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Organisational Structure and Culture
Definition
Organizational structure refers to the levels of management in a company. It mainly defines how job tasks are formerly divided, grouped and co-ordinated. The organizational structure of a company reflects its culture, management style and leader attitude which is adopted with the addition of the environment around in which it operates. It also determines how the roles, power and responsibilities are assigned, controlled and co-ordinated respectively, in-order to realize the flow of information between the different managerial levels. An organizational structure is important because it determines how the organization will be run in order to meet its aims and objectives, (Cunnee, 2008). He defines an organizational structure as the number of ways used in a business to set up division and specialization of labour focusing on maintaining co-ordination to achieve the same targets. An organisational structure may be flat or high and centralized or decentralized. In a centralized or small organization, the top layer of management has the power to make decisions for the company and has a tight control over the below divisions. In a decentralized or large organization, the decision making power is distributed to extent of the company and greater workload is divided and delegated downward. Some of the key elements which are required to design organizational structure are:
- Work specialization
- Departmentalization
- Chain of command
- Span of control
- Centralization and decentralization
- Formalization
Organisations structure can be organized in four different ways which are:
- By function (Operations, Marketing, Finance)
- By region ( Marketing manager in south, Marketing manag...
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...approach gives a single expanded and detailed framework to diagnose the problem and decide which tool or their combinations will be suitable to handle the problem. This approach helps in getting quick perception about the problem. Better planning is secured through it. The main problem of this approach is that it’s complicated as well as expensive to adopt.
- Contingency approach
This approach concerns only on the practical situations and circumstances and believes it to be the best way of managing. It requires vast knowledge on situational variables and external factors. The structure of organization must match the demand of its environment and technology. The leadership styles must be appropriately adopted according to the situational demands. It is mainly complex and has difficulty in empirical testing. It is termed as reactive rather than proactive.
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
Organizational structure is the linking of departments and jobs within an organization. The idea of self managing teams was a significant insight gained into organizational structure. Bolman and Deal state that self-directed teams typically produce better results and
Organizations are initially structured around tasks, and as the organization continues to grow, the structure within the organization takes on many characteristics. Not all structures are advantageous, especially if they are lacking in some areas. There is a relationship between structure and size of the organization that affect the centralization of the organization. At the highest levels, the personality of the chief executive may amend the organizations' structure. The structure within an organization helps define the roles and responsibilities among the members from each department and work group. The four general types of organization structure are functional, divisional, matrix, and project based. “Organizational structure is the skeleton of an organization” (Feigenbaum, 2013) and how these individuals relate to each another. Structure is a statement of the current affairs, not the ideas, intentions or improvement within an organization. When business leaders develop their initial plans for an organization, he or she looks at how to design a company and takes inventory of all the tasks, functions and goals of the business. The leader then develops groupings and ordering of job positions, departments, and human resources to effectively and efficiently perform these tasks. Technology, size, environment, strategy and goals affect an organizational structure and effects, whether they are categorized as mechanistic or organic.
Organizational culture is a reflective view of the inner workings of an organization. This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, duties, and communication processes. Organizational structure establishes the manner in which power and roles are coordinated and controlled amongst the varying levels of management. The structure of an organization is dependent upon their goals, objectives, and strategy. Determining organizational structure best suited for an organization is generally found within the six key elements of organizational structure and choosing those to implement those best suited for the organization. The six key elements include:
This type of organisational structure has many levels of management. The organisational structure has been structured according to its own function i.e. marketing, finance, human resources and sales. This is known as a functional organisation. The hierarchical organisational structure of Wednesbury IKEA is very similar to a tall organisation structure.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.
In modern days, organizational architecture plays a key role in order to allow companies to get success in the market. Organizational architecture, also known as organizational structure, defines as a structure that where the specific company whether works roles, decision making or responsibility are centralized, delegated or coordinated. The organizational structure also identify how the information from level to level within the company. IKEA is one of the international famous firms that designs and produces home furniture such as bed frames and desks. The company also is the leader in retailing furniture and has become the largest furniture retailer over the globe. Therefore the structure of a company is an important factor to achieve a rapidly growth. This paper aimed to describe the IKEA’s organizational architecture and provide analysis that whether any recommendations or changes have to make based on current information.
The Different Ways Organizations Can Be Structured and Operated There are four major ways a company - organization can be structured and operate. P.C.G (o) Ltd I would dare say that is structured and operates with the functional structure. In order to make it clear and understandable I am analyzing here below the four ways that organizations can structure and operate. We will observe that all four structures have there advantages and disadvantages. In order also to assist you understand better the differences of the four ways that organizations can be structured see in Page 4 & 5 Figures 1,2,3 which are the layout of the organization charts for each structure: 1.
Richard L.D considers that organisation was a clear goal, a well-designed structure and coordinating the activities of the system, social entities associated with the external environment. Along with the development of the economy, organisational culture's influence on employee behavior is the most used more and more big, in general, organisational culture is refers to the organisation in long-term survival and development for the organisation which is formed by the holdings of members and is said to follow the value of the system. Organisational structure refers to all members of the organisation to achieve organisational goals and the division of writing, the scope of duties, responsibilities, rights, etc formed by the structure of the system. Developing the ideas of Harrison , Handy describes four main type of organisational cultures: the power culture; Role culture and task culture, and the person culture.
Business structure is a critical factor to determine a company 's success or failure. Generally, larger organization has a more complex organizational structure. In the case of H&M, they had adopted matrix structure, one of the traditional organizational structure, into their business. As shown in figure 1, range of functional groups is listed horizontally across the table and on the other is product/task with a manager taking control of each. The functional structure is divided
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
The concept of organizational culture is one of the most debated topics for researchers and theorists. There is no one accepted definition of culture. People even said that it is hard to define culture and even more change it. It is considered a complex part of an organization although many have believed that culture influences employee behavior and organizational effectiveness (Kilmann, Saxton, & Serpa 1985; Marcoulides & Heck, 1993; Schein, 1985a, 1990).
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.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.