Describe the Sturcture of the Functional Group in Each of the Following Families

Types of Organizational Structures

An organizational structure defines how jobs and tasks are formally divided, grouped, and coordinated. The type of organizational structure would depend upon the type of organization itself and its philosophy of operations. Basically, the construction can be mechanistic or organic in nature or a combination of thereof. Nonetheless, nigh organizational structures are still designed along mechanistic or classical lines.

Contents

• Central Elements for Proper Organizational Structure
• Some of the near common organizational structures are:
• Line Arrangement
• Line and Staff Arrangement
• Functional System
• Divisional Organization
• Project Organization
• Matrix Organization

Key Elements for Proper Organizational Structure

• Work Specialization: To what degree are articles subdivided into carve up jobs?
• Departmentalization: On what basis jobs volition exist grouped?
• Chain of Control: To whom will individuals and groups written report?
• The bridge of Control: Upward to how many individuals tin a manager efficiently direct?
• Centralization vs Decentralization: Who will exist the sole maker of decisions?
• Formalization: To what degree volition there exist rules and regulations to direct employees and managers?

Some of the most mutual organizational structures are:

Line Organization

Line arrangement is the simplest form of organization and is near common amongst pocket-sized companies. The dominance is embedded in the hierarchical structure and it flows in a direct line from the top of the managerial hierarchy down to different levels of managers and subordinates and further down to the operative levels of workers. Information technology clearly identifies authority, responsibility, and accountability at each level.

These relationships in the hierarchy connect the position and tasks of each level with those above and below information technology. There is a clear unity of command and so that the person at each level is reasonably contained of any other person at the aforementioned level and is responsible only to the person higher up him. The line personnel is directly involved in achieving the objectives of the company.

Considering of the small size of the visitor, the line structure is simple and the say-so and responsibility are clear-cutting, hands assignable, and traceable. It is piece of cake to develop a sense of belonging to the arrangement, communication is fast and easy and feedback from the employees can be acted upon faster.

The discipline among employees tin can exist maintained hands and effective control can be easily exercised. If the president and other superiors are benevolent in nature, then the employees tend to consider the system as a family and tend to be closer to each other which is highly benign to the organisation.

On the other hand, it is a rigid form of system and in that location is a trend for line potency to get dictatorial that may be resented past the employees. Also, there is no provision for specialists and specialization that is essential for growth and optimization, and hence for growing companies, the pure line type of structure becomes ineffective.

The line organization can be a pure line type or departmental line type. In the pure line type prepare-upward, all similar activities are performed at whatever 1 level. Each group of activities is cocky-contained and is contained of other units and is able to perform the assigned duties without the assistance of others. In a departmental line blazon of organization, too known as a functional structure, the corresponding workers and supervisors are grouped on a functional basis such as finance, product and marketing, and so on.

Line and Staff Organization

In this type of organisation, the functional specialists are added to the line, thus giving the line the advantages of specialists. This type of organisation is most common in our business economy and particularly among large enterprises. Staff is basically advisory in nature and normally does not possess and control authorisation over line managers. The staff consists of two types:

Full general Staff: This group has a general background that is usually similar to executives and serves as assistants to acme direction. They are not specialists and more often than not have no authority or responsibleness of their own. They may exist known every bit special assistants, assistant managers, or in a college setting every bit deputy chairpersons.

Specialized Staff: Unlike the general staff who more often than not aid only one line executive, the specialized staff provides expert staff advice and service to all employees on a visitor-broad basis. This group has a specialized groundwork in some functional areas and information technology could serve in whatsoever of the following capacities:

(a) Advisory Capacity: The primary purpose of this grouping is to render specialized advice and assistance to management when needed. Some typical areas covered past advisory staff are legal, public relations, and economical development.

(b) Service Capacity: This group provides a service that is useful to the organization as a whole and not just to whatsoever specific division or function. An example would be the personnel department serving the enterprise by procuring the needed personnel for all departments. Other areas of service include inquiry and evolution, purchasing, statistical assay, insurance issues, and and so on.

(c) Control Capacity: This group includes quality control staff who may accept the potency to control the quality and enforce standards.

The line and staff type of organization use the expertise of specialists without diluting the unity of control. With the advice of these specialists, the line managers too become more than scientific and tend to develop a sense of objective assay of business problems. According to Soltonstoff, a staff member may serve equally a omnibus, diagnostician, policy planner, coordinator, trainer, strategist, and so on.

The line and staff type of system is widely used and is advantageous to the extent that the specialized advice improves the quality of decisions resulting in operational economics. Too, since line managers are generally occupied with their day-to-day current operations, they practise not take the time or the background for futurity planning and policy formulation. Staff specialists are conceptually oriented towards looking ahead and have the time to practise strategic planning and analyze the possible effects of expected future events.

Its master disadvantages are the defoliation and conflict that arises between line and staff, the high cost that is associated with hiring specialists, and the tendency of staff personnel to build their own image and worth, which is sometimes at the cost of undermining the authority and responsibility of line executives.

Functional Organization

Ane of the disadvantages of the line organization is that the line executives lack specialization. Additionally, a line manager cannot be a specialist in all areas. In the line and staff type of system, the staff specialist does not take the authority to enforce his recommendations. The functional organizational concept originated with Fredrick West. Taylor and it permits a specialist in a given area to enforce his directive within the clearly divers telescopic of his dominance.

