Types of organizational structure

Types of organizational buildingWhat is the description of an organization? Is a social unit of mass that is behaved and managed to extend to a need or to pursue incarnate goals. All organizations micturate a prudence construction that de marchesines kinships surrounded by the opposite activities and the members, and subdivides and assigns intents, responsibilities, and authority to strain out varied tasks. Organizations argon open musical arrangements they affect and ar affect by their environment.A rail line organization is an individual(a)istic or sort out of mickle that collaborate to achieve indisputable commercial goals. Some clientele organizations argon create to earn income for give birthers. Other business organizations, c completelyed nonprofits, be organise for public purposes. These businesses often raise m unityy and utilize different imaginativenesss to append or support public programs.The bound business organization refers to how a business is structured. The business organization is specify in the bylaws when the business is stochastic variableed with the name and contact information of those who own and run the company with their roles delimit. The bylaws sound out the purpose of the organization and what it does. A sole proprietorship does not admit bylaws beca purpose superstar person owns and eminentys the business.What is an organizational structure?Is the typic eithery gradable create verb in ally text of lines of authority, conferences, undecomposed and duties of an organisation. Organisational structure determines how the roles, power and responsibilities are delegate, keepled, and coordinated, and how information flows between the distinguishable trains of management. A structure depends on the organisations objectives and strategy. In a centralized structure, the nip stage of management has most of the finish reservation power and has plastered hold over departments and div isions. In a decentralized structure, the decision make power is distributed and the departments and divisions whitethorn ware different degrees of independence. A company much(prenominal)(prenominal) as Proctor and Gamble that sells multiple reapings may organize their structure so that meetings are divided according to distributively product and depending on geographic area as well.Organizational structure is a system apply to define a hierarchy within an organization. It identifies each job, its constituent and where it explanations to within the organization. This structure is matureed to establish how an organization operates and assists an organization in obtaining its goals to hold for future growth. The structure is illustrated using an organizational chart. at that place are two subjects of Organizational structure.Formal Structure which is the organisation of business that hierarchical the nature. For a company, formal structure send away be found on its organisational chart that includes the staff label and their official job titles. It is easy to actualize and to the point is unlike the bulky drawn out definitions while reading, whizz do forgets the previous sentence after moving to the next. The other defines the term in its crudest form. A formal organisation structure shows a recognisable chain of necessitate, it also has many levels of management. This makes communication s obtain and decision making harder to implement.Informal structure Informal structure populates of the social structure of an organisation. It includes the embodied gloss, behaviour interactions and social connections which come in within an organisation. Many organisation pay back a formal, written structure, and a much than(prenominal)(prenominal) than daily, cultural structure. A respectable advantage for the informal structure is, it evolves constantly. And it merchantman easily respond pronto in a changing situation. An informal stru cture is in truth much to a greater extent relaxed, with very few levels of management. This makes communication much easier between levels and decisions and made faster. centralization DecentralizationCentralization is said to be a process where the constriction of decision making is in a few hands. All the chief(prenominal) decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, Centralization is the authoritative and consistent reservation of authority at central points in the organization.For deterrent geekface Company A is run by Stephen Clarkson B. Delgado. Company A is organism controlled by a centralized or a top level superior this is an typeface of an centralized organization.The implication of centralization stick out be backlog of decision making power at top level.Reservation of operating authority with the middle level jitneys.Reservation of operation at lower lev el at the directions of the top levelDecentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority in contain by the top management for taking major decisions and framing policies concerning the firm concern. Rest of the authority may be deputed to the middle level and lower level of management. Decentralization is the distributing power and decision making among different people, departments, or locations within an organization.For example, a national retail chain may allow its store managers to make decisions on the merchandise that volition be carried in their particular stores.Some benefits decentralization would includedecisions are made by those who expect the most knowledge about local conditionsgreater managerial input in decision- making has a desirable motivational gear upmanagers attain to a greater extent control over resultsBusiness StructuresAs a government has differ ent types of organization, Organisations have a formal structure which is the authority that the organisation is organised by those with responsibility for managing the organisation. They create the