The Importance of a Good Organizational Structure. The major characteristics of a boundary less organization are as follows: i. Warren Truss Advantages And Disadvantages Advantages Of Warren Truss. Coordinates assorted authoritative assignments. Various O/S are accessible in open source, for example, Unix/Linux. iv. Types of Organisation Structure With Merits and Demerits. (ii) The company can meet the demands of various regions more effectively. List of Advantages of a Flat Organizational Structure 1. In traditional organizations, functional departments create horizontal boundaries which stifle interaction between functions, product lines, and units. Follow the below steps to create a ii. i. SBU structure makes the task of planning and control by the corporate office more manageable. They offer day courses, evening courses and correspondence courses to meet the requirements of different types of students. 2022 Mar 17 [cited 2023 Jan 18]. The divisional structure may be based on product or geographical territory. The different organisational structures described above have their own advantages and disadvantages. However, the boundary less organizations should not be treated as panacea for all structural ills because they have their own drawbacks which are follows: i. It may be the wave of the future for organisations to capitalize on certain types of ventures or projects. Mechanistic and Organic Structure. Entrepreneurial Structure (Simple Structure): 4. 1. Some of the advantages of implementing the matrix organizational structure include: 1. WebWin Win! WebAdvantages of Organisation Structure: Merits of having a well-designed organisation structure are as follows: 1. Such an organizational structure is (ii) It allows giving balanced weightage to the basic functions on which the survival of a firm depends. The advantages of functional structure are as under: (i) It is easier to organise departments based on functions and sub-functions. The benefits of structure based on customers are as follows: (i) Customer departmentation can focus on the special needs of different kinds of customers. Each product line or product group gets concentrated attention. iv. Functional structure is, perhaps, most widely used in medium and large organizations with limited number of products. But to coordinate their functioning, certain essential services such as Corporate Planning, Finance, Legal and Research & Development are organised at the headquarters. i. Organizations in the camps were ranged from commanders to the camp officers, and the prisoners. Further, in large organizations, the basic organization structure may be supported by other forms for performing various activities like team-based organization, virtual organization, and boundary less organization. Thus, each functional staff has two bosseshis administrative head and his project manager. Acts as a point of view through which individual can see their association and its condition. vi. g. They are frequently responsible for acquiring any new training they might need. Organizing a company in this way has inherent advantages and disadvantages. This structure serves the needs of the situation faced and is flexible in nature. Creating a Simple Static Webpage. Therefore, some people tend to call it T-form (technology-based) organization. It may take the form of combining product and geographical divisions or functional and divisional structures, operating in tandem. Data structure usage provides convenience while retrieving the data from storage device. In the boundary less organization, vertical boundaries are removed through flattening of organizational hierarchy. WebAdvantages of Organisation Structure: Merits of having a well-designed organisation structure are as follows: 1. Each division has a number of branches at different places covered by the division concerned. It also highlights the various roles and responsibilities. The concentration camps were the prisoners worst nightmare, involving death, hard labor, and Introduction In todays globalized world business and management is developing dramatically around the world and most people always want to achieve higher goals in various ways. In my paper I am writing about the Drug Enforcement Administration and the importance of this agency and the difference it has made within our nation.to know this agency is dedicated to putting an end to drugs in America. Product is an important basis of departmentation because it creates product divisions each of which could be considered as a viable profit centre for accountability purposes. (2019, March 7). According to Burns and Stalker, Organic structure is one that is characterised by high degree of decentralisation and flexibility and under which individuals are more likely to work in a group setting rather than alone. In an organic structure, the organisational members communicate across all levels of the organisation to obtain information. Copyright 10. Status and rank are minimised. Rights and obligations of each position are precisely defined and assigned. The relationships are not rigid; they are collaborative and redefined through interaction. The nature of the organisational structure depends on a number of factors like the size of the enterprise, objectives of the enterprise, nature of the business, marketing characteristics, social factors, etc. Disadvantages of Operating System : Here, we will spread the light on restriction (cons) of working frameworks. Divisional structure has some advantages: ii. WebThere are several advantages of the regional divisional structure. An organisation structure shows the authority and responsibility relationships between the various positions in the organisation by showing who reports to whom. Thus, one can see marketing, materials management, production, finance and accounting, personnel and maintenance departments in the functional design of a company engaged in manufacturing. Matrix Structure 6. Matrix structure has been evolved to overcome the limitations of traditional organization structures. Recommendations for Improving an Organizations Structure. It is highly informal and the coordination of tasks is accomplished by direct supervision. (vii) Functional specialisation restricts development of generalists or managers with all-round capabilities. In the present era of globalisation, strategic alliances and organization-customer-supplier links have become significant sources for developing competitive advantage. Sharply focuses on accountability for performance. x@B Some of the common types of organisational structure are given below: The widely prevailing organisational structure found in respect of very small enterprises is a simple one. What Are The Example Of Decentralized Organization? An organisations growth makes structure complex. Utilization of approaches and the achievement of the targets gotten to be less complex. iii. Prohibited Content 3. Definitive structure chooses how the occupations, drive and obligations