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BBPP1103 January 2012 Assignment Sample Answer
BBPP1103 January 2012 Assignment Sample Answer
BBPP1103 January 2012 Assignment Sample Answer
SAMPLE
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Table of contents
Page
1.0 INTRODUCTION..………………………………………………. 3
References
INTRODUCTION
In the new centuries, many organizations are designed as hierarchies, with each
manager reporting to one and only one manager at the next higher level. Within the
hierarchical structure, there is substantial variation in the number of levels and in the set of
activities grouped together. The several groupings are pertaining to organization such as
functional, product, matrix, geography and customer. For instance, other organizations may
apply a matrix structure in which each low-level manager reports to two or more superiors.
In the 21st century, parts of organizations are not purely employed hierarchical
structures, many management are still prone to practice the existence of the flat community
structure within their organizations (Butler Jr., J.K., 1986, p.5). For functional hierarchy,
departments were distributed into styling, engineering, manufacturing, research, public
relations, and personnel division (Sloan 1963, p. 190).
2.0 TYPES OF ORGANISATIONAL STRUCTURE
Manager
A geographic structure is typically found in companies with operations in large region, such
as national or international organizations. Each location will have its own internal structure and
management, allowing them to conduct business activities in certain geographical locations. The
advantage of this structure is most beneficial in international locations, where companies need help
in transitioning their operations to specific international markets. In addition the organization can
organize effective and efficient to the requirements of the specific market and advantage to market
to different countries.
Other than that, the organization can reduce of costs management to allocate any
organization to entire location. The disadvantage for the geographical structure is the organization
difficult to make centralized of decision-making. This difficult will be arising in coordinating between
department as the departments in geographic structure cause of location far from each others.
Manager must give responsibility to another authority to take actions and improve organization
rather than giving a directive from the head of organizations.
Figure 2.1 - Sourced by : http://www.cosway.com.my/
COSWAY (M) Sdn Bhd is a Malaysian-based is multi-level network marketing. They began
their operations in December 1979. It is a simple concept of distributing quality product and unique
network marketing system. Concept for the business, to allocate the hundreds of COSWAY’s
stockiest centre throughout the country which ensure that there will always be a centre close to
where you work or live via a network. Today, it has grown to become one of Asia’s, Brazil’s and
México’s largest network marketing companies. The consumer product related home care, personal
care, food, auto care, healthcare and fashion.
Figure 1.2 - Sourced by: http://www.dolcera.com/wiki/index.php?title=Samsung#Geographical_Presence
According figure 2.2, Samsung Electronics has a total 196 subsidiaries around the world
including production subsidiaries, sales subsidiaries, distribution subsidiaries and research
laboratories. Samsung Electronics produce the product of consumer electronics, semiconductor,
telecommunication, digital media and digital convergence technologies. In this organization,
management is the ability to react effective and efficient within the scope of requirement and more
important when the products and services that are produced are marketed to different countries.
Samsung global network also includes one global headquarters in Korea and nine regional
headquarters in North America, Europe, China, Southeast Asia, Southwest Asia, Latin America, CIS,
Middle East, and Africa.
Figure 2.3 - Sourced by: http://renchin.com/?tag=7-eleven
7-Eleven operating as a franchise, is the world's largest operator, franchisor and licensor of
convenience stores. Private labels for 7-Eleven are slurpee and big gulp. In addition, 7-Eleven would
come to own or operate several brands of food and concepts. Concept for the business, operating in
24 hours per day and easy for customer to buy any food and beverages located in any places. The
main objectives for the organization are to fulfill the needs of customers.
2.3 Matrix Structure:
As above illustration figure 3.0, the matrix structure defined as a product manager (A
until D) can report more than two different of managers. The type of this structure combines
two or more types of departmentalization at the same time. For example, in this organization,
product manager “A” has to produce the sample product which is ordered from design vice
president. When the product has been produce, product manager “A” must report the progress
of the product to three of vice president from manufacturing, marketing and controller to
evaluate cost of the product and customer satisfied.
Advantage for matrix structure, the organization can manage effective and efficiency
in a large scale production. Furthermore, organizations can achieves synchronization
necessary to meet dual demands from customer, easy to make decisions and frequent changes
in unstable environment. Apart from that, matrix structure provides opportunity for both
functional and product skill development and exceptional for medium size organization with
multiple product to produce.
Based on figure 3.1, this is the chart of organization department of town country
planning in peninsular Malaysia, Ministry of Housing and Local Government. The objective
for this department requires the setting up of a Regional Planning Committee (RPC) for a
region in an area consisting of two or more States. Example for matrix structure determined in
regional’s planning committee secretariat department and projects of national priority
department, those lower-level management have to report more than one supervisor or
manager.
