Advantages Of Organizational Structure

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Recommended: Structure/design of organizations

NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Management Theory and Practice
Model Answer

ANSWER 1.
Introduction to Organisation Structure
An organization structure can be defined as the analytical arrangement of tasks, duties and roles and responsibilities with the aim to achieve the predetermined objectives of an organization. It also helps to coordinate among the individuals in the organization by deciding who will work under whom. This is interpersonal relation between individuals and the jobs assigned to them. Organisation structure can be classified into two categories:
1. Centralized structure
2. Decentralized structure
In centralized structure, all the decisions are in hands of the top level management …show more content…

As E-commerce company involves large geographical background and market hence implementing divisional organization structure can help them run the company smoothly and efficiently. Though the cost of applying this structure may cost them a bit high. As with all organizational structure types, the divisional structure offers distinct advantages and disadvantages. Generally speaking, divisions work best for companies with wide variance in product offerings or regions of geographic operation. The divisional structure can be useful because it affords the company greater operational flexibility. In addition, the failure of one division does not directly threaten the other divisions. In the multidivisional structure, subsidiaries benefit from the use of the brand and capital of the parent company. Some disadvantages of this structure include operational inefficiencies from separating specialized functions—for example, finance personnel in one division do not communicate with those in another division. Disadvantages of the multidivisional structure can include increased accounting and tax …show more content…

Staffers report to a functional manager who can help with skills and help prioritize and review work, and to a product line manager who sets direction on product offerings by the company. This structure has some advantages such as resources can be used efficiently, since experts and equipment can be shared across projects. Products and projects are formally coordinated across functional departments. Information flows both across and up through the organization. Employees are in contact with many people, which helps with sharing of information and can speed the decision

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