Chapter 9: The People in Information Systems – Information Systems for Business and Beyond
HR's role in evaluating and implementing organizational structures. It allows groups to work together within their individual functions to manage tasks. . Helping employees understand the link between organizational structure .. company leaders and the HR team should examine and evaluate current. Organizational structure refers to the way that an organization arranges people and jobs so The relationships among these positions are illustrated graphically in an organizational structures including those arranged by product, function, and Job specialization, a hierarchical reporting structure through a tightly-knit. In this type of organisational structure, businesses are organised according to their roles and skills into smaller groups or departments. This may include, for.
It also utilizes a plan to compete and operate as a separate business or profit center. Examples of divisions include regional a U.
S Division and an EU divisionconsumer type a division for companies and one for householdsand product type a division for trucks, another for SUVS, and another for cars. The divisions may also have their own departments such as marketing, sales, and engineering. The advantage of divisional structure is that it uses delegated authority so the performance can be directly measured with each group. This results in managers performing better and high employee morale. Also, a company will have a simpler process if they need to change the size of the business by either adding or removing divisions.
When divisional structure is utilized more specialization can occur within the groups. When divisional structure is organized by product, the customer has their own advantages especially when only a few services or products are offered which differ greatly.
When using divisional structures that are organized by either markets or geographic areas they generally have similar function and are located in different regions or markets. This allows business decisions and activities coordinated locally. The disadvantages of the divisional structure is that it can support unhealthy rivalries among divisions. This type of structure may increase costs by requiring more qualified managers for each division.
Also, there is usually an over-emphasis on divisional more than organizational goals which results in duplication of resources and efforts like staff services, facilities, and personnel.
Matrix structure[ edit ] This section possibly contains original research. Please improve it by verifying the claims made and adding inline citations. Statements consisting only of original research should be removed.
October Learn how and when to remove this template message The matrix structure groups employees by both function and product simultaneously. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms.
An example would be a company that produces two products, "product a" and "product b". Using the matrix structure, this company would organize functions within the company as follows: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project.
The functional managers maintain control over their resources and project areas. A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing of power is a delicate proposition.
A project manager is primarily responsible for the project.
Organizational Structure - strategy, levels, examples, advantages, manager, model, type, company
Functional managers provide technical expertise and assign resources as needed. There are both advantages and disadvantages of the matrix structure; some of the disadvantages are an increase in the complexity of the chain of command. This occurs because of the differentiation between functional managers and project managers, which can be confusing for employees to understand who is next in the chain of command.
An additional disadvantage of the matrix structure is higher manager to worker ratio that results in conflicting loyalties of employees. However the matrix structure also has significant advantages that make it valuable for companies to use.
Organizational Circle[ edit ] This section possibly contains original research. October Learn how and when to remove this template message The flat structure is common in small companies entrepreneurial start-ups, university spin offs. As companies grow they tend to become more complex and hierarchical, which leads to an expanded structure, with more levels and departments.
All of the aforementioned organizations operate in the field of technology, which may be significant, as software developers are highly skilled professionalsmuch like lawyers.
Senior lawyers also enjoy a relatively high degree of autonomy within a typical law firmwhich is typically structured as a partnership rather than a hierarchical bureaucracy. Some other types of professional organizations are also commonly structured as partnerships, such as accountancy companies and GP surgeries. Often, growth would result in bureaucracythe most prevalent structure in the past.
It is still, however, relevant in former Soviet Republics, China, and most governmental organizations all over the world. Shell Group used to represent the typical bureaucracy: It featured multiple levels of command and duplicate service companies existing in different regions. All this made Shell apprehensive to market changes,  leading to its incapacity to grow and develop further.
The failure of this structure became the main reason for the company restructuring into a matrix. Starbucks is one of the numerous large organizations that successfully developed the matrix structure supporting their focused strategy. Its design combines functional and product based divisions, with employees reporting to two heads.
This structure can be seen as a complex form of the matrix, as it maintains coordination among products, functions and geographic areas. With the growth of the internet, and the associated access that gives all levels of an organization to information and communication via digital means, power structures have begun to align more as a wirearchyenabling the flow of power and authority to be based not on hierarchical levels, but on information, trust, credibility, and a focus on results.
In general, over the last decade, it has become increasingly clear that through the forces of globalization, competition and more demanding customers, the structure of many companies has become flatter, less hierarchical, more fluid and even virtual.