are consigned, controlled, and encouraged, and how information streams between the different degrees of the board. Apart from basic and secondary functions, departments are also created for supporting activities to take the advantages of specialisation and to support the basic and secondary activities. uncluttered, natural adj. The project staff is separate from and independent of the functional departments. Assigns undertakings and obligations related with singular employments. Therefore, he must coordinate the instructions received from two or even more bosses. All replies. vi. The matrix structure has the following advantages: i. Functional structure is created by grouping the activities on the basis of functions required for implementing the strategy. It is a temporary structure designed under the following situations: (i) The assignment presents a unique, infrequent and unfamiliar challenge to the business firm. WebDefinitions of simple adjective having few parts; not complex or complicated or involved a simple problem simple mechanisms a simple design a simple substance Synonyms: easy posing no difficulty; requiring little effort plain not Departmentation by territory is commonly found among enterprises having business spread over a vast geographical area. The basic or major functions are those which are essential for the strategy and their operations contribute to organizational efficiency. The two traditional bases are product and territory. Divides work to be done in explicit occupations and dept. v. It tends to encourage overspecialisation, narrowing viewpoints of key personnel and limit the development of general managers. During his assignment to a project, he works under the coordinative command of the project manager and he may be called upon by his permanent superior to perform certain services needed in the project. This structure is suitable to firms operating in a single or related business and if they continue to grow in that area, they can be successful by following this structure. (iv) There will also be problems in providing centralised services to various departments which are located in different regions. Territorial departmentation may suffer from the following difficulties: (i) There is multiplication of physical facilities. Create and disperse departmental progression stream charts to everyone so that the bosses and their commitments are clearly caught on by everyone. Later, many organizations have moved from these bases to create divisions on the basis of strategic business units. If teams are not created properly, there may be chaos in the organization. It enables the company to cater to the needs of the different regions more effectively. In India, many companies have organised their businesses on the concept of SBU. The matrix structure, which is a combination of structures, has, therefore, become popular. A boundary less organization, the term coined by Jack Welch, former chairman of GE (USA), seeks to eliminate vertical and horizontal boundaries in the organization as well as the boundaries between the organization and its customers and suppliers. The activities or functions of all these departments are coordinated by the chief executive of the organization. Each regional office has its own set of functional departments and operates under the strategic policies and guidelines established by corporate management. For example, GEC was earlier having nine product groups and forty-eight divisions which were reorganised into forty- three strategic business units, many of which crossed group, division, and profit centre lines. It Is Cost Efficient As mentioned, in this organizational structure, there are fewer (or no) manager layers If the firm decides to add some new business, the basic question is how to add it because it may mean adding additional functional structure to the firm as the new business cannot easily be absorbed by the old structure. Highly responsive to environmental changes, iv. For instance, line organisation is a kind of mechanistic structure. It is essential for the employees to adjust well in the organization culture for them to deliver their level best. It does not encourage development of future managers. It does not allow employees participation in decision making. The structure of an organisation is generally shown on an organisation chart or a job-task pyramid. The work culture gives an identity to the organization. It is a set of planned relationships between groups of related functions and between physical factors and personnel required for the achievement of organisational goals. However, with advances in information technology, the network structure is gaining popularity. Each product division maintains its separate facilities and personnel. For example, Bootstrap is one of the popular free open source framework you can use to create static webpages. This is appropriate specially when each product is relatively complex and large amount of capital is required for each product. The merits of project structure are as under: (i) Project organisation concentrates on completion of a complex project or assignment. When making beyond any doubt your organization is well organized, a couple of steps must be taken after: When it comes to advancing the structure of a company it is basic to communicate the proper stream of information to everyone inside the organization. Cross-hierarchical teams which include top executives, middle managers, supervisors, and operative employees adopt participative decision making. When it is used, the organization is departmentalized on the basis of functions. Network structure is created around a central organisation that relies on other organisations to perform manufacturing, distribution, financing and other crucial business functions on a contract basis. It requires decision making through the levels of organization and flattens out the vertical appearance of a hierarchy. It has neither central office nor organization chart; it has no hierarchy, no vertical Integration.. Such structure is challenging, where it involves the knowledge of roles, responsibilities, work priorities and reporting to multiple bosses. Matrix structure is essentially a violation of unity of command and, therefore, whole classical concepts related to the principle of unity of command are violated. Computer networks are susceptible to attack from network hackers, viruses, and other types of mischiefs either for making money or just for fun. It also helps in reducing transportation and distribution costs. Expert Answer. It facilitates specialised performance of various functions. For this purpose, all the functions required for strategy implementation are classified into basic, secondary, and supporting functions according to their nature and importance. For instance, a big automobile servicing enterprise may organise its departments as follows heavy vehicle servicing division, car servicing division, and scooter servicing division. Since the project manager is wholly responsible for project results, he places more emphasis on efficient control, better customer relations, and uses his initiative and dynamism for the successful completion of project. (v) It has been found to fit a number of widely-varying situations such as product development, installation of a new plant, etc. iv. The simple structure becomes inadequate as the business grows. iv. This process often delays important decisions or prevents them from being made. An advantage of unitary government are that it is a single and decisive legislative. In a divisional structure, each division is semi-autonomous and has its own resources and facilities. ii. Each division regulates the LIC branches in its territory and each branch has separate departments for operations such as new policies, collection of premium, adjustment of claims and administration. This structure presents increased problems of top management control. iv. (iii) There may be lack of understanding between different departments. 