International Organizational Structure Essay
9 Question: What are the pros and cons associated with various organization structure used by international firms?
Answer:
Answer: A hierarchical business structure is a traditional approach to organizing a business where emphasis is placed on top-down reporting relationships. A typical organizational chart outlines reporting relationships between employees and their supervisors, as well as functional interaction between employees that operate on the same level within the business.
1. Line Organizational Structure: Line organization is the simplest and the oldest type of organization. It is also known as scalar organization or military type of organization. In the words of J.M. Lundy, “It is characterized by direct lines of authority flowing
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On account of many functions and complexities it is very difficult for a single individual to control all the matters effectively.
The executive may not be expert in all aspects of managerial activities. The burden of responsibilities on the shoulders of the manager can crush him under the heavy workload.
2. Staff or Functional Authority Organizational Structure: Functional organizational structure is best for smaller companies or those that focus on a single product or service. Not designed to change quickly, functional structure works well in a stable environment where your business strategies are less inclined to need changes or updating. “Functional structures are the most common type of structural design and have evolved from the concept of high specialization, high control framework of manufacturing organization turned towards high efficient,” reports Practical Management website.
Structure:
Functional organizations contain specialized units that report to a single authority, usually called top management. Referred to as functional units or areas, these specialized units contain personnel with various but related skills grouped by similarities. Each functional unit handles one aspect of the product or service provided: information technology, marketing, development, research, etc. Top management is responsible for coordinating the efforts of each unit and meshing them together into a cohesive
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