In small businesses, the team structure can define the entire organization. XeroxMotorolaand DaimlerChrysler are all among the companies that actively use teams to perform tasks. Network[ edit ] Another modern structure is network. While business giants risk becoming too clumsy to proact such asact and react efficiently,  the new network organizations contract out any business function, that can be done better or more cheaply.
This created the context for vertically-structured organizations characterized by distinct job classifications and top-down authority structures, or what became known as the traditional or classical organizational structure. Job specialization, a hierarchical reporting structure through a tightly-knit chain-of-command, and the subordination of individual interests to the superordinate goals of the organization combined to result in organizations arranged by functional departments with order and discipline maintained by rules, regulations, and standard operating procedures.
This classical view, or bureaucratic structure, of organizations was the dominant pattern as small organizations grew increasingly larger during the economic boom that occurred from the s until the Great Depression of the s. The Great Depression temporarily stifled U.
Postwar rebuilding reignited economic growth, powering organizations that survived the Great Depression toward increasing size in terms of sales revenue, employees, and geographic dispersion. Along with increasing growth, however, came increasing complexity. Studies of employee motivation raised questions about the traditional model. The "one best way" to do a job gradually disappeared as the dominant logic. It was replaced by concerns that traditional organizational structures might prevent, rather than help, promote creativity and innovation—both of which were necessary as the century wore on and pressures to compete globally mounted.
What Is the Relationship Between Organizational Functions & Organizational Structure? | fabula-fantasia.info
The structure of every organization is unique in some respects, but all organizational structures develop or are consciously designed to enable the organization to accomplish its work. Typically, the structure of an organization evolves as the organization grows and changes over time. Researchers generally identify four basic decisions that managers have to make as they develop an organizational structure, although they may not be explicitly aware of these decisions.
First, the organization's work must be divided into specific jobs. This is referred to as the division of labor. Second, unless the organization is very small, the jobs must be grouped in some way, which is called departmentalization. Third, the number of people and jobs that are to be grouped together must be decided.
This is related to the number of people that are to be managed by one person, or the span of control—the number of employees reporting to a single manager.
Fourth, the way decision-making authority is to be distributed must be determined. In making each of these design decisions, a range of choices are possible. At one end of the spectrum, jobs are highly specialized with employees performing a narrow range of activities, while at the other end of the spectrum employees perform a variety of tasks. In Figure 1b Organizational Structure traditional bureaucratic structures, there is a tendency to increase task specialization as the organization grows larger.
In grouping jobs into departments, the manager must decide the basis on which to group them. The most common basis, at least until the last few decades, was by function. For example, all accounting jobs in the organization can be grouped into an accounting department, all engineers can be grouped into an engineering department, and so on. The size of the groupings also can range from small to large depending on the number of people the managers supervise.
The degree to which authority is distributed throughout the organization can vary as well, but traditionally structured organizations typically vest final decision-making authority by those highest in the vertically structured hierarchy. Even as pressures to include employees in decision-making increased during the s and s, final decisions usually were made by top management.
What Is the Relationship Between Organizational Functions & Organizational Structure?
The traditional model of organizational structure is thus characterized by high job specialization, functional departments, narrow spans of control, and centralized authority.
Such a structure has been referred to as traditional, classical, bureaucratic, formal, mechanistic, or command and control.
A structure formed by choices at the opposite end of the spectrum for each design decision is called unstructured, informal, or organic. The traditional model of organizational structure is easily represented in a graphical form by an organizational chart.
It is a hierarchical or pyramidal structure with a president or other executive at the top, a small number of vice presidents or senior managers under the president, and several layers of management below this, with the majority of employees at the bottom of the pyramid.
The number of management layers depends largely on the size of the organization. The jobs in the traditional organizational structure usually are grouped by function into departments such as accounting, sales, human resources, and so. Figures 1a and 1b illustrate such an organization grouped by functional areas of operations, marketing and finance.
There are four commonly used bases. Every organization of a given type must perform certain jobs in order do its work. For example, key functions of a manufacturing company include production, purchasing, marketing, accounting, and personnel. The functions of a hospital include surgery, psychiatry, nursing, housekeeping, and billing.
Using such functions as the basis for structuring the organization may, in some instances, have the advantage of efficiency. Grouping jobs that require the same knowledge, skills, and resources allows them to be done efficiently and promotes the development of greater expertise.
A disadvantage of functional groupings is that people with the same skills and knowledge may develop a narrow departmental focus and have difficulty appreciating any other view of what is important to the organization; in this case, organizational goals may be sacrificed in favor of departmental goals.
In addition, coordination of work across functional boundaries can become a difficult management challenge, especially as the organization grows in size and spreads to multiple geographical locations.