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0 Organizational structure of Airstream


Airstream uses a simple Functional structure. Owners are on top and, general manager and
executive chef reports to owners. General manger is responsible for front of house staff and
bar. Executive chef is responsible for staff in the back house.

Ownership
Airstream is a partnership business between three friends as well as accountants. Owners are
responsible for the business finances and also take care of the books. They are also the
ultimate decision makers and are accountable for the general direction of the business.

General Manager
There are two mangers for Airstream. The general manager of Airstream is responsible for the
day-to-day operations of the business, including hiring, training and overseeing the staff,
making sure that the restaurant is maintained in proper operating condition and ensuring that
things run smoothly when the restaurant is open. They also are responsible for totalling up the
daily receipts, making sure that the restaurant adheres to all legal requirements and
communicating with the restaurant owner

Front of House
At the operations level, Airstream holds three areas namely, dining, bar and kitchen. The
front-of-house staff is responsible for the restaurants dining area, including setting up
service, waiting on customers and interacting with the kitchen staff.

Back House
The executive or head chef is responsible for back-of-house operations. This includes hiring
and training kitchen staff, creating menu items, sourcing and purchasing foods and helping
determine the prices the restaurant should place on its meals.

2.0 Different organizational systems


Systems approach
The System approach views the organization as a unified , purposeful system composed of
interrelated parts. This way the manager can look at the organization as a whole or part of the
larger outside environment. Activity of any part affects all other parts of the organization. A
system can be biological,physical or social. It forces managers to view their organization as
part of a whole. It encourages managers to focus on better communication and cooperation
within the organization. It makes managers acutely aware that good internal management of
the organization may not be enough to ensure survival. It forces managers to be aware of how
the environment affects specific parts of the organization.

Mechanoistic Structure
Mechanistic structures are those that resemble a bureaucracy. These structures are highly
formalized and centralized. Communication tends to follow formal channels and employees
are given specific job descriptions delineating their roles and responsibilities. Mechanistic
organizations are often rigid and resist change, making them unsuitable for innovativeness
and taking quick action. These forms have the downside of inhibiting entrepreneurial action
and discouraging the use of individual initiative on the part of employees. Not only do
mechanistic structures have disadvantages for innovativeness, but they also limit individual
autonomy and self-determination, which will likely lead to lower levels of intrinsic
motivation on the job. Despite these downsides, however, mechanistic structures have
advantages when the environment is more stable. The main advantage of a mechanistic
structure is its efficiency. Therefore, in organizations that are trying to maximize efficiency
and minimize costs, mechanistic structures provide advantages..

Human relations approach


human relations pertains to motivating people in organisations in order to develop teamwork
which effectively fulfils their needs and leads to achieving oganisational goals. The biggest
advantage of a human relations approach is that businesses and customers are more often
better equipped to handle a person to person interaction when there is an issue. The biggest
disadvantage of this approach is that people are not always people friendly, and they make
mistakes and errors that could cause major issues.

3.0 Comparison of structures


Company: Village cinemas
Village cinemas use divisional structure. The divisions are based on the location. Every
village cinema in Melbourne has a manger on top and manager reports to Regional Manager
of Melbourne. Regional Manger reports to the board of directors.

Functional vs. Divisional structure


Functional structure works best for organizations that only produce a few products, for
example Airstream. One of its main advantages is that employees within functional
departments are highly specialized and thus are very skilled and knowledgeable. Another
advantage is that with functional structure, it's easy to accomplish functional goals specific to
certain departments. The main strength of the divisional structure is that it is very adaptable
to fast changes and to differences between products, geographic locations or customers. Also,
it involves collaboration between various functions, which leads to innovation. There are two
main weaknesses in the functional organizational structure: it responds very slowly to change,
and it may take too long for decisions to be made because of the hierarchy of various
managers. Among other weaknesses is the lack of coordination between departments and lack
of innovation. The lack of specialization, along with integration and standardization
difficulties, is the primary disadvantages of the divisional structure.
Since Airstream is a small scale business functional structure is best matched at the same time
Village cinema is a large corporation and divisional structure based on geographic areas best
suits its functions.