Operational strategies is another factor which can influence a business because if there was a new member of staff within a department which requires quite a lot of training it can cause disruption in the business as training may take over the daily tasks which have to be completed. The type of organizational structure would depend upon the type of organization itself and its philosophy of operations. The general policies are decided upon by the top management within the philosophical guidelines of the organization. For example, a bakery with a catering operation might structure the workforce based on key clientele, such as a wedding department and a wholesale-retail department. Neglects specialists in planning 2. Thus, the customers are the key to the way the activities are grouped.
The functional organization features separate hierarchies for each function creating a larger scale version of functional departments. Each division within this style of structure is equipped with its own resources in order for them to be able to function independently. They will do their task on a certain period. Promotes fast decision making 3. The Informal Organisation: An informal organisation is the set of evolving relationships and patterns of human interaction within an organisation which are not officially presented. Specialisation: Modern production and management techniques are based on the idea of specialization which means the performance of different parts of a job by persons specifically suited for them. If I were to look into a single handheld device that would improve my communication and organizational abilities, I need it to be able to do email, take notes, record conversations, connect to the internet, edit documents and even connect to a projector.
Functional departmentalization is the basis for grouping together jobs that relate to a single organizational function or specialized skill such as marketing, finance, production, and so on. Assess their current attitude towards the goal. Functional - grouping of major functions e. The line and staff type of organization is widely used and is advantageous to the extent that the specialized advice improves the quality of decisions resulting in operational economics. Once the project has been completed, the team members from various cross functional departments may go back to their previous positions or may be assigned to a new project.
Efficient functioning: Efficiency is to be the watchword of an enterprise, all the factors mentioned above will have a great impact on the efficient functioning of the enterprise, and Organisation avoids all duplication in jobs, overlapping and wastage. Functions of Different Organizational Structures Just like how some work projects benefit from adopting a specific workflow, organizations can often perform better when there's structural organization at work. Disadvantages of a Functional Organizational Structure The trouble with walls is, sometimes when they go up, they stay up. In matrix structures, there are functional managers and product or project or business group managers. It results in complex relationships. This style also risks duplicating activities and can be subject to miscommunication. Individuals are responsible both to their line manager and the project manager involved.
Because of the small size of the company, the line structure is simple and the authority and responsibility are clear-cut, easily assignable and traceable. It is through the organisation that one can know his position and role in the unit. The span of control of line managers can be increased because they are relieved of many functions which the staff people perform to assist the line. Understanding how they work may even enable you to get the best out of each of them! Within a matrix structure the organisation uses teams in order to complete tasks, and the teams are based on the functions in which they belong to within the organisation. A plus side to generalists is that they can often better appreciate the need for intradivisional communication or have better foresight for how one task benefits another and so on. A well-designed chart will make it easy to see who makes decisions, who reports to whom and how your organization divides up its operating functions. Divisional Larger companies that operate across several horizontal objectives sometimes use a divisional organizational structure.
The main advantage of this structure is that needs can be met specifically and quickly. However, as the war for talent continues to become more fierce, organizations around the world are quickly trying to figure out alternatives to the hierarchy. And if priorities are not clearly defined, employees, too, may get confused about their roles. But if you want to attract and keep qualified employees to help spread out responsibilities, you need an organizational hierarchy that promotes communication, defines the chain of command and shows employees how to advance their careers up the ladder. As it combines the benefits of the functional and divisional structures, this type of organizational structure is typically used in large multinational companies.
They will take a break when it is time to have a break. Each division within this style of structure is equipped with its own resources in order for them to be able to function independently. By being grouped with others who have the same fundamental knowledge, there's often a trade and complement of qualities that exchanges between these employees, which can help them expand their talents. These organisational structures are briefly described in the following paragraphs: 1. Excessive focus on internal relations. Functional organization divides employees into units based on job function and succeeds in large companies that produce large amounts of low price products or services. Feature: Temporary organisation designed to achieve specific results by using teams of specialists from different functional areas in the organisation.
Why we study Organisational Theory Organisational theory is especially useful for people who manage organisations, or who aspire to do so in the future. This structure allows for much more autonomy among groups within the organization. Staff can specialize in a particular business area. Summary Small businesses might follow a combination of the three basic organizational structures. Classical structure is common with very small businesses, it is very centralized, has few general functions and some specialists in critical positions as needed. . Efficient use of support systems.
Absence or faulty determination of responsibility will lead to irresponsible functions, behaviour and attitudes. The authority over the project team members is shared by project manager and the respective functional managers in the permanent organisation. Decisions made at this level will include the selection of operations, development of organisations in relation to external agencies and the wider social environment, e. A customer may get bounced from department to department if his problem doesn't relate to one particular function. This type of organizational structure takes lots of planning and effort, making it appropriate for large companies that have the resources to devote to managing a complex business framework. Committee members can be motivated to participate in group decision making.