formal structures that modify the organisation to meet its stated objectives. Often these formal structures will be constitute out on paper in the form of organisational charts.However, in the course of epoch an informal structure develops in most organisations which is found on the reality of day-to-day interactions between the members of the organisation. This informal structure may be different from that which is focalise out on paper.Informal structures develop beca go forpeople find novel ways of doing things which they find easier and save them timepatterns of interaction are shaped by friendship groups and other relationshipspeople forget what the formal structures areIt is easier to travel with informal structures.Sometimes the informal structure may conflict with the for mal one. Where this is the case the organisation may become less efficient at meeting its stated objectives. However, in some cases the informal structure may prove to be more efficient at meeting organisational objectives because the formal structure was badly set out. on that point are two types of Organizational structuresTall StructuresTall organizational structure is one which has many levels of hierarchy. In these organizations, thither are normally many managers, and each manager has a small sweep up of control they are in charge of solitary(prenominal) a small group of people. Tall structures tend to be more complicated and complex, and may be slower to respond to market changes than organizations where managers have a swelledr span of control. Tall structure has many levels of management and its inspection. Long chain of affirmation is one of it. It means, running from the top of an organisation. The advantage of tall structure is exonerate management structure, sh ockable span of control, the form of each layer will be mop up and distinct, and a clear progression.Pros and Cons of tall structureThe pros of tall structures lie in clarity and managerial control. The narrow-minded span of control allows for close supervision of employees. Tall structures provide a clear, distinct layer with obvious lines of responsibility and control and a clear promotion structure. Challenges begin when a structure gets too tall. Communication begins to take too long to travel through all the levels. These communication problems hamper decision-making and hinder progress. tied(p) Structures savorless structures have fewer management levels, with each level unequivocal a broad area or group. Flat organizations focus on empowering employees kind of than adhering to the chain of command. By encouraging autonomy and self-direction, immediately structures tackle to tap into employees creative talents and to solve problems by collaboration.Pros and cons of flat structureFlat organizations offer more opportunities for employees to exceed while promoting the vaingloriousr business vision. That is, in that respect are more people at the top of each level. For flat structures to work, transcenders must luck research and information instead of billboard it. If they can manage to be open, tolerant and even vulnerable, leaders excel in this environment. Flatter structures are flexible and better able to conciliate to changes. Faster communication makes for quicker decisions, but managers may end up with a heavier workload. Instead of the military style of tall structures, flat organizations die hard toward a more democratic style. The heavy managerial workload and large human action of employees reporting to each boss sometimes results in mental confusion over roles. Bosses must be group leaders who generate ideas and tending others make decisions. When too many people report to a bingle manager, his job becomes im likely. Employees often worry that others manipulate the system behind their backs by reporting to the boss in a flat organization, that means more employees distrusting high levels of authority. plot of Tall and Flat StructureTall structurehttp//www.emeraldinsight.com/content_images/ figure of speech/0291020503007.png plot 1 Tall structureBy http//www.emeraldinsight.com/content_images/fig/0291020503007.pngFlat structurehttp//lh5.googleusercontent.com/-UYB474BaaCY/Te0Hxo459jI/AAAAAAAAE1k/3gIGD7S0614/Flat-Organisation-Structure-Advantages-Disadvantages.jpgDiagram 2 Flat structureBy http//lh5.googleusercontent.com/-UYB474BaaCY/Te0Hxo459jI/AAAAAAAAE1k/3gIGD7S0614/Flat-Organisation-Structure-Advantages-Disadvantages.jpgSpan of controlSpan of control is the term now used more collectively in business management, particularly human resource management. Span of control refers to the number of subordinates a supervisor has. In a business of more than one person, unless the business has equal partners, the n there are managers and subordinates. Subordinates are proletarians controlled by the manager.A hierarchy describes the structure of the management of the business, from the top of the company the managing director, through to the shop floor worker, who reports to their foreman, in a manufacturing business.The hierarchy of a business is usually best understood by drawing an organisation chart showing which levels of management and employees report to whom.An example of a hierarchy is shown in the diagram belowhttp//www.tutor2u.net/business/gcse/organisation_public_sector_clip_image002.jpgDiagram 3 Span of controlCreated by http//www.tutor2u.net/business/gcse/organisation_span_of_control.htmThe advantages of a narrow span of control areA narrow span of control allows a manager to communicate quickly with the employees under them and control them more easilyFeedback of ideas from the workers will be more exploitiveIt requires a higher level of management skill to control a greater number of employees, so there is less management skill requiredAn example of a wide span of control is shown in the diagram to the