Maintenance of economical central services is sometimes very difficult. In fact, most of the companies in information technology sector which are engaged in development of software for different purposes and for different customer segments have adopted this approach. For example, Century Textiles has separate divisions for textiles, cement, and shipping. The word simple has many other senses as All replies. The management groups the activities on this basis to cater to the requirements of clearly defined customer groups. Leads to competitive spirit within the organisation. Additionally, learn about the advantages, disadvantages, merits and demerits of few types of organisation structure. For instance, if an undertaking is in production line, the dominant element in its organisation chart would be manufacturing and assembling. (iv) It ensures effective utilisation of personnel in different departments. Functional structure is based on specialisation of functions. Greater emphasis to the need of the customers may lead to less than optimum use of space, equipment and specialised personnel. Separate strategic and operational control. (ii) There may be problems of integration between various regional offices. WebSimple describes something as being easy to understand or do, as being plain or not elaborate, or as being ordinary or common. This is the reason why more and more organizations have put emphasis on creating self-managing teams. Recently, in telecommunication sector in India, many virtual organizations have been created to provide different services. An Organization structure helps in: Ineffectively structured organizations discover that critical deadlines are not met since there were not adequate human resources in each department to achieve all parts of a given assignment, or because it was not clear whose obligation the project was. (Root, 2017)An organization ought to continuously take a great structure since a well-structured organization is able to create way better choices and adjust way better to changes within the commerce world, whereas an ill-structured, or a basically confounded organization leads to bottlenecks within the decision-making handle and can have an greatly awful impact on generation and income. We will write an essay sample crafted to your needs. It has a fairly simple warren type trusses design and therefore, it is not that complicated to deal with. Allows new business and new products to be added easily. Each product line or product group gets concentrated attention. The basic reason behind creating a virtual organization is to generate synergy through temporary alliances. Functional structure is helpful up to a certain limit of expansion and growth. The limitations of project organisation are as under: (i) Uncertainty in project structure arises because the Project Manager has to deal with specialists from a number of diverse fields. Helps to maintain an intimate relationship with everybody in the organisation. Self-managing teams have the following characteristics: a. In that case, the same auxiliary information thats circulated with respect to other divisions have to be circulated with respect to the assignment gather. Limit opportunities for upward mobility. vi. Such a closed form structures are preferred these days. For example, marketing department may be classified and grouped into advertising sales, market research, and so on. A simple structure is a fundamental organizational structure that does not have different layers of management. Thus, the process of functional differentiation may continue through successive levels in the hierarchy. vi. Plagiarism Prevention 5. This approach helps reduce errors and lowers costs. Two complementary structurespure project structure and functional structureare merged together to create matrix structure. v. Career patterns and professional development in specialised area. A blockchain is a distributed network that is composed of records that are maintained on an immutable basis. (iii) Co-ordination between line and staff may become difficult. For example, Life Insurance Corporation of India runs its life insurance business on the basis of territorial divisionalisation in which the entire geographical area of the country has been divided into five zoneseastern, central, northern, southern, and western. A boundary less organization, the term coined by Jack Welch, former chairman of GE (USA), seeks to eliminate vertical and horizontal boundaries in the organization as well as the boundaries between the organization and its customers and suppliers. At the same time, divisionalisation involves certain negative points in the form of being expensive, presenting control and coordination problems, lack of suitable personnel for heading divisions, and lack of specialisation of activities. iii. (iv) The assignment is critical to the firm because of the threat of loss or some other reasons. Provides good training ground for strategic managers. Matrix structure is essentially a violation of unity of command and, therefore, whole classical concepts related to the principle of unity of command are violated. ii. Project Organisation Structure 13. For instance, in an industrial enterprise, the major functions like production, finance, marketing and personnel may be grouped into different departments. You will got to consider contributing in a workflow program for superior record taking care of. Each unit is directly accountable to the organization. This essay wont pass a plagiarism check! though there is no bar on small companies to create such organisations. In the present era of globalisation, strategic alliances and organization-customer-supplier links have become significant sources for developing competitive advantage. iii. The organisational structure of an enterprise may undergo changes when there are changes in such factors as the size of the enterprise, nature of business, marketing characteristics, etc. Various leveled structure sets down the two channels and the cases of correspondence. It is the oldest and most common organisation structure. There are rigid hierarchical relationships in the organisation. In a functional structure, activities are grouped and departments are created on the basis of specified functions to be performed. 