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. “Divisional structure is known by the approach of having similar skills and resources grouped together into divisions” (Draft, 2013, p.318). This occurs when a company has common goals that the company wants to achieve. This allows all skills and departments to come together and produce the goal there are looking to achieve. In this type of structure not one person is viewed as important than the next one, because it takes everyone to work together to produce the outcome the company wants to achieve. “The matrix structure uses both functional and divisional structures to run an organization” (Draft, 2013, p.321). This allows the company to
Organizational structure determines how activities such as task allocation, coordination and supervision are direct towards the achievement of organizational goals. It can be considered as the viewing class through which individuals see their organizations and itsenvironment. The structure of the organization can be in different forms depending on
The structure and design of organizations have drastically changed over the last twenty-five years. Organizations develop new goals at the beginning of the year or after the completion of previous goals, and heavily depend on planning to help achieve these goals. Planning is an integral part of organizational success, as upper management receives substantial information on various needs such as risk uncertainty, available resources, employee development, and unforeseen changes in technology (Daft, 2013). Most importantly, successful planning allows management to make effective decisions when unforeseen events arise within the organization. Not participating in planning is equivalent to taking a road trip across the country without a
The company is geographically located in most major united states locations. It employs a hierarchal organizational design. One of the contributing factors to its success is the company’s success in providing a dining experience for its customers that excel in choices, price, customer service, and serving size. The company is known world-wide for its delicious cheesecakes with the key factor being the variety.
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.
Here is a first hand account of culture, structure and systems not being in harmony. In 1994, Ticketmaster (TM) United States became a major presence in the ticketing industry. As part of their growth strategy, they expanded through the re-acquisition of all licensees. One of the licensees was the Canadian Ticketmaster business. From 1995 to 1997, TM Canada was forced to transform organizationally to become similar to our American parent. The cultural breakdown occurred when transitioning from networked “(high on sociability; low on solidarity)” to mercenary “(low on sociability; high on solidarity)” (Langton & Robbins, 2007, p. #341-342). For example, the lack of accountability
Matrix organizational structures combine the characteristics of a functional and divisional organizational structure. The matrix organizational structure works more like a team. Instead of department heads, each team has a leader. Matrix organizational structures bring together employees who focus on a project, but fill different roles from across your business. The matrix organizational structure has the most decentralization, which means it can confuse employees about who is in charge. The matrix organizational structure is appropriate if your business operates on an international level, or serves different geographic regions.
This pyramid-shaped hierarchy is the most common organizational structure for HCOs. Size and complexity of the HCOs dictates this particular structure. This form organizes departments and various positions according to employee roles and abilities. Often used by smaller HCOs in stable environments that offer fewer services. This form allows for efficiency and cost control and development of in-depth knowledge and skills. The functional form is, however, not as effective for large, diversified HCOs in rapidly changing environments because decision making is too centralized and would therefore be too slow. This form also lacks horizontal departmental coordination between workers and functional VPs (Olden, 2015).
What are the five structural configurations, who uses these configuration methods and why do you think they (the company or organization fits into this type of configuration rather than that of the other types); as well as what type of structural configuration does my workplace currently use. So, what is the five structural configurations are as follows: “Simple Edifice, Machine Administration, Professional Government, and Adhocracy” (Nelson & Quick, 2017, pg. 244). Basically, these configurations consist of “Differentiation, integration, and the basic design dimensions combine to yield various structural configurations” (Nelson & Quick, 2017, pg. 244). These logistic edifices are usually founded on artefact and purpose in the early stages of the structural process, and formed using the matrix organization format introduced by Mintzberg. “The five rudimentary fragments of the organization, for Mintzberg, are the upper echelon, or strategic apex; the middle level, or middle line; the operating core, where work is accomplished; the technical staff, or technostructure; and the support staff” (Nelson & Quick, 2017, pg. 244). However, these five basic configurations work differently among the organizations due to the support it gives regarding the organization’s tactical purpose.
The functional structure provides employees, as well as their appropriate departments, with a clear objective and purpose for their work. As an example, employees within a marketing department know that their job is marketing and, as a result, those employees can focus on improving their marketing work and even specialize in a specific area of marketing. On the other hand, functional structure can create divisions between departments if a conflict develops between departments.
For example, within the human resources department, all HR will share information and support the training and development of each employee.
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).
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.
As seen from figure 2, the matrix organisational structure is complex and aligns functional and divisional organisational structures merged into a hierarchical structure. The student observes that with this comes the potential to on the one hand, improve interdepartmental collaboration through avoiding silo-functioning and yet, on the other hand, blur the unity of command structure in an organisation that can be counterproductive. A critical analysis of two major advantages and disadvantages of this organisational structure here
When conducting research on this topic, I decided to explore the several different types of organizational structures, that seemed to be popular, and consistently changing throughout various organizations. Functional, Divisional, Matrix, Multidivisional, hybrid, network, and boundary less organizational structure are the top structures that companies have coined themselves for using, even if they have moved from one structure to another, at some time during the organizational growth path.
The structure of an organisation is built in order to achieve the distinct tasks by the labour and coordination between teams to provide goods and services. Organisational structure is selected in order to have a basic work and consistency according to the situation. The most foremost factors in an organisation are skilled labours, mutual understanding among the fellows and direct control to frame a good result. A good structured organisation results in quality production, which can be taken into peoples consider through marketing. When an organisation tracks in a solid structure, management plans and tasks can be easily constructed and executed. In this essay, I have been explained about the concept of Mintzberg five