righthttp//www.tutor2u.net/business/gcse/organisation_public_sector_clip_image004.gifDiagram 4 Wide span of controlBy www.tutor2u.net, (n.d)There are also different types of organizational structure ware StructuresAn organizational structure is a framework in which companies outline the different responsibilities in their company. A product-based organizational structure separates the company by products, activities, learns or geography. This allows a company to have a particular focus on specific items in its business operations. Organizational structure refers to the different hierarchies or levels in a company. An organizational structure appears as a series of boxes, vertical and horizontal lines. The boxes wager various titles within the organization, and the vertical lines represent to whom that position reports. Horizontal lines show which emp loyees are on the equal level. The expression of an organization structure is usually pyramidal because there are fewer executive-level positions at the top of the company.Advantages and disadvantages harvest-tide-based structures allow companies to remain flexible in the business environment. This allows the company to add or remove structure sections as necessary. However, it can prohibit companies from achieving company-wide goals since each unit operates on its own.product-business-organization-structure.jpg (516-344)Diagram 5 Product structureBy http//the-business-plan.com/wp-content/uploads/product-business-organization-structure.jpggeographical structureOrganizational structure defines the hierarchy in which an organization will operate. There are many defined types of organizational structure, but some organizations may create their own, or use a combination of several structures to efficiently run business operations. Geographic organizational structure is used for organi zations that have mightinesss or business units in different geographic locations. Geographical structure is the firm organized into geographical units (regional, national, international) that report to a central headquarter which administers the core functions such as supplying and marketing.example-geographic-org-chart.jpg (600-159)Diagram 6 Geographical StructureBy http//thethrivingsmallbusiness.com/wp-content/uploads/2010/02/example-geographic-org-chart.jpgFunctionThe term organizational structure refers to how the people in an organization are sort and to whom they report. genius traditional way of organizing people is by function. Some viridity functions within an organization include production, marketing, human resources and accounting. The classic organizational structure where the employees are grouped hierarchically, managed through clear lines of authority, and report ultimately to one top person.AdvantagesSome advantages of a useable organization are that the line s of command are clear. Individuals specialize and departments tend to develop common knowledge crossways the group. There may be an advantage to individuals in that career paths can be fairly easily defined.DisadvantagesDisadvantages of the functional organization include short communication across groups and slow response to changes in the environment. Too much work may be referred upward due to the lack of decision making authority, and serious problems can ensue when groups develop a narrow perspective.http//thethrivingsmallbusiness.com/wp-content/uploads/2010/02/example-functional-org-chart-jpg.jpgDiagram 7 Function StructureBy http//thethrivingsmallbusiness.com/wp-content/uploads/2010/02/example-functional-org-chart-jpg.jpgMulti divisionalCompanies use organizational structures to characterize their hierarchical and reporting structures. The organizational structure shows the superior-subordinate equations in the organization. A multi-divisional organizational structure is used by large organizations. Here, the scale of operations is very large hence the number of employees is also very enormous. The company divides all of its strategic functions into departments. All these departments do their share of the allocated work, and all the work is later collated as the organizational tasks. According to the Human pick Management Guide, a multidivisional organizational structure consists of self-contained units that operate as their own separate entity. For example, Procter and Gamble owns multiple national brand names and creates a self-contained business model and organizational structure for each product. Each brand is given its own corporal identity operator, leadership and organizational design.AdvantagesA multidivisional organizational structure promotes motivation among group members because of the performance/ retaliate connection. This structure makes it easy for leadership in the organisation to maintain astute oversight and reward those who perform well. The service provided to customers meets their needs more suppressly because leadership and employees work more about with customers. There is also clear identity and purpose in this structure that increases team member loyalty, consignment and satisfaction.DisadvantagesA multidivisional organizational structure does have some disadvantages. The disadvantages deal this instant with external relationships. Although the department itself is very close and possesses a defined identity and purpose, communication between departments can be difficult. Conflict between departments is common due to competition and differences in values, systems and expectations. This structure also costs more to operate and manage because each division is considered its own entity.http//www.emeraldinsight.com/content_images/fig/0410130305001.pngDiagram 8 Multidivisional diagramBy http//www.emeraldinsight.comMatrixMatrix structure is defined as a type of management system in which workers report to more than one person, effectively having two or more supervisors at the same time. This can be illustrated by the example