Figure 3.2 - Sourced by: http://www.chemlab.com.my/organization.asp
According figure 3.3, PERUNDING DMA SDN BHD was incorporated on 1st August
1995 in Kuala Lumpur, and the objective for the organizations is a chartered quantity
surveyors consultant firm. The matrix structure for this organization interconnected with low
level management. As a professional surveyor consultancy firm, most of surveyor related to
each other to make right decision to preparation tender report and tenders document. Human
relations skill needed to build long term relationships and increase the number of clients who
value the services we provide to their business and their success.
Figure 3.4 - Sourced by: http://www.snia.org/about/organization/staff/org_chart
The missions for this organization to association with local industry to developing and
achieve standards, technologies, and educational services to authorize organizations in the
management of information. Via looking at the figure 3.4, even though they implement the
departmentalization by function, in certain cases, they are also applying matrix structure as
well. For instance, by referring to business services director which is indicate in orange box,
the membership manager is not only able to report to his director, he can report directly as
well to the executive director. Besides, the Marketing Programs and Design Manager also can
have an interconnection with the Online Programs and Website Manager
2.4 Product Structure:
Company
ABC
The intention for product structure is to focus of producing a product and services.
Based on figure 4, the organizations have to produce three different products with three
different structure organizations. Employees in different units that is responsible to
accomplish the duties given. In such an arrangement, the top manager of the product group
typically has considerable autonomy over the operation.
The advantage of this type of structure is that the personnel in the group can focus on
the particular needs of their product line and become experts in its development, production,
and distribution. A disadvantage, at least in terms of larger organizations, is the duplication of
resources. Each product group requires most of the functional areas such as finance,
marketing, production, and other functions. The top leadership of the organization must
decide how much redundancy it can afford.
Figure 4.1 – Sourced by: http://www.berjaya.com/corporate-structure.html
Tan Sri Dato' Seri Vincent Tan Chee Yioun as a owner The Berjaya Corporation
Group, with a total employee strength of 16,000. In figure 4.1, the Group is a diversity in a
consumer product, financial services, hotels and recreation development, property investment
development, gaming and lottery development, food and beverages, technology development
and investment holdings. By the nature of their businesses, Berjaya encouraged its staff to
share their skills and talents in accomplish organization objectives. Beneficial for Berjaya
Corporation Berhad organization allows to expand their experience and expertise, related to
the overall activity of the product and services.
Figure 4.2 – Sourced by: http://thinking-brands.blogspot.com/2010/09/nestle-brand-portfolio.html
Family branding or corporate branding in word of “Nestle” is attached all the brands in
all categories. Figure 4.2 illustrates, every food product meets the needs of customer demands.
In this era, customer more likely to buy the product based on branding name and not
compromise on price. Advantages for the product, if customers constantly to use the nutrition
products for their child, customer will continuously used the next level product to make them
satisfy if the company has a well managed product portfolio.
Figure 4.3 - Sourced by: http://www.terusmaju.com.my/chart.html
Teras Maju Services Sdn Bhd actively involved in the transportation bus industry.
Main service for this organization, to provide transportation as a factory buses for their
clients. Refers illustration figure 4.3, specialist employees develop that are well trained to
provide specific services for buses maintenance. Advantage for the organization, no cost rises
to hire external expertise to service the buses maintenance.
Figure 4.4 - Sourced by: http://www.dolcera.com/wiki/index.php?title=Samsung#Geographical_Presence
Depending on the types of businesses, some companies able covers certain region,
meanwhile the others cover all areas of market demand. For the companies that apply
geographical structure, most likely they will determine the regions either by cardinal
directions or by name of the states. Cardinal point of directions such north, south, east and
west are normally being applied by major players. It is much easier for them to monitor and
track performance and market demand analysis instead of by product or services itself.
Matrix structure presents complex design of hierarchy whereby the authority and
responsibility of manager is bigger than the functional structure. Those companies that apply
matrix structure are more fragile and flexible in terms of reporting matters. Even though, staff
works in the different department, they are able to cross report to another department. This
structure is normally applied within production department by the maintenance people. For
those who applied this structure are able to create huge network within multidisciplinary
department. However, management of this company has to ensure that their staffs are self
driven to carry out major tasks and deal with the multi cross-sectional network.
2961 words
References
BASF PETRONAS Chemicals Sdn Bhd (2008). [Online] Available: Error! Hyperlink reference
not valid.. n.d.
Butler Jr., J.K. (1986). A global view of informal organization. Academy of Management
Journal, 51, 3, 39-43.
Lim, M., G. Griffiths, and S. Sambrook. (2010). Organizational structure for the twenty-first
century. Presented at the annual meeting of The Institute for Operations Research and The
Management Sciences, Austin.
Sloan, Alfred P., Jr. (1963). My Years with General Motors. Doubleday, NewY ork.