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What Is An Organisation Structure?
Every organisation is composed of certain parts. These parts then have their various functions and are interdependent on each other for a smooth functioning of the organisation. An organisation's structure is a framework that allots a particular space for a particular department or an individual and shows its relationship to the other. An organisation's structure may be of many types, the most common of these being the hierarchical and the flat organisational structure. A horizontal organisational structure is what we call the traditional structure or at times, the bureaucratic structure where there are one or more levels between the most junior and the senior most employees. This helps in proper distribution of work but can be harmful in terms of efficiency and decision making. A flat organisation is much more rela ed and so!called modern in approach where everyone directly reports to a single boss. This could provide greater speed in the decision making process but then the boss ends up taking care of a lot of things thus making delegation difficult.
An organizational structure is a description of the types of coordination used to organize the actions of individuals and departments that contribute to achieving a common aim. Many organizations have hierarchical structures, but not all. Organizations are a variant of clustered entities. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.
controlled. "n organization chart illustrates the organizational structure. An effective organizational structure shall facilitate working relationships between various entities in the organization and may improve the working efficiency within the organizational units. and how information flows between levels of management. Therefore organizational structures shall be altered from time to time to . wor group and individual. #rganization shall support command for coping with a mi of orders and a change of conditions while performing work. or under permanent employment contracts or program orders. E. the decision making power is distributed and the departments and divisions have varying degrees of autonomy. !n a centralized structure. the fle ibility will decrease and the creativity will fatigue. power. department. the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions.g. andresponsibilities are delegated. !n a decentralized structure. aiming to optimize the ratio of effort and input to output. The set organizational structure may not coincide with facts. "uch divergence decreases performance. Formal and informal framework of policies and rules. and allocates rights and duties. %hen a business e pands. a wrong organizational structure may hamper cooperation and thus hinder the completion of orders in due time and within limits of resources and budgets.Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch. evolving in operational action. within which an organization arranges its lines of authority and communications. #rganization shall allow for application of individual skills to enable high fle ibility and apply creativity. !ndividuals in an organizational structure are normally hired under time"limited wor contracts or wor orders. Organizational structure determines the manner and extent to which roles. and coordinated. when growing. #rganization shall retain a set order and control to enable monitoring the processes. %hen an organization comes to age. #rganizational structures shall be adaptive to process re$uirements. the chain of command will lengthen and the spans of control will widen. This structure depends entirely on the organization's ob ectives and the strategy chosen to achieve them.
The strategic leader makes all key decisions and most communication is done by one on one conversations.enable recovery. Post-bureaucratic . &t is very much comple and useful for hierarchical structures organization. Organizational structure types Pre-bureaucratic structures -re!bureaucratic 0entrepreneurial1 structures lack standardization of tasks. Then tension between bureaucratic structures and non!bureaucratic is echoed in 2urns and "talker345 distinction between mechanistic and organic structures. &t is particularly useful for new 0entrepreneurial1 business as it enables the founder to control growth and development.ow residual mass -ermanent monitoring . They are better suited for more comple or larger scale organizations. &f such alteration is prevented internally. the final escape is to turn down the organization to prepare for a re!launch in an entirely new set up. &t is not the entire thing about bureaucratic structure.apid response "hared reliability /atri hierarchy History "ee also( +ierarchical organization and *lat organization #rganizational structures developed from the ancient times of hunters and collectors in tribal organizations through highly royal and clerical power structures to industrial structures and today's post!industrial structures. The structure is totally centralized. Success factors 'ommon success criteria for organizational structures are( • • • • • • • • • )ecentralized reporting *lat hierarchy +igh transient speed +igh transparency . Bureaucratic structures 2ureaucratic structures have a certain degree of standardization. They usually adopt a tall structure. This structure is most common in smaller organizations and is best used to solve simple tasks. They are usually based on traditional domination or charismatic domination in the sense of /a %eber's tripartite classification of authority. mostly in tall organizations.
