Name of the student: SWAPNIL JAIN

Year and Section: 5TH YR- ‘B’

Class Roll No. 23
Assignment no: 01
Date of submission: 01/03/2020
Topic: Illustrate the organizational structure, detail out the
Organizational chart of the office you are working with. Also
explain the role and responsibility of each department.

With reference to reading sent, the following observations are noted -

Organizational Structure is critical both for a company and its employees. People should think
very carefully about the organizational structure of the companies for which they work or of
companies for which they intend to work.
A company’s organizational realignment to pursue new business objectives, to create new products or
services, or to target new consumer markets is referred to as Strategic Renewal.

Every company organizes itself differently, so there is no absolute right and no absolute
wrong way to design an organization.
Another key term that is familiar in the designing an organization is what we call a
Hierarchy of Authority.

Types Of Organizational Structures

The most common organizational types may be classified as follows:
 The Functional Structure
 The Divisional Structure
 The Matrix Structure, and
 The Horizontally Linked Structure

Different organizational structures may benefit different portions of the organization in both
subtle and profound ways
Dimensions of Organizational Structure There is the Vertical Dimension, in which the
organization is considered to be either a tall or a flat structure; and there is the Horizontal
Dimension, in which an organization is considered to be either wide or narrow.
The Vertical Dimension of Organizational Structure The Vertical Dimension of the
Organizational Structure basically lays out who is in charge of whom and who makes the
decisions inside an organization. It is the hierarchy of authority within a company, and
herein we find something that we call the Span of Control, which plays an especially
important role in our discussion of the Functional Structure.
Span of Control is a very simple concept: It refers to the number of people who can report to a
single manager inside of the hierarchy. However, the optimal Span of Control is very difficult to
quantify, because it varies based upon the type of organization and the work being executed; the
nature of the work, the level of Formalization, the skills of the people, the business culture, and the
management style of the organization all influence the optimal Span of Control within any given
company.

Span of Control (Tall vs. Flat Organizations)

Span of Control is simply the number of people who can report to a single manager inside
of the hierarchy.
We can more easily refer to these as Tall Organizations and Flat Organizations.

Because there are so many levels, managers in a Tall Organization tend to have a Narrow
Span of Control, which means there are no more than five or six people reporting to any
individual manager or supervisor.
In the Flat Organizational Structure, because there are fewer levels, managers tend to have
a Wide Span of Control, so there could be as many as ten or twelve people reporting to any
individual manager or supervisor, depending upon the tasks involved.
This illustration displays Comparison of Span of Control in Tall and Flat Structures 8
As an organizational structure flattens out, the Span of Control increases. As the organizational
structure becomes taller, the Span of Control decreases.

Vertical Complexity: Contrasting Spans of Control in Functional Structures

Most prevalent types of structures are discuss with the pros and cons of each. The first
structure, which is more in line with the Vertical Dimension, is known as the Functional
Structure.
Functional Structures create a high degree of stability and efficiency within an organization,
but this structure type has its disadvantages, as well.

The Functional Structure is by far the most popular organizational structure in the business
world — probably 65% to 75% of companies use the Functional Structure, because it’s
basic and it makes sense. The Functional Structure is how most organizations align
themselves into various departments (for example, Production Department, Sales
Department, R&D, Accounting etc).
Advantages and Disadvantages of the Functional Approach
the Functional Structure follows the Centralized Decision Making model, such that decision
making in the Functional Structure occurs at the top. This can be advantageous in the
sense that there is more upper management control in the organization. It can also help
individuals in their career paths, inasmuch as motivated employees move upward within the
organization to assume decision-making positions.
Functional Structures foster stability and efficiency. Everybody knows what his job is, and
as a group they all use similar processes, so it’s a very effective way of operating. When
you’re working with this type of structure, you can also take advantage of economies of
scale.
The Functional Structure has its disadvantages, as well. Perhaps the most critical disadvantage is
that of poor communication and conflict between departments. A great deal of literature on
Functional Structure is focused on the effect of what we call Siloing. Siloing is when an organization
has very thick walls, so that the various departments are entirely isolated from one another, and
members of those departments don’t think in terms of company-wide teamwork. They only attend
the business of their specific department.

