Q1.2
Reference: http://smallbusiness.chron.com/organizational-structure-important-3793.html
Organisation structure:
• An organizational structure states how task allocation for different department, coordination and supervision are directed towards the achievement of organizational goal. It can also be considered as keeping eyes through which individuals see their organization and its environment.
• Normally every organisation having different department, and for the different department every organisations appoint different leaders to supervise the staff from different department, they have authority to assign role, Responsibilities.
• Normally every organisational structure is particularly important for decision making, it has to be clear
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• Organisation structure gives direction to all representatives by laying out the official reporting connections that administer the work process of the organization. A formal framework of an organization 's structure makes it less demanding to include new positions in the organization, also, giving an adaptable and prepared means for development.
• Organisation structure is very important in accomplishing objectives and results. Organisation structure takes into consideration the chain of leadership. All the leaders are accountable for designating undertakings and tasks to subordinates so the department can meet the due dates. Generally, organisation structure cultivates teamwork, where everybody in the department moves in the direction of same
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Leaders can gather all the information and productively discuss upsides and downsides of decision in a little gathering. This makes the correspondence and decision making process considerably more efficient than in decentralized structures in which numerous the top level manager or leaders must take an interest all the while. When decision are made, top managers convey orders to lower levels for execution as coordinated.
• Centralized organisations can experience the effects of the negative impacts of a few layers of organization. These organizations regularly have various administration layers extending starting from the owner to forefront operations. top level manager, owners or leaders in charge of settling on every decision in the organization may require more opportunity to finish given
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
Task structure refers to the degree of structuring the working environment (highly or fairly structured).
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:
The Company observes the practice of decentralization where the responsibility and authority in all decision-making for the divisions’ operations lie in its respective division managers, except those relating to overall company policy.
Each plant comprises a number of small; multi-skilled; flexible; collaborative and self-managed teams instead of functional departments with specialised functions (e.g. legal, finance or human resources etc as in a conventional system). These teams have the decision-making power over all plant-specific business functions including capital allocation, expenditures, strategic planning and plant design. This bottom-up decision making process emphasises the trust the company places in its employees and is very effective in decentralizing the power base, consequently, involving every employee in being responsible for the performance of the company not just the CEO.
Looking at IKEA’s organisational structure, the chain of command shows a clear line for messages within functional departments, so therefore; it leads to good communication. For example, looking at the organisational structure of IKEA, there is a clear communication within a human resources department. However, the chain of command is very long from the top to the bottom of the organisation because, there are too many levels of management. This will lead to poor communication. For example, it takes decisions a long time to reach the workers at the bottom of the organisation structure.
Organizational structure is one of the three key organizational assets that could contribute to the effectiveness of operations of any organization (Zheng, Yan and Mclean 2009) It is joined together by different flows of information, decision processes, hierarchy of authority, specialization and working materials. (Enz 2009; Mintzberg 1980) Furthermore, it also determines the operating workflow, control of information, decision-making in the organization and the line authority (Mintzberg 1980). The facets of the organizational structure, the relationships that exist within it, and how the business processes (Bititci et al 2011) are controlled, determine the managerial style that should be utilized in addition to the strategies the organization could implement. Going further, a company’s organizational design and the parts that constitute it are seen as a contributing factor to superior performance, which ultimately provide an organization with competitive advantage over its competitors. (Enz 2009; Zheng, Yang, and Mclean 2009)
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.
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.
First of all, organizational structure determines the hierarchy, the levels of communication, and how job tasks are formally divided, grouped and coordinated within an organization (Langton, Robbins, & Judge, 2013). There are six key elements that managers need to address when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization (Langton et al., 2013). The way in which an organizational structure is constructed and implemented can affect company productivity.
Understanding the structure of an organization plays a vital role in laying the blueprint for how a company will be managed and organized. It provides a well-defined framework that outlines the roles and responsibilities of each employee in a particular company. It shows how each employee interacts and works one another in achieving the goals of a company. In other words, organizational structure is a reflection of the working relationships that govern the workflow of the company. It has a profound effect on a company’s structural dimensions, which includes formalization, specialization, hierarchy and centralization.
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.
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.
To achieve this, managers must undertake the following functions: * Organisation * Planning * Staffing * Directing * Controlling Leadership is just one important component of the directing function.