of a purport environment, where professionals with different types of expertise are brought together to work on a projects. They report to a number of managers of different projects, as well as to a functional supervisor. The idea is to share knowledge and personnel to increase effectiveness. The matrix structure is an organizational design that groups employees by both function and product. The organizational structure is very flat, and the structure of the matrix is differentiated into some(prenominal) functions are needed to accomplish certain goals. Each functional worker usually reports to the functional heads, but do not normally work directly under their supervision. Instead, the worker is controlled by the membership of a certain project, and each functional worker usually works under the supervision of a project manager. This way, each worke r has two superiors, who will jointly ensure the progress of the project. The functional head may be more interested in developing the most exiting products or technologies, whereas the project manager may be more concerned with keeping deadlines and controlling product costs.AdvantagesThe cross functional teams of a matrix structure reduce the functional barriers between departments, and increase the integration of functions.Matrix structures open up for communication, and may provide an opportunity for team members to learn from each other so distributing valuable knowledge askantly within the organization.The matrix structure makes it possible to assign specialized resources to projects when needed.DisadvantagesA matrix structure lacks the effectiveness of bureaucracy, and will potentially not work if the organization does not need to defend swiftly to changesThe flat hierarchy may be the cause of conflict, and different stakeholders may pursue entirely different goals.The g reat focus on integration between functional areas requires a great amount of lateral communication, and it may require great resources to get information distributed efficiently between team members.As said before, the use of a matrix structure seems more feasible for organizations operating in business environments characterized by change, desirability and uncertainty. This could e.g. be organizations operating in high-tech industries such as computation or telecommunicationhttp//thethrivingsmallbusiness.com/wp-content/uploads/2010/02/Example-Matrix-Organization-Chart-jpg.jpgDiagram 9 Matrix DiagramBy http//thethrivingsmallbusiness.com/wp-content/uploads/2010/02/Example-Matrix-Organization-Chart-jpg.jpgDefinition of CultureIs the values and behaviours that contribute to the unique social and mental environment of an organization. Organizational assimilation includes an organizations expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid. overly called corporate culture. Company culture is the personality of a company and defines what a company, from an employee perspective, is like to work for. Company culture includes the company accusation, values, ethics, expectations, goals, and work environment. Whether written as a flush statement, spoken or merely understood, corporate culture describes and governs the ways a companys owners and employees think, feel and act. Your own businesss culture may be based on beliefs spelled out in your mission statement. It could consist in part of a corporate symbol, like the rainbow-colored apple that symbolizes apple Computer. Whatever shape it takes, your corporate culture plays a big role in determining how well your business will do.There are four types of culturesPowerIs one based on the dominance of one or a small number of individuals within an organisation. They make the central decisions for the organisation. This sort of power culture may exist in a small business or part of a larger business. There are some organizations where the power remains in the hands of only few people and only they are authorized to take decisions. They are the ones who enjoy special privileges at the workplace. They are the most important people at the workplace and are the major decision makers. These individuals further delegate responsibilities to the other employees. In such a culture the subordinates have no option but to strictly go after their superiors instructions. The employees do not have the liberty to express their views or share their ideas on an open assembly and have to follow what their superior says. The managers in such a type of culture sometimes can be partial to someone or the other leading to major unrest among o thers.RoleExists in large hierarchical organisations in which individuals have clear roles (jobs) to perform which are closely specified. Individuals tend to work closely to their job description, and tend to follow the rules rather than to operate in a creative way. Role culture is a culture where every employee is delegated roles and responsibilities according to his specialization, educational qualification and interest to verbalize the best out of him. In such a culture employees go down what best they can do and willingly accept the challenge. each individual is accountable for something or the other and has to take ownership of the work assigned to him. Power comes with responsibility in such a work culture. choreExists when teams are formed to complete particular tasks. A distinct team culture develops, and because the team is empowered to make decisions, task cultures can be creative. Organizations where teams are formed to achieve the targets or solve critical problems f ollow the task culture. In such organizations individuals with common interests and specializations come together to form a team. There are generally four to five members in each team. In such a culture every team member has to contribute equally and accomplish tasks in the most modern way.PersonThere are certain organizations where the employees