Every company has its own unique organisational structure. This can be described as the system or pattern of relationship in which power and roles are given to the employers and employees. It also involves how the company is designed in order to achieve its goals and its communication channels. A good structure is crucial because the strategic decisions made can either benefit or worsen an organisation (Mullins, 2005). For example, a good structure would encourage and motivate employees in order to keep morale and job satisfaction at the highest possible level so that productive efficiency can be reached. This essay will describe the different designs of organisational structures and assess whether in today’s world, organisations are …show more content…
This is because the company would be divided into smaller units related to specific products. As well as this, the division of labour would mean work is specialised which may increase work efficiency as each worker is able to use their skills best suited to the job although in the long run these kind of jobs can become repetitive and employees can become bored. Here, the company is decentralised with divisional managers making the decisions but managers should all be capable to do this. Adaptive structures are designed to deal with changing natures in the workplace.
For these structures, organisations can be centralised which means all major decisions are made from the head office which also means less autonomy and power from the division which can lower motivation levels for the employees. An example of this is Nissan where the CEO is the main man in making decisions such as eliminating the production capacity to lower financial difficulties. Whilst decentralised organisations would transfer its decision powers from the head office to the divisions. This means passing power down the hierarchy which means less standardisation on how things are completed since decisions are made by managers at the divisions. This may be beneficial since the employees would feel some empowerment can take place within its own division without having to consult the head office before passing on the span of control. Decentralised
In a hyper competitive market, the ability of an organization to respond and adapt to changes i.e. threats from competing firms, they have to spread the decision making power throughout the organization. The disadvantage of this type of decentralized structure is that at some points there might be contradictory decisions being made which would cause conflict within the organization and the success of any unit would depend on the capability of the head, on the other hand, it would be advantageous in the sense that in addition to enabling organizations to respond faster to changes in the market, it also builds confidence of employees and therefore is a means of
The productivity and economic efficiency is affecting the structure of an organisation, but also the job satisfaction and morale of the workforce. In organisational change the first step is getting the right structure.(Heller, R. 1997)
One key responsibility of working as a manager is to recognize the best way to organize and run an organization. A manager who can work with and put into motion the structure and plans of a company is very important to the life of the organization. Chief Executive Officer of Chick-fil-A Dan T. Cathy is an example of such a manager and business owner. Chick-fil-A began its journey in 1960 in Hapeville, Ga. Since then the second
In addition, it is essential to generate detailed divisions for merchandise progress and industrial can have an effect on the company’s administrative structure known as product evolution. Centralized management retains all major decisions with one detailed decision-making group, whereas decentralized management lets company managers to have more ‘say’ in the executive process. Next, corporations that participate in the mass production of products may not exert as
There are many benefits and disadvantages of the traditional structure within a corporation. The greatest benefits you get with the traditional structure of a corporation are specialization and efficiency. Within the structure there is a high level of specialization and each field of expertise or specialty is like a company within a company. Each one is pretty much charged to carry out a specific role or duty. Often times you start out at an entry-level position within the
All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.
This structural form allows for an organization to be divided into various divisions where people with diverse skills are kept together in the form of groups that focus on particular customers or services. Each division has its own finance, health services, human resources and marketing staff. Each division has its own knowledge, abilities, expertise and resources required to function properly and handle tasks on its own. Changes in the environment do not affect the HCO. With a decentralized authority, departments under the divisional form are able to monitor themselves and adjust accordingly, and make faster
In this report I aim to produce a large organisation that will, if created, be successful within its market. I shall search and provide relevant background research and empirical evidence to help create the organisation. The main aims for this report are to produce an organisational and management structure that is appropriate for the company I aim to create.
"A company can start out by using one of several organization structures. However, companies can sometimes increase their effectiveness using multiple organization structures. The decision for
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
Dave Grey believes the best form of structure for the modern day company is the ‘connected company’, as they ‘learn and move faster than their competitors’. This is due to the changing economic environment and how connected company structures were built to react to this. However, as company culture and employee motivation can be closely linked to the structure of a company, there will be noticeable challenges and benefits to any company implementing this structure.
Every organization needs a model to which they can structure their companny on, it is how they structure their organization that will determnine the relationship among the workers and the management. As for the nursing structure of the organization model it is imperative that the model is operational and resouresful in that the function of the organization can reach its common goal and mission. Since no company can function on it’s own it is imperative for the company to ensure commitment and integrety. Therfore, no matter which model an organiztion uses there will be pros and cons to each side. When looking at the flat organization model, for example, there are several pros to this. The first is the decentralization of the company, which
On the other hand, tall company must perform various levels. For example, low level employee must report to a supervisor, supervisor must inform to a manager, then director, who reports to a vice president, then finally, information send to the top management. In addition, staffs of a tall organization have many layers to pass for decision making which leads demotivates to the employees to work and decrease on the working condition which directly affect to the result of organization. F. Raza, (2016), what’s the ideal structure for your organization? Suggested that, decisions of top organization can be easily communicated to middle level helps to make accurate mission in the organization in flat organization. a flat organization give. (2015),
In a centralized organizational structure one individual is responsible for making all the decisions and maintains control of the company by giving direction. While Decentralized organizational structures often rely on several persons with the authority to make final decision for the company’s well being. Some benefits associated with a centralized organization are as follows: Reduction in cost in the work environment, having a focused vision on one common goal and Reduction in conflict. A Few drawbacks of a centralized organization include, No secrecy because all ideas and decisions are conveyed to all, No special attention and Delay in work. Advantages associated with Decentralization are; Huge relief is provided off the top managers, Greater use is made of employees skills and Decision making is left up to educational and well informed people.
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).