069991 studied how simple structures could be used to generate improvisational outcomes in product development. open at the boundaries 0in direct contrast to culture management1> there is an emphasis on meta!decision making rules rather than decision making rules. in his classic study of culture management at 'Tech' argued that 'the essence of bureaucratic control ! the formalisation.ivkin and "igglekow3@5.The term of post bureaucratic is used in two senses in the organizational literature( one generic and one much more specific 365.2ut not only beneficial for organization but also for employees faiths. legal type.epenning 3A5 revive an older interest in how structure and strategy relate in dynamic environments. /oreover. provide a detailed discussion which attempts to describe an organization that is fundamentally not bureaucratic. #ther scholars such as ?an . :one of these however has left behind the core tenets of 2ureaucracy. This may include total $uality management.5. and have focused on how simple structures can be used to engender organizational adaptations. This sort of horizontal decision making by consensus model is often used in housing cooperatives.. other cooperatives and when running a non!profit or community organization.. <ideon =unda. and :elson . which makes producing a limited amount of products or services efficient and predictable. culture management and matri management.5. arguing along these lines. &t is used in order to encourage participation and help to empower people who normally e perience oppression in groups. +eckscher.it shifts focus from organizational structure to the organization's culture'.. &n the generic sense the term post bureaucratic is often used to describe a range of ideas developed since the 4789s that specifically contrast themselves with %eber's ideal type bureaucracy. "till other theorists are developing a resurgence of interest in comple ity theory and organizations. As a whole. . /iner et al. the organization is a network rather than a hierarchy. Functional structure Employees within the functional divisions of an organization tend to perform a specialized set of tasks. This leads to operational efficiencies within that group. rather than a fundamental shift away from bureaucracy. authority is still %eber's rational. amongst others. for instance the engineering department would be staffed only with software engineers. *or instance.3.. a functional organization is best suited as a producer of standardized goods and services at large volume and low cost. efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed $uickly and at low cost 3B5. +ierarchies still e ist. *or instance. and the organization is still rule bound. codification and enforcement of rules and regulations ! does not change in principle. 'harles +eckscher has developed an ideal type. +owever it could also lead to a lack of communication between the functional groups within an organization. Another smaller group of theorists have developed the theory of the -ost!2ureaucratic #rganization. 'oordination and specialization of tasks are centralized in a functional structure. Their study makes links to simple structures and improviseal learning. the post!bureaucratic organization. in which decisions are based on dialogue and consensus rather than authority and command. a small business could start making the components it re$uires for production of its products instead of procuring it from an e ternal organization. describes them as cleaned up bureaucracies 3. making the organization slow and infle ible.
Among these matri es. As the company grows. as well as in most governmental organizations all over the world. Cproduct aC customer service department.epublics and 'hina. /atri structure is amongst the purest of organizational structures. &t brings the best aspects of functional and projectized organizations. #ften. with more levels and departments. as well as make up for the weaknesses. the most prevalent structure in the past. The functional managers maintain control over their resources and project areas. Cproduct aC and Cproduct bC. it would result in bureaucracy. however. engineering and marketing departments. )ivisions can be categorized from different points of view. of functional and decentralized forms. Cproduct aC accounting. -ower is shared e$ually between the project manager and the functional managers. it becomes more comple and hierarchical. a simple lattice emulating order and regularity demonstrated in nature. A matri organization fre$uently uses teams of employees to accomplish work. Cproduct bC customer service department. which leads to an e panded structure. +owever. Strong$Pro'ect !atri"% A project manager is primarily responsible for the project. *unctional managers provide technical e pertise and assign resources as needed. !atri" structure The matri structure groups employees by both function and product. This structure can combine the best of both separate structures. relevant in former "oviet . there is no best format> implementation success always depends on organization's purpose and function. "hell <roup used to represent the typical bureaucracy( . Cproduct bC accounting department. Another e ample. university spin offs or small companies in general. Balance&$Functional !atri"% A project manager is assigned to oversee the project. Each division would have its own sales.Di isional structure Also called a Cproduct structureC. however. Cproduct bC sales department. &t is still. An e ample would be a company that produces two products. There can be made a distinction on geographical basis 0a D" division and an ED division1 or on productEservice basis 0different products for different customers( households or companies1. Dsing the matri structure. Organizational circle% (o ing bac# to flat The flat structure is common in enterprenerial start!ups. this is the most difficult system to maintain as the sharing power is delicate proposition. an automobile company with a divisional structure might have one division for "DFs. another division for subcompact cars. this company would organize functions within the company as follows( Cproduct aC sales department. Each division within a divisional structure contains all the necessary resources and functions within it. • • • Wea#$Functional !atri"% A project manager with only limited authority is assigned to oversee the cross! functional aspects of the project. the divisional structure groups each organizational function into a division. and another division for sedans. in order to take advantage of the strengths.
