Essay On Organizational Structure

2018 Words5 Pages

1 Design of Effective Organization Structure One of the most important elements to consider when designing an organization is the type of organization structure that will be implemented. Organization structure is very important in any organization because it determines how the information will flow from one individual or department to another. The organizational design helps arrange the tasks and job relationships of the organization. When designing Birdhouse we considered all the organizational structures and their advantages and disadvantages. There are three types of organization structures that any organization can operate under. They are functional structure, divisional “product”, and matrix structure. The functional structure groups together individuals that perform the same task or who hold similar positions such as finance, human resources, marketing, etc. It is highly hierarchical structure. Each department is managed by a leader, who possesses in depth knowledge and experience on that type of function. Some advantages are, since organization group their activities by function they capture the benefits that result from the division of labor and specialization. The individuals that are grouped together according to similarities can communicate with share information with each other more easily. Also it makes it easier for individuals to learn from one another’s experiences. Some drawbacks would be that if the company wants to expand its products or services their functions can begin to experience difficulties because they might not be experts in this new area. Other disadvantages can include poor communication, slow response... ... middle of paper ... ... will always follow up on important communications. However, we only do it face to face, email and phone calls are not encouraged to be used for delivering messages. 9 Birdhouse’s employees are divided to multiple groups. Each group's leader will be responsibly communicating with his own team. For any further discussion, these leaders have to figure at weekly meetings with the management department. Last but not least, our manager will always communicate with employees, and communicate good and bad news. We believe in honesty. It is always better to hurt people with the truth than lie to them under any circumstance. Words will be more credible when it comes to good news. Also, we don’t want our employees to keep making the same mistakes over and over. It does not only affect the business, but also cause troubles for themselves.

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