All rights reserved, The Relationship Between Organizational Structure And Job Performance, Organizational Structure And Behavior For Dunkin' Brands, Organizational Structure For Hardware Shack, Organizational Structure: Management, Marketing And Human Resource Management, AJS Organizational Administration In Justice And Security, The Organizational Structure Of Nazi Concentration Camp, Organizational And Management System Of Nike Company, Apple's Organizational Culture And Structure, Motivation And Leadership In Different Organizational Structures. (vi) Since each product manager is required to supervise the diverse functions of production, sales and finance with respect to a particular product line, there is a wide scope for the training and development of all round executives. Product is an important basis of departmentation because it creates product divisions each of which could be considered as a viable profit centre for accountability purposes. Instead, it has limitless span of control without the existence of hierarchical control. The SBU structure groups similar products, markets and/or technologies into homogeneous groups in order to achieve synergies. In this form, each major product or product line is organized as a separate unit. Each regional office has independent functional departments to realise its objectives. Learn more. He reports in a direct line to the up, but does not have a complete line of command below. In other words, an organization is known by its culture. i. It is highly informal and the coordination of tasks is accomplished by direct supervision. Websimple definition: 1. easy to understand or do; not difficult: 2. used to describe the one important fact, truth. Personnel are drawn from their respective functional departments. What are the advantages and disadvantages of organizational design? First of all, the performance of each divisions assessment can be done separately, and decisions can be made through their performance. But if a company is providing services in different regions, it would follow geographical or territory based structure. For example, if an organization emphasises product innovation and development in its strategy, its research and development may be given very high status. This is the reason why more and more organizations have put emphasis on creating self-managing teams. It can also be created geographically if the company has different geographic locations. The activities of the individuals and the groups will become more rational, stable and predictable. The major advantages of the functional type of organisation are the following: i. It helps in fast communication, since it is simple and informal, and. ii. In this structure employees are supervised by two or more managers who they report to depending on the situation or project. (ii) It allows giving balanced weightage to the basic functions on which the survival of a firm depends. It enables the company to cater to the needs of the different regions more effectively. The idea of this report is to analyze the retailer I have chosen how approaches its: Organizational Structure and Management, Marketing and Human resource management and, to discuss the different impacts the external business environment has and will have on the retailer. Each unit has its own functional structure for various activities necessary for the product. Question 1 Advantages of decentralised The advantages of a decentralised structure in relation to CBA are speed. (iv) There will also be problems in providing centralised services to various departments which are located in different regions. First, team-based organization requires a work culture that is quite different from traditional hierarchy-based organization. Thus, one can see marketing, materials management, production, finance and accounting, personnel and maintenance departments in the functional design of a company engaged in manufacturing. Divisional structure is similar to dividing an organization into several smaller organizations but it is not quite the same, since each smaller organization is not completely independent. Informal communication plays a bigger role. A functional design may be effective when an organization has a narrow product line, competes in a stable environment, pursues a low-cost or focused business strategy, and does not have to respond to the pressures of serving difficult types of customers. In fact, most of the companies in information technology sector which are engaged in development of software for different purposes and for different customer segments have adopted this approach. This essay sample was donated by a student to help the academic community. (ii) It focuses individual attention on each product line. i. Organizing a company in this way has inherent advantages and disadvantages. Most loved Kind to Skin Cleansing Wipes Kind to Skin Micellar Cleansing Water Kind to Skin Protecting Light Moisturizer SPF 15 Choose Kindness Thus, each functional staff has two bosseshis administrative head and his project manager. It ensures quick delivery of products to customers in different areas, and intensive exploitation of local markets. The advantages of matrix organizational structure. A blockchain is a distributed network that is composed of records that are maintained on v. In order to develop multi skills among employees, emphasis is put on horizontal transfer, just as is the case with job rotation. Simple structure is a basic organizational design structure with low departmentalization, little work specialization, wide spans of control, centralized authority (typically the owner has most of the power) and little formalization or rules that govern operation. There are different types of departmentation or organisational structure. Organisation involves establishing an appropriate structure for the goal-seeking activities. Functional departmentation is the most widely used basis for organising activities. iv. This structure is popular with giant firms dealing in multiple products and operating in different geographical regions. It is likely that the senior managers, confined mostly to their own functions, may neglect strategic issues. The activities or functions of all these departments are coordinated by the chief executive of the organization. They may compete with each other in certain areas. e. They prepare their own budgets and coordinate their work with other departments. Agreeing Joan Woodward contemplated inferred that innovation is a significant effect on hierarchical structure. Organizations in the camps were ranged from commanders to the camp officers, and the prisoners. Each regional office has its own set of functional departments and operates under the strategic policies and guidelines established by corporate management. 