Functional Strategy 9. Environmental Scanning 10. Business Strategy By Implement Programs and putting a program in place makes a strategy action orientated. It may involve restructuring and changing the company’s internal culture or beginning a new research effort. An advantage of implementing program in connection with the corporation’s goals and objectives is that the corporation can outsource a percentage of manufacturing therefore increase efficiency
The ability to analyse the emerging opportunities for the business is availed by making use of effective marketing activities. Moreover, the marketing activities also help the firms in analysing the competitors because it is the important phase of promoting a brand. Effective marketing strategies not only focuses on meeting the needs of the consumers but it also consider the competitors because these two are the main aspects of achieving organisational goals (Budhwar & Debrah,
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.
Functional Structure – It is a structure in which an organisation is divided into different departments or segments based on the functions they perform. In other words, functional structure groups various positions into functional units on the basis of similarity between expertise, skill and work activities. It is set up so that each area of the organisation is clubbed according to its function. It is best suited for small firms in which each department relies on the talent and knowledge of its workers working in it. Each functional unit has a separate set of duties and responsibilities.
Introduction There are a number of organisational structures within businesses. One of the most common organisational structures is the functional structure of business. This report aims to depict main departments within the functional structure of businesses and deliberate on their roles in a company. The activities in a company are usually divided into key functional areas which deal with various facets of keeping the business profitable and efficient in achieving the business goals. None of the functions can operate in isolation, and the activities of one department affect the others.
1. Functional strategies can be defined as goal-directed plans and actions of an organizations functions areas. However, there are several functional areas that organizations needs which are: operation strategy, marketing strategy, human resources strategy, production strategy, research and development strategy, financial strategy, and organization strategy. These strategies are used to help an organization achieve their goals and objectives in an effective approach. 2.
Globalization has increased the level of cross border activities. It is expanding rapidly and this makes it important for MNCs to manage its human resource management. HR is responsible to analyze and manage the human resource needs of organization in such a way that it can achieve its strategic goals (Hellriegel, Jackson, Slocum and Staude, 2009).HRM is a planned approach to make people perform effectively. It creates an open, flexible and caring management style so that staff can give their best (Michael C. C. SZE1, 995). HRM has to adapt to local conditions the most as compared to other management functions because it is highly dependent on local labour market.
Here, I have illustrated the complete functional structure, (1) Top level management: - Top level management involves the group of people involved in managing company directives and objectives. (a) CEO:- Chief executive officer, which is the highest post in the company, who takes care about the different locations and branches of any
One of the reasons for this popularity is the assumption that HRM is a source for competitive advantage and will influence the organisational results and performance in a positive direction. In an environment where HR is an important source of competitive advantage, it is also the one that contributes to sustained competitive advantage through facilitating the development of competencies that are firm specific. Strategic Human Resource Management (SHRM) concerns with the creation of a linkage between the overall strategic aims of business and the HR strategy and implementation. The article takes a closer look at the presumed relationship between HRM and business performance. The main idea behind HRM-performance presumption is that HR practices affect employees’ attitudes and behaviour, which further affects the operational performance, such as productivity, quality and innovation, which in turn have a positive effect on an organization’s overall market for its products and subsequently its financial results.
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.