3. Functional Structure 3. Hill, B. The project staff is separate from and independent of the functional departments. Based on this concept, virtual organization has been defined as follows Virtual Corporation is a temporary network of independent companiessupplies, customers, even erstwhile rivalslinked by information technology to share skills, costs, and access to one anothers markets. 3 disadvantages of a functional structure. Network structure is created around a central organisation that relies on other organisations to perform manufacturing, distribution, financing and other crucial business functions on a contract basis. We have already learned in previous chapter that data structure plays crucial role in design and maintenance of It is suitable where environment is uncertain and generally dynamic or unstable. Some companies can do something very well but struggle with most others. ii. Its applied in GE (General Electric Company) that contains aviation, transportation, currents digital and renewable energy departments. This structure is very much helpful in implementing strategy of a multidivisional business. 21 days ago. For building the project team, personnel are drawn both from the functional departments of organisation and from outside. Low-cost but efficient information technology has also facilitated this process. The divisional structure can be organised in one of four ways by geographic area, by product or service, by customer, or by process. d. They often create their own schedules and review their performance as a group. This is being applied to various fields of activities because of pressure for dual focus, pressure for high information processing, and pressure for shared resources. The major advantages of departmentation by territory are the following: i. In spite of both these problems, boundary less organization is in practice and their popularity is increasing day-by-day. One advantage of the matrix organizational structure is that people across different functional areas have a better understanding of their coworkers in other areas. The basic or major functions are those which are essential for the strategy and their operations contribute to organizational efficiency. Specialists get higher satisfaction while working on complex projects. Each product division maintains its separate facilities and personnel. Functional departmentation is the most widely used basis for organising activities. ADVERTISEMENTS: 2. It also helps in reducing transportation and distribution costs. Terms of Service 7. Thus, what is suitable for one business may not be suitable for a similar unit, but there are successful firms in a given industry tend to design structure in a similar way. The dangers of There is a high degree of differentiation of functional tasks. It encourages general management development. This type of structure is highly centralised. It increases problems of central management control. uncluttered, natural adj. e. They prepare their own budgets and coordinate their work with other departments. Each zone has further been divided into appropriate number of divisions, for example, northern zone into four divisions located at Jalandhar, Chandigarh, New Delhi, and Ajmer. A team-based organization is considered to be better than group-based organization as the former leads to enhanced performance, reduced costs, organizational enhancement, and better employee satisfaction. What are the advantages and disadvantages of Organisational structure? There is integration of activities relating to a particular line of product. Let us assume that a typical company has two divisions for metal products and cement respectively. In matrix structure, a project manager is appointed to coordinate the activities of the project. Divisional managers can concentrate on responsible area and can A consistent framework of checks and input can offer help in ensuring that the corporate structure is working authentically which all data is being gotten. It has some of the advantages of decentralisation. In India, many companies have organised their businesses on the concept of SBU. The specialisation increases operational efficiency, economic flexibility, and greater motivation to the people having attached with their area of speciality. A effective supervisor ought to be the go-between for specialists and officials, and a facilitator thats doled out an errand to total. (v) It keeps problems of production isolated from those of others. Apart from basic and secondary functions, departments are also created for supporting activities to take the advantages of specialisation and to support the basic and secondary activities. Boundary less organizations are better equipped to manage these features. Thus, a subordinate in matrix structure may receive instructions from two bosses. Divisional structure offers many advantages over functioned structure especially in terms of autonomy for efficient management, management development, increasing organizational size up to any limit, and taking into account of specific problems related with each product or territory contributing to the overall objectives of the firm.
Beverley O'connor Partner,
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