Functional Organization Case Study

Introduction:

Organizations are established in specific ways to obtain different objectives, and the structure of an organization can help or restrain its advance toward accomplishing these goals. Organizations of different sized and types can achieve higher sales and other profit adequately by identifying their requirements with the structure they use to operate.

Organizational structure indicates to how the work of employees and teams within an organization is coordinated. In order to obtain organizational goals, individual work needs to be coordinated and managed. Structure is an important instrument in obtaining coordination, as it appoints reporting relations (who reports to whom), designs formal communication channels, and portray how different actions of individuals are linked together.

Business performance in a Functional Organization without structure can be severely affected by the irregularity of the flow of communication over separate levels of the hierarchy making the organization slow to involve the new technology, the political status, the economy, cultural variations or social elements and legal problems. It generally has a narrow span of control which may cause injustice to certain groups and individuals. The level of influence an employee possesses will affect his output which may affect a group that may lead to affecting

In other words, formalized structures are the structures with lots of written rules and regulations. These structures control the workers actions using established regulations, and employees have little independence to make decisions on a case-by-case basis. Formal structures make employee actions expectable. At work whenever a problem appears, employees know to turn to a procedure manual. Hence, employees respond to problems in the same way across the organization, which leads to consistency of