Organizational structure is the most crucial element for the success of any business. This is because of the way it facilitates and supports the management system of the organization. It is through the structure that specialization and differentiation are attained. For effective management of the employees, different firms employ different structures for the organization that is unique to its operation and the organization culture.
There are several factors that influence organizations' activity, presence within the business environment, and success on the market. Such a factor is represented by their organizational structure. This organizational structure refers to the hierarchy within the organization, to the lines of authority and communication, to the rights, but also to the limits of competence within the organization. The organizational structure influences the assignation, the control, and coordination of the power within the organization. In addition to this, it also influences how information is transmitted within the company.
Organisational is a key element in a process of management. It is a system of structural relationship, all the way through which people under the path of managers, track their general goals. Members of an organisation require steady, perceptive structure within which they can work together toward organisational objectives. Organising is therefore the method by which an organisation
An examination of the management literature reveals a variety of constructs designed to allow an analysis of the functions of management and the roles of managers who perform the management task. These constructs can be broadly categorised into technical processes (with a scientific basis) and social processes (with a human relations basis).
Any organization should have its own operating structure in order to reach success. Organizational structure is defined as a hierarchy of people that determine roles of authority, communications, and the duties of an organization (Robbins et al., 2013). Organizations must organize their structure to meet the needs of that particular organization, and assure that it resembles the values instilled by the organizational culture. The development of culture through an organization is a natural process that is dependent upon the instilled values of the leaders and members in the organization (O’Neil, 2011). Leaders can still influence the culture by sticking to their values and implementing a strong and effective organizational structure. There are several models that organizations can utilize to structure the elements within the organization.
A managing team would be split up into three groups; top-level, middle and lower. There is specialisation in this managing sector where each group can focus on their own targets so that the large firm on the whole could potentially accomplish. The top level would be responsible for strategic decisions and so they must look into future prospects and be aware of external factors like markets. This can be advantageous, for the firm is looked upon wholly in comparison to the rest of the world. The middle level would be in charge of making the tactical decisions where they are responsible for carrying out choices made by the top level. This part of the sector would be the active doers where they put the ideas into practice. Finally the lower level managing group are responsible for the operational choices. They would concentrate on making sure that the other two are carrying out their goals. They can be portrayed as the motivating unit, to make sure that there isn’t any lack of action. This organisation of the division of labour can be extremely beneficial in achieving their goals. Management has a method where they would start by planning what they will do, following with organising to make optimum use of the resources required. Then there would be some motivation and leading where there would be some exhibition of skills. Lastly some controlling to ensure the plan is being followed. The procedure of
Managing an organization involves putting a structure to the business so that managers can manage, supervise and coordinate its people and organization’s performance. A structure serves as a framework for the purpose of outlining clear operating guidelines in order to keep the organization functional. It defines the hierarchical lines of authority, establishing job roles and responsibilities, details communication channels to determine how information should flow within the organization. A well-fitted organizational structure will have positive impacts on both its employees’ and its performance.
According to Boddy (2008), management refers to the process of bringing together individuals with the sole intention of achieving desired objectives, aims and goal using available resources effectively. Composed of several vital tenets, this paper seeks to
The inability to establish an effective management structure would be the case in this situation since there is no organization within the company such as; no clear lines of authority. To avoid this problem the owners should define the channels of communication among the employees, specify each employee's level of authority and
The twentieth century has brought in a number of management theories which have helped shaped our view of management in the present business environment. These emerging theories have enabled managers to appreciate new patterns of thinking, new ways of organising and new ways of managing organisations and people. Over the years these different theories have enabled the study
Organisations are made up of individuals brought together to enable the organisation to achieve its mission. The organisation's structure will determine how these individuals are brought together and how they relate to one another. The success of the organisation is dependent on each individual working together to achieve the common
The structure of the company also has an influence on the organization. Organizing the company by department allows the employees to build strong teams. It also allows the teams to support each other’s daily functions. The structure of the organization also effects number of personnel hired into the company. The structure also effects departmental and organizational hierarchy. The departmental organization within the company is also important as it helps to determine departmental collaboration as well as the role of each person in the department (www.smallbusiness.chron.com 2013).
7. Clegg, S., Kornberger, M., and Pitsis, T. (2011) Managing & Organisations: An Introduction to
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.
The definition of ‘management’ is controversial and subject to much debate. There have been many contradictory views on what the term ‘management’ means and accordingly how one should correctly manage an organisation. These theories have been put forward by several highly regarded management scholars over time. By taking into account past knowledge and contemporary views on management, we are able to ‘’explore how thinking has changed through time’’. (Brooks, 2006). Moreover, businesses have, and can continue to be able to adapt these theories and put them into practice. Successfully applying correct management practices is especially vital in a global business environment which is becoming very competitive. ‘’Most management theories, even those that do not resonate comfortably with the prevailing mood, have attractive and valid elements to them.’’ (Robinson, 2005). For example, some of these theories can be seen flourishing in fast food chains like McDonalds.