There are four types of organisational structures which are Functional, Product, Geographic and Customer type. These are all important as each structure can help a business structure in they own way. For example; Function can help businesses structure themselves into different sectors such as production and many more different sectors. Whereas Product structure can help a business structure by separating their product divisions such as separating IPhone from its accessories by cable wire, main plug, headphones and manual book with box. Also Geographical structure can help a business as well into structuring in different areas for example; Apple retail stores in West Yorkshire, North Yorkshire, London, Wales and many more areas. Finally, the …show more content…
The chart shows that each different function is managed from the top.
Advantage of this structure is specialisation which shows that each department focuses on their own work, responsibilities and duties. Also another advantage is accountability, showing that each manager is responsible for their section and would be aware of their and employees working in that particular departments roles. This type of structure allows for more specialisation.
On the other hand, disadvantage for functional structure is that each department may not communicate and interact with another functional group which can lead to a drop in flexibility and in the innovation in other words they would have closed communication that can lead to lack of focus in their work. Also in this type of structure there would a gap between the top and the bottom management. Furthermore, disadvantage can also be that each department can become impervious in order to change where managements can take
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An advantage of this structure includes serving local communities better by operating to their demands. Also another advantage is that in this structure there would be effective communication between the stores and customers. Also between the work force there would be a strong collaborative at each region and have positive competition between different departments. On the other hand, a disadvantage of geographical structure is the possible conflict between the local and chief management. Another disadvantage of this structure is potential duplication of resources, functions and jobs.
Product Organisational Structures:
This structure outlines a business which is organised in separate divisions where it focuses on different products and services. Also this type of structure in a business functions as an independent unit. In this structure employees are allocated into independent divisions according to the products or services they produce or the geographical area they work and serve in and the type of customers they interact and deal
This is an example of flat organisational structure as there is no middle management. The organisational structure of Macmillan Is split up into 6 different sections. The first and most important sector is the chief executive whose job it is to make the big decisions and to manage the major operations and resources of the company and finally acting as the main communicating point between board of directors and corporate operations, and then there is a board of trustees that the chief executive rely on to help them with the important decisions.
The organizational structure can be seen as an outline of what branch of a company is to carry out
There is a possibility that maybe if one department is not available in a company it can impact badly on the whole business. So, without having them the business cannot move in a right direction and in an effective
Do you know the importance of having a hierarchy structure within any given work space? Without structure there would be no clear line of communication between workers. Having a structure in a workplace establishes communication skills, defuses conflicts, and also provides awareness of leaders who are in charge of you.
Organization structure – The whole activies are divided in the department and the responsibility and hirenchy of each department is well defined. However Senior management needs to be more focused on Strategic Initiative rather than Daily Operations .For this it is Important to develop a second Rung of Leadership. Human Resource Plan – The Human resourse plant is defined for all the employee and the system for the recruiting , training & development, benefits and reward is well established.
Organizational set up has to be favourable to support new product development. Foremost companies must allocate funds for research and development, the conventional way is the percent of sales technique. Others chose to allow employees dedicate a certain amount of work time on new product development. Companies next have to organize the process of development.
Ford motor company 's organizational structure is based on business requirements under the condition of different markets around the world. Enterprise organization structure defines the components and their interaction system configuration. In the case of ford, the organization structure is directly related to the status of the global auto industry. Ford 's international operations also decided against competition and the key structure components required for market risk. In this respect, as the second largest U.S. automakers ford is to show the effectiveness of its organisational structure to support continuous business growth and high performance.
QUESTION 1. Discuss three main organizational forms used in forming a business. The three main organizational forms used in forming a business are Sole Proprietorship, Partnership, and Corporation. (Titman, Keown, & Martin 12 ed., 2014).
The different type of structures (1) Functional – each portion of the organisation is grouped according to its purpose. (2) Matrix - ‘’ creates project teams that cut across traditional functional departments, instead of highlighting the role or status of individuals, it gathers together a team of specialists with the objective of completing a task or a project successfully ‘’ . (3) Divisional – It is the grouping of workers on the basis of products being produced, followed by the functional structure. There are two types of divisional structure , (a) Product structure (b) Process structure (4) Geographical – It is the grouping of workers on the basis of regions, followed by the functional structure and , (5) Hierarchical structure which has been adopted by Ritz Carlton. It shows the different levels of hierarchy, span of control and chain of command.
High degree of responsiveness of between various functional head and CEO. 2. Inter department decision making is smooth i.e. the functional heads can make decision based on other functions smoothly. 3. Centralized controlling system.