Communication and collaboration between the departments is difficult, at best, and this is
not a good organizational situation. Also, customers can become frustrated by the lack of
responsiveness from organizations that are functionally structured — the scenario of
customer complaints “passed off” from one department to another is familiar to most of us.
Another disadvantage of the Functional Structure is that employees tend to identify themselves
with their respective departments but not so much with the organization as a whole. Although the
Functional Structure is the most popular and pervasive in the business world, companies should
understand that the siloing effect is potentially detrimental to individual employees, departments,
and the organization as a whole.

The Horizontal Dimension of Organizational Structure

It basically addresses the division and assignment of tasks and functions across various
departments within the organization. Herein we examine the second of the Organizational
Structure types, the Divisional Structure.
Divisional Structures are concerned with placing groups of people with similar abilities where they
are needed all across the organization.

The Divisional Structure is not so much based on the grouping of people according to their
skill sets as it is concerned with placing groups of people with similar abilities where they
are needed all across the organization.
As you can see in Figure, each product line has its own Functional Organization with Production,
Sales, R&D and Accounting teams, permitting each product line to function independently of the
other product lines. Yet each product line is a component of a larger organization.

EXAMPLE- Boeing Company. Boeing has three divisions within its organization: the Commercial
Airline division; the Military Aircraft division; and a fledgling new division or product group called
Private Aviation. Each of these divisions is a functional organization unto itself, each with its own
R&D and Production and Sales and Accounting teams; yet, each is only a component of a much
larger organization called Boeing Company.
Advantages and Disadvantages of the Division Structure

The advantage of the Divisional Structure lies mainly in the coordination of functions within the
separate divisions. Behind any single product group or market group or geographic group is one
person who is in charge of all the functions within his division. This improves the ability of a
company to respond to customer issues, because there is more accountability — everyone in a
given division reports to a single individual at the top of the division, rather than to a mere
supervisor of a department. This arrangement also helps to develop managerial skills and executive
skills, because people working in a Divisional Structure are exposed to all of the other functions,
unlike the siloing effect seen in a straight Functional Structure. The disadvantage of the Divisional
Structure lies in redundant effort and resources due to multiple departments performing essentially
the same tasks across the organization, which spells inefficiency on many levels. Within the
Divisional Structure there is also a reduction in specialization and occupational skills, not to mention
a high probability of in-house competition between the various divisions of the company.

Matrix Structure

Matrix Structures incorporate elements of both Functional and Divisional structures, yet the Matrix
operates in its own unique fashion.
Advantages and Disadvantages of the Matrix Structure

The advantage of the Matrix Structure is that it’s extremely efficient, particularly when
resources are scarce. This organizational structure is a very good way to ensure that
expensive specialists are kept busy all the time and that they are using their skills on the
most critical portions of a project for the good of the organization. It also allows an
organization to start projects quickly, because there’s no need to hire staff from outside —
the staff is readily available, and they are already acquainted with the pace, so projects can
be launched very quickly.
The Matrix Structure also helps develop cross-functional skills in employees, as they are
dealing with many different types of projects, working with and learning from many other
participants with a diversity of skill sets. The Matrix also increases employee involvement
because the project managers seldom possess all the necessary technical and functional
knowledge. They rely on the expertise of those “borrowed” staffers to make more decisions
at a technical level.
The main disadvantage of the Matrix Structure, certainly, is that many employees become very
frustrated and confused with the chain-of command in these hastily-assembled support teams.

Horizontally Linked Structure

A Horizontally Linked Structure groups people along the value chain of processes that
produce, market and service the firm’s offering.

Under the Horizontally Linked Structure, an organization groups its people along the value
chain of activities and processes that produce, market, deliver, and service the firm’s
offerings.

ORGANIZATIONAL CHART OF THE OFFICE

Type- Functional Structure.