1101IBA – Management Concepts
Literature Review and Report
Valve Case Study
By
Muhammad Rabani b. Shamsul Khairil s2834180 Semester 2, 2012
1 583 words
Table of Content
1. Introduction 3 2. Problem Identification 3 3. Analysis 4 3.1 Vertical Organisation Structure 4 3.2 Horizontal Organisation Structure 5 4. Recommendations 6 5. Conclusion
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This enables organisation a better at designation of tasks to employees or departments within the company, have well-defined responsibilities for employees, and are generally easier to manage. This enables problems to be solved quickly and projects or tasks are done according to plan. Because of this distribution of power and centralisation in decision making, vertical organisation structure provides the organisation the ability to grow efficiently as well increase productivity (Mihm et al. 2010, p 831). As company grows large, management are required to solve problems that are complex because of multiple relevant technologies, globalizing markets, multiple interacting business processes, and collaboration with external partners, vertical organisation structure helps in solving these challenges.
A major problem for vertical organisation structure is that because of the pyramid shapes of the structure, it lacks the transparency of information because each layer muddles information more and more and tends to create boundaries between departments or branches in an organization. For example, person down one branch must go up the chain of command on his branch and then down the chain of command on the other branch in order to interact with someone down the chain of command on a different branch (Damraks 2009, p7-8). This may lead to poor inter group interaction which can result in
Another possible internal structure would be a decentralised structure. A Decentralised structure is also suitable for Techno as decision-making and control are delegated to and carried out by subordinates. This relieves senior management of having to make many of the routine operational decisions required by the organisation. This structure is often associated with a flat structure and also has several key advantages:
The hierarchical organization structure is pyramid-shaped. At the top of the structure is a single person, who has a small number of people reporting directly to them. Each of these people has several people reporting into them and the number of people at each level increases as you move down the structure.
A Hierarchical structure is a term used to organise a business into different categories of employees that contain multiple types of groups, which would be typically in a chain of commands that is usually in a pyramid that contains a large number of employees, so the lower part of the pyramid having the responsibility of a small role, meanwhile the upper part of the pyramid consists of roles that carry a big responsibility. However, there is one rank that is one
An advantage of Tesco PLC being part of a hierarchical structure is having a clear authority in each of the levels. This is an advantage because of the various levels having different levels of responsibilities and authorities. As top of the hierarchical structure as shown in the diagram above is the manager director who is the one to have the most control and authority its where the managers will confide in for guidance. Due to being on the level under the manager director as the manager director for example will have their say over what the managers will do. As the hierarchical structure descends there’s less control and authority. Furthermore, is an advantage because Tesco PLC for example, would be able
The organizational structures within a company can be the determining factor if a business can run efficiently or run chaotically into ruin. The organizational structure is the different hierarchy’s and arrangement of authority, roles and duties in an organization. The Cheesecake factory has a very effective organizational structure which allows for its operations to run smoothly and enables the Cheesecake factory to be one of the highest earning restaurant chains. The structure contains three main levels. The first and highest level is the board of directors which contains 7 members, including the CEO David Overton and 6 directors. The next level of hierarchy called N-1 contains 7 levels including the CFO, President, Area Operations,
Organization is based on several levels with each different authority. Information flows gradually from the bottom to the top level, as well as tiered command line from top to bottom. Hierarchical system as it was made into a rigid bureaucracy and made the decision-making process becomes fragmented because of the flow of information and commands only run vertically. For example, the organizational structure of the Ministry of Internal Transport of Sri Langka at least has seven levels of bureaucracy, from bottom to higher levels start from additional deputy director, deputy director, director, additional secretary, secretary, deputy minister, and minister. Such hierarchy is likely to cause substantial distortion, in terms of information delivery from the bottom to the top and in terms of translating messages or orders from
“An organizational structure defines how job tasks are formally divided, grouped, and coordinated” (Robbins and Judge, 2007, p. 583). The six key elements that Robbins and Judge explain that managers need to address are; work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Coming from a military background, I find it easy and effective to bring in a strong chain of command. Robbins and Judge (2007) define chain of command as “an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom” (p. 542). This chain of command eliminates confusion, keeps employees working on their respective tasks without distracting others with any involvement on certain areas, and can help to break up the cliques. Currently there is a jumbled Sociogram depicting unilateral and bilateral communication throughout the organization. The chain of command can stream line this communication and ensure the right tasks are being delegated and communication can be effectively transferred through the appropriate levels to increase efficiency.
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:
When it comes to business as any organizations it requires a structure, based on the resources and demands organization can changed or modify their structure. The most common two structures are vertical and horizontal structure which we see every business organization in global market (Bateman & Snell, 2011). In today’s any business organization theirs and important trait is not only the structure, it is the functions within the organization. An organizing function in management highlights the practices individuals use to interact and work with each other. There are many business organizations that are very successful in their own
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
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 major problem every company encounters is the structure or hierarchy of the organization. Usually, it is in the form of a pyramid and gets narrower as it rises resulting in the few people on the top of the pyramid gets more advantages in the company. But the lower level employees are not given that importance when it comes to the utilization of the benefits provided by the company.
Structure and hierarchy come from how work and the work processes are coordinated together and relating how tasks and coordination of these tasks is to be obtained. When determining the authority in the structure of an organization, there are two major options, centralized and decentralized. A centralized organizational setup is where the authority to make important decisions is retained by managers at the top of the created hierarchy whereas a decentralized organizational setup is where the authority to make important decisions about organizational resources and to initiate new projects is delegated to managers at all levels in the hierarchy. Each choice is made based upon the main goal/task of the organization and what would better fit the organization. Whether work/the
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).