network structures. Illustrations of each structure will be provided as charts along with their advantages and disadvantages. This report will also mention how the contemporary environment has had an impact on organisational structures.
Traditional Organisational Structures
Functional
Traditional structures rely largely on the vertical hierarchy and the chain of command to define departmental groupings (Anand & Daft 2007). In functional structures, people are grouped together according to their similarity in skills and the tasks that they perform. Members work within their own area of expertise where each department is responsible for only their own work and problems. Each func...
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...organisations that are fast-moving, are highly innovative, require speed and flexibility and high levels of customer focus (Stanford 2007, p.58).
Chart
Advantages/Disadvantages
Conclusion
This report has looked at ….
Reference List
Anand, N & Daft, R 2007, ‘What is the right organization design?’, Organizational Dynamics, vol. 36, no. 4, pp. 329-344
Daft, R.L 2013, Organizational theory & design, 11th edn, Cengage Learning, South-Western.
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Stanford, N 2007, ‘Chapter 3: organisational structures’, Guide to Organisational Design, pp. 46-79
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
Robbins S, DeCenzo D, Coulter M, Woods M 2012, Management: The Essentials, 1st Edition, Pearson Australia, Frenchs Forest.
Organizations are initially structured around tasks, and as the organization continues to grow, the structure within the organization takes on many characteristics. Not all structures are advantageous, especially if they are lacking in some areas. There is a relationship between structure and size of the organization that affect the centralization of the organization. At the highest levels, the personality of the chief executive may amend the organizations' structure. The structure within an organization helps define the roles and responsibilities among the members from each department and work group. The four general types of organization structure are functional, divisional, matrix, and project based. “Organizational structure is the skeleton of an organization” (Feigenbaum, 2013) and how these individuals relate to each another. Structure is a statement of the current affairs, not the ideas, intentions or improvement within an organization. When business leaders develop their initial plans for an organization, he or she looks at how to design a company and takes inventory of all the tasks, functions and goals of the business. The leader then develops groupings and ordering of job positions, departments, and human resources to effectively and efficiently perform these tasks. Technology, size, environment, strategy and goals affect an organizational structure and effects, whether they are categorized as mechanistic or organic.
Robbins, S. P., & Coulter. M. (2014). Management (12th ed.). Retrieved from: Colorado Technical University eBook Collection database.
Robbins, S., Decenzo, D., & Coulter, M. (2013). Fundamentals of management. Upper Saddle River, NJ: Pearson Education, Inc.
(2014) is “the way in which leaders interact, make decisions, and influence others in the organization” (p 237). The culture needs to foster cooperation from all areas of an organization, while providing the ability for adaptation and growth. Not all organizations culture will be the same, there is not a correct one that can blanket all organizations to cozy success. (3) Talent Systems. Human capital drives all organizations, the right people need to be in the right jobs with the correct opportunities for growth and advancement. There must be a constant search for strategic thinkers and leaders able to step up with called upon. The authors mention “Talent Sustainability” (p. 248), there must be enough qualified employees ready to move up so the organization will not stall while searching for others to replace others due to attrition, or other opportunists. (4) Organizational Design, must take a number of variables into account while providing structure to an organization. Hughes et al. (2014) state “the design of the organization is a trade-off between options, each with advantages and disadvantages” (p 253). The correct design can help clear the hierarchy of an organization and the proper channels for
Organisational Structure, Culture, and Management Style of a Business C2 An Analysis of How the Organisational Structure, Culture And Management Style of the Business Affects its Performance and Operation and Help It to Meet Its Objectives The organisation structure of Wednesbury IKEA The organisation structure in the ‘Appendix section’ belongs to the Wednesbury branch of IKEA. Wednesbury IKEA is a large formal organisation and it is best suited to a hierarchical organisational structure. This is because; there are more employees as it goes downwards from each level.
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.
Chapman, S, Devenish, N 2011, Business Studies in Action, 3rd ed, John Wiley & Sons Australia, Milton, Qld.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2011). Classics of organization theory. Boston, MA:
OLLIER-MALATERRE, ARIANE; ROTHBARD, NANCY P.; BERG, JUSTIN M. Academy of Management Review (Oct2013), Vol. 38 Issue 4
Goodman, E 2011, ‘Organizational change: A critical challenge for team effectiveness’, Business information review, vol.28, pp. 242-250, DOI: 10.1177/0266382111427087
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