In this assignment I shall look at the theory of organisation structure of large
Companies and identifying the key features and the roles of managers plays in the
Success of organisational structure and discuss the four main types of organisational
Structure explain functional structure, Divisional structures, matrix structure and
formal structure, including the benefits and the limitation of the structure.
I shall define and distinguish the differences between the various types of structures
which mangers design for an organisation.
The understanding of organisation structures is really important to all employees in
the organisation , not just the managers and the management team of an
organisation. By getting the understanding of this concept of organisation structure
the employees should be able to understand how their individual behaviour
contribute towards the big pictures of the organisation.
Firstly Buchanan, D and Huczynski, A( 2001. P.p 447 ) organisation structure as a
prescribed system which mangers has put in place to delegate part of the
organisation duties to employees ,reporting the relationships that control the
effectives the duties giving to the employees and motivate the employees so the
they can collaborate to achieve an organisation objectives that are set by the
organisation to deliver. The mangers and management team uses this duties to
encourages the employees to work hard and extend good work relationships
between their colleagues in the organisation. This allows employees to cooperate
and work together as team to achieve organisational objectives of the company.
Divisional structure Schermerhorn , Jr, J.R,( 2004 p.g 273) argue that the
structure overlays the operational grouping which allows an organisation to
synchronize intergroup situation more effectively than the functional structure. This
structure allows a groups of employees to work together on the same project on the
same geographical area which contributes to customers satisfaction , this concept
consist of three main parts that is product, geographical and process structure.
Secondly, The benefit of these structure are as follows : the quality of the product
and customers services : These structure allows the organisation to concentrate on
a specific goods , service and have specific target of customers in the market. This
allows the organisation to focus on the division to generate high - quality of
products and high - quality of customer satisfaction.
Jones, G.R ,(2000 p.g 282) These structure clear connection between
performance and rewards : theses structure enable an organisation to evaluate
problem they are facing in the market and reward the performance of individual
divisions in the organisation , rewards employees from those division so as to
motivate other division to work hard as a result and the managers and these
rewards has been assign in a way that they can be monitored the progress closely .
This structure helps the managers to evaluate one department against another and
share the ideas among themselves and find possible solution the problem . The
limitation of this structure is as follows : this structure reduce economics of scale and
increase relatively cost of production and endeavour across division. Poor
communication develops in this structure which slow down production of goods and
service in this structure due to more managers and management team who
supervisor the progress of the work would co ordinate with the activities of the
organisation.
Thirdly Jones (2008, p.g208) and Rhodes (2005 p.g488) Matrix structure is
convoluted adjustment that organisation uses to restraint their activities resulting
in this structure which simultaneously based on two structures which is functional
structure and project structure where project structures becomes currently
working employees and the functional becomes members .The employees of this
structure normally have two bosses (functional boss and project boss). The benefit of
these structure are as follows :As Larson and Gobile (1987 as cited in Rhodes) it
facilitates rapid product development which allows the organisation to developed a
new product into the market quickly and the cost effectively is a major competitive
advantage to the organisation. This helps the organisation to gain strategic
advantage which is to place their product into the market quickly than its
competitors. It put up a team work among the employees that is it bring members
of functional and project team together to focus on the task giving to them by the
organisation which promote equal opportunities among the employees because
they work with people from different background.
The limitation about this structure is that the chain of command may be confused
the authority of the structure that is the structure is made up of two structures
which is functional and project team which require different bosses that can cause
conflict between the employees and the managers because they can not express
their individual contribution towards the task as they are normally change from one
department to another and this can cause stress which employees can not cope
with. Buchanan, D and Huczynski,(2001 pp. ) functional structure is group of
employees who has come together to produce goods and service for an organisation
because the employees share the same views , similar prospective in an organisation,
carry out a similar set of duties and use the same kind of skill to perform their an
organisational duties. In this type of organisation all the employees are expertise
which the organisation expected a high performance from the employees.
These are benefits governing these structure: learning: - is easier for employees
to learn from the other experiences. These structures help the employees improve
their knowledge and the abilities and thereby ameliorate individual and
organisation performance as whole. This structure creates teamwork among the
employees which contribute to the development of norms, values and group
connectedness which contribute to high performance levels of the organisation.
The limitation of functional structure are: co ordination: the organisation attract
difference forms of customers with different needs so employees find it so difficult
to satisfy these customers with only single of experience they got.
Finally Team approach (Daft 2000 p.g 324) defined it as group of people who has
come together to interact and coordinate their work to deliver the organisation
goal . This structure enables employees to work more flexible and responsive in
competitive market .This structure consist of two approach that is cross -functional
teams and permanent teams . The cross - functional teams are made up employees
from the several functional departments who are obligate to work as a meet and
resolve the organisation difficulties .The permanent teams is a group of employees
who has come together to perform formal duties for an organisation.
The benefit of these approach are as follows: (Daft 2000 p.g 325) and (Revision
Guru accessed on 19 February 2010) these helps the organisation to evoke
shortcoming s I the functional approach , it brings top - down approach into the
organisation. It allows the employees to conform customers request and the
environmental changes and speeds the decision making process because they do
not send the problem to the top hierarchy before decision take place. The limitation
of these are as follows : the employees may spend more time at meeting trying to
come to conclusion of the problem and co ordination time consumption. It may
cause decentralisation in the organisation due to the Senior department mangers
will feel isolated normally the senior department manager makes the decision .
In conclusion good organisation structure always assist the working
relationship between the employees among the various department in the
organisation and this may increase efficiency of the organisation. The structures set
up a target for the organisation to monitor the progress of the productivity of the
organisation . These structure support the command for coping with the order
made by customer and change of the condition of performing these duties. This
structure allows individuals to develop their potential skill which enable tem to
perform their duties and high adaptability and power to work as team.