feel that they are more important than their organization. much(prenominal) organizations follow a culture known as person culture. In a person culture, individuals are more concerned about their own self rather than the organization. The organization in such a culture takes a back seat and eventually buzz offs. Employees on the button come to the office for the sake of money and never get attach to it. They are seldom loyal towards the management and never decide in favour of the organization. One should always remember that organization comes first and everything else later. There are certain organizations where the employees feel th at they are more important than their organization. Such organizations follow a culture known as person culture. In a person culture, individuals are more concerned about their own self rather than the organization. The organization in such a culture takes a back seat and eventually suffers. Employees just come to the office for the sake of money and never get attached to it. They are seldom loyal towards the management and never decide in favour of the organization. One should always remember that organization comes first and everything else later.Task 2 develop how the relationship between an organisations structure and culture can impact on the performance of the businessAll businesses have Business organization has structures and cultures that have been followed to apply great impact on the productivity of their business. These organizations could have use either a product structure, Multi-dimensional, Matrix structure etc. And have followed a power type culture or person type c ulture and so on. Each of these has its own effect and impact on their business. These structures and cultures play an important role of setting the definition of an company, setting their goals and how they could organize its members to meet their goalsAs The behaviours and beliefs characteristic of a workplace are its culture. The culture and structure of an organization affect one another. A structure appropriate to the organization helps to develop a healthy culture. In companies with rigid structures, communication tends to follow reporting lines. In companies with flatter structures, communication may occur more easily across departments. Studies have found a relationship between job satisfaction and organizational structure. Organizations with flatter structures may raise more feelings of self-actualization and create less anxiety in employees. Relationships with customers may suffer if departmental relationships cause the customer difficulty in getting problems addressed. M ulti-functional teams that can answer a customers questions and resolve issues have a positive effect on customer satisfaction. Organizational structure impacts the conquest of a companys projects. If project personnel also perform routine operational work, it may be difficult for them to focus on projects and meet schedules. If the flow of information across departments is difficult, it may affect ability to share resources effectively.Task 3 weigh at the factors associated with individual behaviour and discuss how they influence an individuals behaviour at work.Each individuals work has its own effects on organizations. There are many factors on how individual or group goals have touch on an organization. These goals could also be the life force of the performance both could be positive or negative depending on how the scenario goes. Either way all these factors are important as a single employees goals and ambition could lead any organization to success if in proper standing an d worked on accordingly.Collective goalsThese are goals that are collected or shared by individual to form a same goal coming from the same ideology. For instance a basketball teams belief in practicing and training other people with the game or making basketball more friendly to others, this could lead their team to complete objectives like win in an inter-basketball tournament, gaining new players and earning more money. Or to simply fulfil the need of its members to gather more players to gain more company and improve their basketball abilities. Within these goals there are many different types of goals as it is shownIdeological Goal, These are the goals or objective that has a connection with an individuals belief and values. These Goals usually are the rapture of what an individual have for example. An Archery clubs mission or ideological goal is to share to other people their own knowledge of archery.Formal Goals are goals set by an dominant individual, These goals are usual ly organizational based goals that is set by a higher supremacy. These goals move an organization on how that individual or owner wants his organizations to be.Shares personal goals are goals pursued when the individual members tick and collide with their own individual ideas as missions. These are the goals shared by all individuals of a group to form one centralized mission where they can all complete as a group.Controlled performanceEvery organization needs to take responsibility to its owners and other stakeholders for the achievement of its collective goals. These goals cannot simple move on its own and needs to be moulded gradation by step being controlled accordingly so that to ensure the success of their goals and missions. This ensures thatAll goals whether ideological, formal, or shared personal goals are understood by all membersThe necessary resources are secures and utilised in such a way that goals will be reached without undue risk, disruption or hookThey can tell whether, or to what extent they have reached their goals.This is why all organizations has a centralized management, to ensure that the employees who are working on these goals and mission carry out their individual tasks positively and with no mistake to avert negative backlashes and effects.