Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
The impact of organizational structure on
Effect of organizational structures
5 Types of Organizational Structure
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: The impact of organizational structure on
Unit 1
In P3
An organisation structure of an business is vital for an organisation to make it to operating successfully, however the organisation structure should match the needs of the organisation like there functional needs, appropriate lines of communication and the structure to help the organisation to achieve there preventing and solution goals. Organisational structure is particularly important for decision making. Most companies either have a tall or flat organisational structure. Small companies usually use a flat organisational structure. For example, a manager can report directly to the president instead of a director, and her assistants are only two levels below the president. Flat structures enable small companies to make quicker decisions, as they
…show more content…
This may intake a solid lines and dotted lines a weaker reporting relationship, but still indicating some formal level of right to the individual’s time or it may mean multiple solid lines to more than one boss. The advantages of this organisation structure is that employees are in contact more people in their chain of organisation structure,
Hierarchical structures
• Pyramid shape structure, one person at top, few people report to him, slightly more report to them, more people further down the pyramid
• Advantages- Easy see different teams, what they’re called, how they relate, how many members (really clear how many people are at each level and team and how everything works, tall structure picture is confusing and has lots lines and shit, pyramid is not
• Disadvantages- Harder people from low levels reach
The first two characteristics are clear levels, with assignments flowing downward and accountability flowing upward, and a division of labor (Henslin, 2012). It means that there are different levels of responsibility and specific task they each perform in a bureaucracy. In a farmer’s market, there are three main levels: the owner, manager, and the vendors. The owner is in charge and they own the market. This person(s...
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)
Organizational structure can be defined as the “formal arrangement of jobs within an organization” (Robbins & Coulter, 2009, p. 185). Having a defined and unified structure helps employees work more efficiently. Jacques Kemp, former CEO of ING Insurance Asia/Pacific, realized this need early on in his role. The company had been performing well and recently acquired another insurance company to become “one of the largest life insurance companies in Asia-Pacific” (Schotter, 2006, p. 4). However, Kemp’s proactive personality led him to seek out ways to achieve more efficient coordination between the regional office and business units (Robbins & Coulter, 2009). Kemp noticed that “most business unit managers did not even know the current corporate standards” and he began searching for a way to manage the managers (Schotter, 2006, p. 5). ING Insurance Asia/Pacific’s organizational structure was mechanistic and fairly well structured, but for a company that had recently been involved in a major acquisition and was divided across 12 geographically dispersed markets there was a great need to tweak this structure to unify the company (Schotter, 2006). If I had been in Kemp’s position as CEO, I would have made modifications to the organizational chain of command, formalized business processes, and used technology to stimulate collaboration amongst the region to help this company overcome organizational design challenges.
There are three common organizational structures and those structures are the horizontal structure, the departmentalization structure, and the vertical structure. The vertical structure is composed of work specialization, which allows employees to specialize in a small specific task to increase efficiency. Work is then categorized in to different divisions also known as the division of labor. In the vertical structure chain of command exists. In the chain of command there are two types of principles,
Standing on a solid foundation would create a better business. Organizational design consist of many different structures depending on what type of business an individual wants to operate. If a business owner wants more of a traditional approach they might use functional organizational structure. However, if a business owner decides on a more contemporary approach they might lean more toward the matrix structure.
Most organizations fall under one of three organizational designs: simple structure, bureaucracy and matrix structure. The organizational design of a company suggests who makes executive decisions and how they are enforced. The organizational design is typically decided based on the size of the company and market place.
How the structure of an organisation is arranged depends on the company´s strategy and objectives. Organisational structure has a hierarchical nature. It is the specification of lines of authority and main tasks of an organization and it´s subjects. The structure provides an information about the main responsibilities and roles assigned to the particular elements of the organisation. (Organizational structure, n.d., “Definition” section, para 1- 2)
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.
(Vertical accountability- how well he can manage to get work done from lowerarchy and be accountable to hierarchy)
Organizational structures give essential systems to help operations continue easily and practically. Sorts of hierarchical structures incorporate practical, divisional, framework, group, system, and even structures. Each of these structures gives distinctive degrees of four normal hierarchical components and they are as followed. Span of control, departmentalization, centralization, and decentralization (“Characteristics of Organizational Structures”,n.d.).
Every organization has a structure that’s formal and an informal one also.Without management input or control informal groups are formed on the base of common interests need and friendship. In the informal organization, the emphasis is on people and their relationships; in the formal organization, the emphasis is on official organizational positions. Their structures are created in a way that enables the organization to meet its stated objectives. In this formal structures you will find hierarchies and processes that are the structure of the organization etched in stone. The job titles, organized by those with the responsibility for managing the organization. This is done normally with the u every organization has a structure that’s formal and an informal one also. Without management input or control informal groups are formed on the base of common interests need and friendship. In the informal organization, the emphasis is on people and their relationships; in the formal organization, the emphasis is on official organizational positions. Their structures are created in a way that enables the organization to meet its stated objectives. In this formal structures you will find hierarchies and processes that are the structure of the organization etched in stone. The job titles, organized by those with the responsibility for managing the organization. This is done normally with the use of an organizational chart that list the relationship and ranks of the positions in the organization known as the corporate ladder. They have charts that details the lines of authority and responsibilities of various positions, and outlines the formal power structure of the organization.
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.
Organizations, much like people, come in all shapes and sizes. While they may differ in values, beliefs, and purposes, the majority of businesses have similar organizational structures. The most common being a hierarchical structure. This structure is typically composed of at least three levels of management which include top management, middle management, and first-line management. Although all three types of managers contribute to planning, organizing, leading, and controlling the organization; they differ in the way they influence these functions. In addition, each level has different types of job positions and responsibilities which will now be discussed in detail.
Figure 1 is a simplified organigramme of a Laboratory administrative setup. Hard lines indicate in this figure indicates that the officer below directly reports to the immediate hierarchy who oversees all activities of the officer under his/her direct administration. Meanwhile, the broken lines show that an officer though reporting to the direct hierarchy may be expected to be accountable to an even higher authority in the ranking. These broken lines equally indicate that the Laboratory Manager has an overview of all units of his/her administrative setup.
This sort of plan is done by the middle level of organization for giving order to the lower level management