A functional manager can brand decisions and issue orders to the persons in divisions other than his own, with a right to enforce his communication. Some adept examples of specialists who have been given functional authority in some organizations are in the areas of quality control, safety, and labor relations.

The functional organization features separate hierarchies for each office creating a larger calibration version of functional departments. Functional departmentalization is the basis for grouping together jobs that relate to a single organizational role or specialized skill such as marketing, finance, production, and and so on. The chain of command in each function leads to a functional head who in turn reports to the top manager.

The functional design enhances operational efficiency besides every bit improvement in the quality of the production because of specialists being involved in each functional area and besides because resources are allocated by function rather than being duplicated or diffused throughout the organization.

Ane of the main disadvantages of the functional design is that it encourages narrow specialization rather than general management skills so that the functional managers are non well prepared for top executive positions. Besides, functional units may be so concerned with their own areas that they may be less responsive to overall organizational needs.

Divisional Organisation

The divisional or departmental organisation involves the group of people or activities with similar characteristics into a single section or unit. Also known every bit self-contained structures, these departments operate as if these were small organizations under a big organizational umbrella, meeting bounded goals as prescribed by organizational policies and plans.

The decisions are generally decentralized so that the departments guide their own activities. This facilitates communication, coordination and control, thus contributing to organizational success. Also, considering the units are independent and semi-democratic, it provides satisfaction to the managers that in plough improves efficiency and effectiveness.

This partition and concentration of related activities into integrated units is categorized on the following basis:

Departmentalization by Product. In this case, the units are formed according to the type of product and it is more useful in multi-line corporations where product expansion and diversification, and manufacturing and marketing characteristics of the product are of principal concern. The general policies are decided upon past the height management within the philosophical guidelines of the arrangement.

Departmentalization by Customers. This blazon of departmentalization is used by those organizations that deal differently with different types of customers. Thus, the customers are the key to the way the activities are grouped. Many banks accept priority services for customers who deposit a given corporeality of money with the bank for a given menstruation of time. Similarly, business organisation customers go better attention in the banks than other individuals.

Departmentalization past Area. If an organisation serves different geographical areas, the division may be based upon a geographical ground. Such divisions are especially useful for large-calibration enterprises that are geographically spread out such every bit cyberbanking, insurance, chain section stores, or a product that is nationally distributed.

Departmentalization by Time. Hospitals and other public utility companies such every bit telephone companies that work around the clock are mostly departmentalized on the basis of time shifts. For case, the telephone company may have a 24-hour interval shift, an evening shift, and a dark shift, and for each shift, a different section may exist, fifty-fifty though they are all alike in terms of objectives.

Project Arrangement

These are temporary organizational structures formed for specific projects for a specific menses of time and in one case the goal is achieved, these are dismantled. For example, the goal of an organization may exist to develop a new auto. For this projection, specialists from different functional departments volition exist fatigued to work together.

These functional departments are production, engineering, quality control marketing research, etc. When the project is completed, these specialists go back to their respective duties. These specialists are basically selected on the basis of task-related skills and technical expertise rather than decision-making experience or planning ability.

These structures are very useful when:

1. The project is clearly defined in terms of objectives to be accomplished and the target date for the completion of the projection is ready. An instance would be the project of building a new drome.

2. The project is separate and unique and not a function of the daily work routine of the organization.

3. There must be different types of activities that require skills and specialization and these must exist coordinated to reach the desired goal.

four. The project must exist temporary in nature and not extend into other related projects.

Matrix System

A matrix structure is, in a sense, a combination and interaction of project and functional structures and is suggested to overcome the problems associated with the project and functional structures individually. The key features of a matrix structure are that the functional and project lines of authority are superimposed with each other and are shared by both functional and project managers.

The project managers are generally responsible for the overall direction and integration of activities and resources related to the project. They are responsible for accomplishing work on schedule and within the prescribed upkeep. They are too responsible for integrating the efforts of all functional managers to reach the project and directing and evaluating project activity. The functional managers are concerned with the operational aspects of the projection. The functional structure is primarily responsible for:

ane. Providing technical guidance for the project.

2. Providing functional staff that is highly skilled and specialized.

3. Completing the project within prescribed technical specifications.

Greiner sees matrix arrangement, in which cross-functional teams are used, as a response to growing complexity associated with organizational growth. These complexities, both internal(size, engineering science) as well as external (markets, competitors), create issues of information processing and communication that are all-time dealt with by matrix type of system.

Matrix organizational design is nearly useful when in that location is pressure for shared resources. For case, a company may demand 8 product groups, withal accept the resource merely to hire four marketing specialists. The matrix provides a convenient way for the eight groups to share the skills of the four specialists.

Each matrix contains three unique sets of role relationships: (1) the superlative manager or Chief Executive Officeholder who is the head and balances the dual bondage of command; (2) the managers of functional and project (or production) departments who share subordinates; and (3) the specialists who written report to both the respective functional director and projection managing director.

An of import attribute of the matrix structure is that each person working on the projection has two supervisors – the project manager and the functional manager.

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References

http://smallbusiness.chron.com/different-types-organizational-structure-723.html

https://www.boundless.com/finance/introduction-to-the-field-and-goals-of-fiscal-management/business concern-organization-types/overview-of-organizational-construction/

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