3. This may lead to decrease in profits even, when there is increase in sales. Determines the administrator and degree to which jobs, force and duties are designated. Market-oriented long-range growth-oriented strategies can be planned and implemented. Most loved Kind to Skin Cleansing Wipes Kind to Skin Micellar Cleansing Water Kind to Skin Protecting Light Moisturizer SPF 15 Choose Kindness This would include the project managers and the subject matter experts. Entrepreneurial Structure (Simple Structure) 2. It may sometimes cause fragmentation and duplication of functions. A virtual organisation is a temporary network between a number of companies that come together to accomplish a specific venture. Special knowledge and experience contribute to the common goals of the concern. Product based structure is followed by giant organisations having multiple product lines. (ii) Lack of prescribed organisational processes, lack of clearly defined responsibility, lack of communication lines and measurement yardsticks make the job of a project manager often more challenging. iii. Type # 1. For example, marketing department may be classified and grouped into advertising sales, market research, and so on. Under this, each major product or product line is organised as a separate division. Separate strategic and operational control. They may compete with each other in certain areas. It requires more persons with general management abilities. vi. e. They prepare their own budgets and coordinate their work with other departments. Greater emphasis to the need of the customers may lead to less than optimum use of space, equipment and specialised personnel. If both these types of companies put their efforts jointly to undertake any project, their combined strengths could lead to much better results than what individual companies could have achieved separately. And the territories served by the firm have their unique problems. Simple says.. natural beauty comes from goodness Proud to be a globally certified PETA Cruelty-Free skincare brand that is kind to skin, the planet and animals too! It shows the authority and responsibility relationships between various positions in the organisation. They, and no others outside the team, take responsibility for the quality of their products or services. Why Is Organizational Structure Important? Entrepreneurial structure is quite simple in nature (that is why it is also called as simple structure) and is suitable for small organizations in which the entrepreneurs also work as chief executives. Advantage: Specialization. Divisions may grow too large impairing managerial efficiency. It helps to maintain the power and prestige of the major functions. The SBU structure groups similar products, markets and/or technologies into homogeneous groups in order to achieve synergies. This essay wont pass a plagiarism check! v. Enhances development of general managerial talent. For example a large company having business throughout India may departmentalise its business by the major geographical regions (Example Southern India, Northern India, Western India, Eastern India and Central India). Personnel are drawn from their respective functional departments. Arranging the structure guarantees there are sufficient human resources with the proper aptitudes to achieve the companys objectives, and ensures that duties are clearly characterized. It enlivens graduation and inventive thinking. A structure depends upon the associations objectives and strategy. though there is no bar on small companies to create such organisations. Each regional office has independent functional departments to realise its objectives. If divisions did not exist, the organization will not know which places are profitable and which are making a loss. (n.d.). Generally, small scale units (SSUs) or small firms produce single or very narrow product line in which, owner makes almost all decisions. Activities related to a function are grouped in a single unit with a view to give a well-defined direction to the whole group. It helps in concentrating on the special requirements of the customers of each region. Loyalty to the concern and obedience to superiors is highly insisted upon. Organizational structure is critical for any developing company to supply direction and clarity on particular human resource issues, such as managerial authority. It shows many organizational overlaps not only in terms of command system but also in terms of whole organizational processes and behaviour. Geographical or Territory Based Structure 11. ii. iii. But in project structure high degree of uncertainty and insecurity is inevitable as the projects are for only specific period of time. i. Workflow program will offer help to set up the correct way a archive must take after in arrange for that archive to be utilized viably, and a workflow computer program can report any break downs inside the workflow. Well, we do. These networks may include Internet, extranet, and intranet. Clear accountability, ii. Although the prisoners faced chaos and destruction in the concentration camps, the camps themselves were relatively organized. ii. The problems emerge because of the following reasons: i. Product structure can also help your business: Product organisational structure does have certain disadvantages, including being difficult to scale and Besides, the individual himself appraises his performance, known as self-appraisal, which is used along with 360-degree appraisal to arrive at the conclusion about the individuals performance. The activities of the individuals and the groups will become more rational, stable and predictable. First, team-based organization requires a work culture that is quite different from traditional hierarchy-based organization. Disclaimer 8. These teams collectively share the responsibility of decision outcomes as against individual responsibility in traditional organizations. 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