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Structure/design of organizations
Pro and cons decentralized organization
Explain about key terms of organization structure
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An organization structure can be defined as the analytical arrangement of tasks, duties and roles and responsibilities with the aim to achieve the predetermined objectives of an organization. It also helps to coordinate among the individuals in the organization by deciding who will work under whom. This is interpersonal relation between individuals and the jobs assigned to them. Organisation structure can be classified into two categories:
1. Centralized structure
2. Decentralized structure
In centralized structure, all the decisions are in hands of the top level management and later passed on to the lower level. This structure is mainly found in small scale industries where the hierarchy level is low. In decentralized structure, equal distribution of authority is given to each department to make decisions required to achieve the organizational goal. This structure is found in many large scale industries to run the organizational smoothly and efficiently.
Concept+ Application
There are various approaches of organizational structure:
1. Six box organizational model: The six-box model is a framework developed by the American analyst Marvin Weisbord to assess the functioning of organizations. It is a
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Staffers report to a functional manager who can help with skills and help prioritize and review work, and to a product line manager who sets direction on product offerings by the company. This structure has some advantages such as resources can be used efficiently, since experts and equipment can be shared across projects. Products and projects are formally coordinated across functional departments. Information flows both across and up through the organization. Employees are in contact with many people, which helps with sharing of information and can speed the decision
Top management decides the degree of centralization by picking and choosing who will be focus more on who they want to push to get the job done. If they focus more on the lower crew members, while centralizing will have them focused on the upper brass of the corporate company.
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
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.
Organizational culture is a reflective view of the inner workings of an organization. This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, duties, and communication processes. Organizational structure establishes the manner in which power and roles are coordinated and controlled amongst the varying levels of management. The structure of an organization is dependent upon their goals, objectives, and strategy. Determining organizational structure best suited for an organization is generally found within the six key elements of organizational structure and choosing those to implement those best suited for the organization. The six key elements include:
What elements of social structure do you see in this video? How could they lead to crime or criminal behavior?
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
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.
Two important perspectives in the organizations literature have been prominent over the past several decades: organizational ecology and the new institutionalism. Ecology is often centered around the demography of organizations e.g. firm creation and mortality, while institutionalism seeks to explain organizational behavior based on the social and cultural construction of legitimacy. Ecology tends to explain the diversity of organizations we observe, institutionalism their resemblances (Lee, 2012). Despite these differences, organizational ecology and new institutionalism have much in common, as they both developed as challenges to rationalist approaches. The integration of these two traditions can be leveraged to develop valuable insights
Morgan, G. (1980). Paradigms, metaphors, and puzzle solving in organization theory. Administrative Science Quarterly, 25(4), 605-622.
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.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
In modern days, organizational architecture plays a key role in order to allow companies to get success in the market. Organizational architecture, also known as organizational structure, defines as a structure that where the specific company whether works roles, decision making or responsibility are centralized, delegated or coordinated. The organizational structure also identify how the information from level to level within the company. IKEA is one of the international famous firms that designs and produces home furniture such as bed frames and desks. The company also is the leader in retailing furniture and has become the largest furniture retailer over the globe.
Combinations of different experiences and education have developed a variety of assumptions about how an organisation works. The use of metaphors when describing organisation movements and change is an important way in which we express these assumptions (Cameron and Green, 2012). Gareth Morgan’s (1986) work on organizational metaphors is good for understanding the different assumptions and beliefs about change that exists. He identifies eight organizational metaphors; machines, organisms, brains, cultures, political systems, psychic prisons and flux and transformation (Morgan, 1986).
Organizational structure indicates to how the work of employees and teams within an organization is coordinated. In order to obtain organizational goals, individual work needs to be coordinated and managed. Structure is an important instrument in obtaining coordination, as it appoints reporting relations (who reports to whom), designs formal communication channels, and portray how different actions of individuals are linked together.
Learning is defined as a measurable and the act or the process of acquiring a relatively permanent change in a behavioural tendency through knowledge, skills and experience. People learn in their lifetime. The learning process continues throughout our life and it is the first step in becoming an outstanding performer. In today’s rapidly developing world, if you do not keep learning, you are not standing still, you are falling behind. This is not only applied to individual, but also for the organizations. But here comes the questions: Is individual and the organization can learn? In order to answer this question, we need to imply the use of the theories and ideas and also discuss how the culture, group and emotion of the individuals or organization will affect the learning organization.