while team leaders in each store and each region are also a team. This structure can be seen as a comple form of the matri .irtual . over the last decade. 'reating a team spirit. :ot owning any factories. managers in network structures spend most of their time coordinating and controlling e ternal relations. &n essence. every one of the %hole *oods /arket stores. /otorola. usually by electronic means.3495 )ea( #ne of the newest organizational structures developed in the 69th century is team. . &ts design combines functional and product based divisions. more than two!thirds of which are based in low!cost Asian countries. such as -rocter H <amble. more fluid and even virtual. &n general. The failure of this structure became the main reason for the company restructuring into a matri .arger bureaucratic organizations can benefit from the fle ibility of teams as well. common in global companies. the structure of many companies has become flatter. leading to its incapacity to grow and develop further. Teams can be both horizontal and vertical. which aligns with its low!cost strategy34@5. "ome e perts also mention the multinational design 375.3445 %hile an organization is constituted as a set of people who synergize individual competencies to achieve newer dimensions. with employees reporting to two heads 385. the new network organizations contract out any business function. . competition and more demanding customers. and innovation problem in markets and industries 34G5.3465 *or e ample. +H/ is outsourcing its clothing to a network of G99 suppliers. Iero . is an autonomous profit centre composed of an average of 49 self!managed teams. act and react efficiently 34.et-or# Another modern structure is network.top!heavy and hierarchical. &t featured multiple levels of command and duplicate service companies e isting in different regions. "tarbucks is one of the numerous large organizations that successfully developed the matri structure supporting their focused strategy. it has become increasingly clear that through the forces of globalization. less hierarchical. and )aimler'hrysler are all among the companies that actively use teams to perform tasks. +H/ can be more fle ible than many other retailers in lowering its costs. the $uality of organizational structure revolves around the competencies of teams in totality. that can be done better or more cheaply. functions and geographic areas. The potential management opportunities offered by recent advances in comple networks theory have been demonstrated 34A5 including applications to product design and development 34B5. %hile business giants risk becoming too clumsy to proact (such as). as it maintains coordination among products.5. All this made "hell apprehensive to market changes 3G5. the company empowers employees to make their own decisions and train them to develop both hard and soft skills. *e&it+ . &n small businesses. the team structure can define the entire organization 375. Toyota and Dnilever. the largest natural!foods grocer in the D" developing a focused strategy. That makes "tarbucks one of the best at customer service.
. &t works in a network of e ternal alliances. the cost of reaching niche goods is falling dramatically. staffing. using the &nternet. The state of being coordinate$ harmonious ad ustment or interaction.-lanning facilitates co*ordination by integrating the various plans through mutual discussion. Co-ordination through Planning . * co*ordination between finance budget and purchases budget. * #. as by a coordinate con unction. a. e. Coordination Coordination is the act of coordinating. This means while the core of the organization can be small but still the company can operate globally be a market leader in its niche.g. integration. )o*ordination is the unification. Physiology. )o* ordination is the essence of management and is implicit and inherent in all functions of management. exchange of ideas. &armonious functioning of muscles or groups of muscles in the execution of movements. ma ing different people or things wor together for a goal or effect. %. Grammar. synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. !t is a hidden force which binds all the other functions of management. co*ordination is not a separate function of management because achieving of harmony between individuals efforts towards achievement of group goals is a key to success of management. According to Anderson. '. #. b. " manager can be compared to an orchestra conductor since both of them have to create rhythm and unity in the activities of group members. The act of coordinating. The linking of two syntactically e(ual units. and that is what made highly innovative. there are so many niche products that collectively they make a significant profit. Organizational coordination and control is taking a systematic approach to figuring out if you're doing what you wanted to be doing or not. organizing. because of the unlimited shelf space of the %eb. )o*ordination is an integral element or ingredient of all the managerial functions as discussed below. directing and controlling. That is why. Although none sell in huge numbers. !t's the part of planning after you've decided what you wanted to be doing.A special form of boundaryless organization is virtual. +anagement seeks to achieve co*ordination through its basic functions of planning.
.%. instructions / guidance to the subordinates is served only when there is a harmony between superiors / subordinates. !n fact when a manager groups and assigns various activities to subordinates.The purpose of giving orders..+anager ensures that there should be co*ordination between actual performance / standard performance to achieve organizational goals. Co-ordination through Staffing . Co-ordination through Organizing . of personnel in various positions with right type of education and skills are taken which will ensure right men on the right ob. and when he creates department's co* ordination uppermost in his mind.+ooney considers co*ordination as the very essence of organizing. . Co-ordination through Directing . 0. Co-ordination through Controlling . '." manager should bear in mind that the right no.
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