As a starting point, it is important to understand the difference between “organisational chart” and “organisational structure”.
Goodman, Fandt, Michlitsch and Lewis (2006:195) describe the organisational structure as the plan that describes the relationships between the jobs and departments, whereas the “chart” refers to the graphical representation of the organisational structure. This is reiterated by Brevis and Vrba (2014:342-345) where they explain that the organisational chart is a graphical representation of the organisational structure.
Some important factors of the principles of organising, according to Brevis and Vrba, include unity of command and chain of command which speak to reporting lines. They specifically highlight the importance of each person only having one supervisor they report to. Although work can be handed down from various sources, the line management authority should lie with one person only.
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This recommendation is complimented through insights from Khan (2016:137), who states that organisational structures mimic their environment and that structures that adapt more easily to changes in the business environment are those with the less centralised approach where employees enjoy some autonomy in their roles. These structures allow for quicker decision making, and even process flow, as a result.
Understandably there are additional factors to consider in deciding on the ideal organisational structure like the organisation’s size. In the case of London Hotel, the organisation is still small and, as such, the organisational structure is fairly flat. Figure 2, below, shows the recommended organisational chart for London Hotel, with relevance to the HR department.
London Hotel – Organisational chart of HR Department Figure
Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery
Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. According to USA their structure states in order to provide clear alignment and focus for the planning process of USAA’s organizational structure, a planning team was assembled with strategic-thought leaders to author a strategic market outlook.
Organizational structure indicates the company's formal reporting relationships, procedures, controls and authority, & decisions making process. An organisation's strategy is its plan for the whole business that sets out how the organisation will use its major resources. An organisation's structure is the way the pieces of the business fit together internally. It also covers the links with external factors such as partners and other parties. For the company to deliver its plans, the component of the structure must cooperate with each other
Having organizational structure also entails having what is called an organization chart. An organization chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. Sherill believes you need an organization chart so that you are aware of who to report to. Where Sherill is currently employed, has not had anything set up this way in a few years. People are not sure who they are to report to and often report to whoever they feel like. She has seen a few employees leave the company for other jobs because they felt that their job lacked structure and it was difficult for them to work in a place like that.
Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.
Organisation Design – This area of the map concentrates on shaping the organisation structure to the business
Organizational structure is the framework around which the organization is organized, the underpinnings, which keep the coalition functioning. It 's the operating manual that tells members how the organization is put together and how it works. More specifically, structure describes how members are accepted, how leadership is chosen, and how decisions are made (Nagy, 2014). With lives in their hands, hospitals have to function very precisely, executing high-quality services every hour of every day. Organizations that have this sort of requirement usually take on a vertical organizational structure (Feigenbaum, 2015). This type of structure has many layers of management, with most of the organization 's staff working in very specific, narrow, low-authority roles. The numerous layers of management are designed to make sure that no one person can throw the system off too much. This structure also ensures that tasks are being done exactly and correctly (Feigenbaum, 2015).
Organisations must organise a structure so that their objectives can be achieved. A company will have different departments and procedures with each one having a special function. All of these organised departments and procedures are linked so the company can run efficiently. For many organisation this can be very complex has they will have offices in international countries around the world.
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure:
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.
Aside from educating a manager through formal training in managing an organization through change, there are many ongoing activities that will increase a manager's awareness and aid them in supporting a more complex organizational structure as it develops. A company's organizational structure is a road map of its communication patterns. A well-designed structure can also make it easier to identify inefficiencies and new problems as the organization grows. Reviewing the organizational structure on a regular basis will help ensure that the organization set up for optimal growth well into
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.
“Every structure should be built to support its work load” This statement supports the use of the organizational chart within the work place, can you begin to imagine the confusion that would exist without it? In a company organizing, is to arrange or to position resources strategically in order to achieve goals. It is imperative for a company to function efficiently, under the use of an organizational structure. An organizational structure provides balance in the work environment and monitors the workflow of all employees. It also provides growth in the organization, in terms of new employment and other major achievements. A company that exist without practicing organizational structure would cause a lot of confusion and chaos as it relates
At least two different organizational structures are identified, described, and compared in terms of their design principles.