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Organizational structure:

Any operating organization should have its own structure in order to operate efficiently. For an organization, the organizational structure is a hierarchy of people and its functions. The organizational structure of an organization tells you the character of an organization and the values it believes in. Therefore, when you do business with an organization or getting into a new job in an organization, it is always a great idea to get to know and understand their organizational structure. Depending on the organizational values and the nature of the business, organizations tend to adopt one of the following structures for management purposes. Although the organization follows a particular structure, there can be departments and teams following some other organizational structure in exceptional cases. Sometimes, some organizations may follow a combination of the following organizational structures as well.

Organizational Structure Types:


Following are the types of organizational structures that can be observed in the modern business organizations. Functional Structure The organization is divided into segments based on the functions when managing. This allows the organization to enhance the efficiencies of these functional groups. As an example, take a software company. Software engineers will only staff the entire software development department. This way, management of this functional group becomes easy and effective. Functional structures appear to be successful in large organization that produces high volumes of products at low costs. The low cost can be achieved by such companies due to the efficiencies within functional groups. In addition to such advantages, there can be disadvantage from an organizational perspective if the communication between the functional groups is not effective. In this case, organization may find it difficult to achieve some organizational objectives at the end.

Divisional Structure These types of organizations divide the functional areas of the organization to divisions. Each division is equipped with its own resources in order to function independently. There can be many bases to define divisions. Divisions can be defined based on the geographical basis, products / services basis, or any other measurement. As an example, take a company such as General Electrics. It can have microwave division, turbine division, etc., and these divisions have their own marketing teams, finance teams etc. In that sense, each division can be considered as a micro-company with the main organization.

Matrix Structure When it comes to matrix structure, the organization places the employees based on the function and the product. The matrix structure gives the best of the both worlds of functional and divisional structures. In this type of an organization, the company uses teams to complete tasks. The teams are formed based on the functions they belong to (ex: software engineers) and product they involved in (ex: Project A).This way, there are many teams in this organization such as software engineers of project A, software engineers of project B, QA engineers of project A, etc.

DEPARTMENTALIZATION Definition: Horizontal Differentiation of task or activity into discrete segments is called Departmentalization. It also refers to grouping activities in different departments; we can also call it as division of work. Basics of Departmentalization or means of departmentalization: The means of departmentalization can be used by organizer in constructing an organization structure; some of them are as below: 1. Departmentalization by function: Activities can be grouped according to function to peruse economic scales & placing employee in different department as their capability & knowledge for E.G. Marketing department, H.R department, I.T department etc. Functional departments can be used in all types of organization. 2. Departmentalization by product: Some large organization has to adopt this approach. It is possible that one organization manufacturers many other products, so, there should be different departments for each product so as to be specialized. For E.G. Godrej company have many products like Fridge, Shaving cream, etc. 3. Departmentalization by customer: All people have different types of needs, so accordingly there should be different department, for e.g. there is different departments in bank for sanctioning loans because there are different people some of them would take car loan or Home loan so, there should different departments in bank for all types of needs. 4. Departmentalization by region: Large organization has to follow this mean for convenience. For e.g. one company is carrying out business activity in all country so there should be different department geographically like South region, East region we can take e.g. of Indian Railways. 5. Departmentalization by time: It is not possible that only one department will carry on business activity the whole day, there is need of different shift for e.g. Night Shift & morning shift etc. it is called departmentalization by time. 6. Departmentalization by process: Certain products have to be passed from different department for being ready, for e.g. a cloth needs to be pass from different machines in order to be ready in furnished cloth.

LEADERSHIP
Definition: Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. This definition is similar to Northouse's (2007, p3) definition Leadership is a process whereby an individual influences a group of individuals to achieve a common goal. Leadership Qualities: In understanding responsible business behavior, the starting point remains the leadership qualities that are in the domain of personal attitudes and beliefs. These are the deep seated personal qualities that change and develop only slowly over time. Management skills stand in contrast to leadership qualities in that they can be taught and developed over the short term. They comprise specific aspects of management practice such as stakeholder dialogue and building partnerships. The reflexive abilities identified through this research represent a combination of leadership qualities and management skills. They can be described as the key competencies required to integrate social and environmental considerations into core business decision making. They comprise: Systemic thinking Embracing diversity and managing risk Balancing global and local perspectives Meaningful dialogue and developing a new language Emotional awareness.

The Two Most Important Keys to Effective Leadership According to a study by the Hay Group, a global management consultancy, there are 75 key components of employee satisfaction (Lamb, McKee, 2004). They found that: o Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization. o Effective communication by leadership in three critical areas was the key to winning organizational trust and confidence: 1. Helping employees understand the company's overall business strategy. 2. Helping employees understand how they contribute to achieving key business objectives. 3. Sharing information with employees on both how the company is doing and how an employee's own division is doing relative to strategic business objectives.

So in a nutshell you must be trustworthy and you have to be able to communicate a vision of where the organization needs to go.