6. Because overall objectives are set and defined by top management, the functional units must also be organized in that perspective. However, virtual organisations may suffer from two problems. There is no accountability of each function for total results. Such organizations operate in a single product/service or very closely related products/services. (ii) The company can meet the demands of various regions more effectively. Away from of control, obligation relationship workplaces way better comprehension of the targets and the procedures of the undertaking. Entrepreneurial Structure (Simple Structure) 2. Upon completion of the project, these people may return to their original departments for further assignment. It is necessary for a company in this day and age to have a basic structure that determines the function of its operations, both internally in terms of the relations between the employees, managers and the objectives of the organization, and externally, as it will EduBirdie considers academic integrity to be the essential part of the learning process and does not support any violation of the academic standards. The local managers are more conversant with their needs and those of their customers. When the departments are created on the basis of basic functions and a manager feels that his span of management is too wide to manage effectively which invariably happens in large organizations, several departments are created on the basis of dividing a basic function into sub functions. It may be the wave of the future for organisations to capitalize on certain types of ventures or projects. If divisions did not exist, the organization will not know which places are profitable and which are making a loss. Thus, the process of functional differentiation may continue through successive levels in the hierarchy. (vii) Functional specialisation restricts development of generalists or managers with all-round capabilities. Data structures make it easier for us to handle data. Divisional Structure 4. Functional Structure 3. (iii) The project must be completed within the prescribed time. Employees who work in such a structure are well organized and grouped according to tasks and functions, Employees focus on specific work or mission, This structure lacks teamwork, communication and discussion, This structure also lacks creativity and it limits the employees ability to develop and improve, Each department operates as an independent company that work on its own aspects & divisions and specify budgets to control its own resources, It offers flexibility by allowing each employee to operate as if its own company, reporting to CEO, one or two upper supervisors, Employees working in different departments, but the same function are unable to communicate well, Divisional structure may have tax implications by raising issues with accounting practices, Sharing knowledge between the employees across different functional divisions, Attaining strong communicational skills & understanding roles, Broadening employees skills & knowledge, thus increasing professional company growth, Creating confusion and conflict between supervisors and bosses about the issue to be reported, Creating confusion regarding employees job roles if not clearly defined, It eliminate red tape that might stall innovation in functional structure, This structure could be confusing and inconvenient if all employees involved dont agree on the way of organizing the structure, Makes it more difficult to coordinate the activities and functions of a larger number of subordinates, This structure have been criticized on the ground that they put a lot of pressure on subordinates by imposing on them too much of responsibility. Functional department people are expected to discharge their responsibility within budget. Under the functional structure, the organisation is designed on the basis of the basic functions, namely, production, finance and accounting, marketing and personnel. Reliance Industries Limited has six product divisions-textiles, polyester, fibre, intermediates, polymers, chemical, and oil and gas. They provide organisations with both freedom and control, whilst still enabling transparency and progression for employees. The benefits of structure based on customers are as follows: (i) Customer departmentation can focus on the special needs of different kinds of customers. Also, a unitary government is very simple system, and as such less costly to run. During his assignment to a project, he works under the coordinative command of the project manager and he may be called upon by his permanent superior to perform certain services needed in the project. This type of structure is highly centralised. The different organisational structures described above have their own advantages and disadvantages. The product requires different type of efforts as compared to others in terms of marketing and/or production. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. They offer day courses, evening courses and correspondence courses to meet the requirements of different types of students. Computer networks are susceptible to attack from network hackers, viruses, and other types of mischiefs either for making money or just for fun. Highly responsive to environmental changes, iv. iv. 3. Intel was not happy about that venture and decided not to participate in any such venture. Committee Organisational Structure Features: (a) Formed for managing certain problems/situations. C)wCYP.TwslMK?yir~?_9:yizMX#Vw}Y}v~e}!6?_=}h[+|q]*S5z~ix:?EVF ?$d 1. For this purpose, all the functions required for strategy implementation are classified into basic, secondary, and supporting functions according to their nature and importance. Geographical structure is followed in case of service organisations which have offices in different regions or geographical areas. Functional structure provides essentially slow decision making process because the problem requiring a decision has to pass to various departments as all of them have something to say on the matter. Customer based structure is also not free from drawbacks. The merits of project structure are as under: (i) Project organisation concentrates on completion of a complex project or assignment. All replies. feeble-minded; not intelligent synonyms for simple Compare Synonyms clean elementary plain quiet smooth straightforward transparent uncomplicated cinch light picnic snap walkover child's play easy as pie effortless #@[[}w4. Determines the administrator and degree to which jobs, force and duties are designated. All major functions are under the direct control of the chief executive, making control easy and effective.
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