Advantages And Disadvantages Of Abraham's Store

George, Jones & Sharbrough (1996) suggested using a functional structure when organisations can departmentalise group jobs based on similar functions. These departments can include a wide range of groups such as,

One the impact of such functional structure is that the effective communication and synchronization among division might be limited due to organizational restriction for having several divisions that will work individually (www.business2000, 2016).

The Organizing function of management is one of the four main functions of management. Organizing within a company is very important and affects several aspects of a company’s organizational resources. In this paper, I will attempt to explain how the organizing function of management relates to the following organizational resources at The Home Depot: Technology and Knowledge. I will also discuss whether or not The Home Depot has optimized these organizational resources for effectiveness as well as efficiency.

The job design and the motivation are not self-sufficient to increase the productivity and they require an organizational structure to further coordinate organizational activities. Organizational structure, through its chain of command, coordinates, motivates and monitors employees.   Buchanan and Huczynski (2010) argue that the structure of the organizations serves 3 functions:

An organization must align its strategy and structure to allow itself to achieve performance improvements over time. The four different structures, simple, functional, multidivisional, and matrix, are all suited to allow companies with different strategies to succeed but the company must decide which of these is correct for itself. A small start-up company will overburden itself with excessive cost if it seeks to implement a functional structure because it clearly will not have the talent on hand to create whole departments of HR employees or accountants. On the other hand, a company that grows to become a large multi-national

The organizational design has been put in place by the owner. The owner has put the utilized the departmentalization by geographic region. As the district manager, I will be in charge of hiring and monitoring the store managers. These store managers with have complete authority in their stores. As the district manager I will guide the manager into the direction that I would like for them to go. If a store manager does things that should not be done by a store manager, I will be required to disciple the store manager. I would urge the store managers to have mechanistic organizations in the business. Mechanistic organizations are characterized by the high use of rules and procedures, a greater number of levels in the organization, and formal relationships between workers. I would create more of an organic

This could be a good thing because the flexibility is there and there are expertise and efficiency present. The sad thing is there could be conflicts between departments and units, too much administrative overhead, and there is a slow response to situations. Mainly, this type of structure is used for environmental uncertainty and by companies operating all over the world.

Set and analyze the policies and procedures to structure a management framework, which support efficient production. In order to create an effective organization, I arrange all personnel into functional groups, such as Finance, Purchasing, Marketing, Sales and Human Resources. Align each group’s performance goals with the company’s strategic objectives.

More structure in the work place will improve the Managers approach to Recruitment, Training, Food Production and Provision also lowering the staff turnover, raise the standard of food production and the staff will be more experienced.

All in all, the cross-functional structure allows employees to create the set of functions they need in order to scan and monitor the competitive environment and obtain information about the way it is changing. With the right set of functions in place, Morgan Stanley’s managers are then in a good position to develop a strategy that allows the organization to respond to its changing situation quickly. Employees in the first line work level would communicate more with the customers. Under the cross-functional structure, the group can decide every aspect of a business. For example, the group formed to deal with real estate investment can make decision to set the price by themselves instead of the Morgan Stanley Marketing department. It will let the service firm keep itself closer to the market and customers.

The functional organisational structure is also present at Verizon Company. This means that functions of the company like coordination, task allocation and supervision are group together, and employees placed where they are suited best. It is clear

Effective organizational structures define how job tasks are subdivided, grouped, coordinated, and managed. Six key components of organizational structures include division of labor, departmentalization, chain of command, span of control, centralization, and formalization (Remme, Jones, Van der Heijden, & De Bono, 2008, p. 79). Each element influence how employees interact with each other to reach organizational goals. Different structures are common in similar organizations among high performing organizations (Reimann, 1974, p. 707). The most appropriate structure will depend on the unique needs and culture of the organization.

Manager’s of an organization has to use structure to help the company run efficiently. “The five types of organizational structures are functional, divisional, matrix, team-based, and virtual network” (Draft, 2013, p.316). Functional structure in an organization that is developed by grouping departments by the skills, level of knowledge, activities done daily, and the resource used. “This structure places specific departments from the bottom to the top” (Draft, 2013, p.318). For example, specific departments such as: human resources, accounting, engineering, and manufacturing are placed at the top, while there are mostly seen at the bottom in other organizations. While common functions such as; people, facilities, and other resources are combined together as a single department instead of being divided into multiple departments.

Organizational structure is definitely a must have in an organization. Organizational structure is designed to form and develop clear lines of order to control an organization getting the best use of the organizations resources. According to Mahmud Hasan, some advantages of organization structure are that is easier to control the resources and they can be rationed and allocated to different units to use them at their more productive use at a micro level. Another advantage would be that clearly defined reporting lines make it easy for employees to know whom to report to while reducing redundancies by eliminating extra or unproductive processes. Other advantages are to streamline processes by giving them more focus and adoptive nature, reduce cost because the controlling of various cost control centers are controlled at micro level. Lastly, another advantage is it will help reduce cost because the controlling of various cost control centers are collected at micro level (Hasan, 2010).

At least two different organizational structures are identified, described, and compared in terms of their design principles.