...words « In this age of hyper-competition, organisations should adopt a decentralised structure ». Businesses have entered in a new era, the era of hyper-competition, more competitive as they become more global. Business has shifted dramatically from a slow-moving stable environment to an environment where competitive advantages are no longer sustainable but temporary as new competitors enter the market. Aveni argues that, to have a chance to survive in this constantly changing environment, firms should adopt a new strategy that best suits with these unpredictable variations. In recent years, organisations have been reassessing their strategy and structure because of this growing competition, thinking that their success is widely related with re-matching to its environment. (Johnson, 1988; Miller and Friesen, 1980) Tom Peter (1987) and Michael Porter (1990) claimed that adopting this attribute if changing ability will in some sense guarantee competitive advantage. In this assignment, we will base our discussion on managing theories in order to explain organisations’ structure choice by describing how they respond to their changing context. We will comment on the view that structure depends on the contingency theory and contrast both decentralised and centralised structure in each contingency factor, using resources to support statements. Finally, we shall decide which structure best fits with this context of hyper-competition. It is possible to characterize the...
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...Organisation structure Structure relates to a skeletal framework of activities and processes in an organisation and specifies the roles of these in achieving goals and objectives of the organisation. According to (Mullins, 2009), a good structure is highly important due to the fact that decisions on structure are primary strategic decisions which can make or break an organisation. One important aspect of a good structure is the human element. Organisation structure should be designed so as to encourage employees and increase the morale and job satisfaction of organisation members which will result to overall organisation efficiency. (Mullins, 2006) describes nine basic considerations in the design of organisation structure. The fundamental step is to define organisational objectives to enable further analysis and comparisons of other forms of structure. Clarification of objectives A clear definition of objectives is vital to provide a framework for the design of structure of an organisation. Organisation objectives provide fundamental schemes for division of labour and creation of group units and sub units. Clearly stated aims and objectives will assist in decisions on the strategy and structural dimension to employ to achieve organisational objectives. Task and element functions Certain functions must be performed in order to produce a good or service, from the development of the good or service to finance of resources used in the complete processing. These functions...
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...Organizational structure is a type of framework used in businesses. Its purpose is to find the most effective way to delegate roles, power, and responsibilities to its employees and departments. It also controls and coordinates how information flows between different departments and levels of management in an organization. Having a proper organizational structure will allow a company to implement better operating procedures, and dictate which employees help in making decisions or shaping the organization. Based on an organizations goals and objectives it may be structured in many different ways. Two important structures include Mechanistic and Organic structures. Mechanistic structures are mainly for companies that operate in a stable environment, use a centralized approach of authority, and maintain strong loyalty for management. Organizations that use a Mechanistic type of structure generally do not need to change or adapt their structure. This is mainly due to lack of innovation, creativity, and quick decision analysis not needed. Examples of organizations using Mechanistic structures include colleges and universities. If you think about it, they have long and strict registration procedures, rarely have to adapt or change in order to keep students enrolling, and most students tend to maintain high loyalty or obedience toward their instructors. Mechanistic Structures Include: – Belief upper management is better capable of making decisions – Management...
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...Organizational Structure Paper Courtney Fryer MGT 230 January 6, 2015 Ms. B. Alston Organizational Structure Paper Fast food chains such as McDonald’s, Burger King, and Chick-fil-a, all have an interest in making growing profits and enlarging their companies’ name. Although each company has their own unique and different set of requirements for functioning, the organizational structure has given these companies chance and opportunity to expand to outside parties. Using this paper, I will show the different ways in which these companies use the organizational structures. Every structured organization is run differently. When you compare and contrast more than one company it can show how they may be similar in their structured organization but also show how they differ. The human resources and finance part of the different franchises might favor but the organizational design might be total opposite between the franchises. Chick-fil-a is known for their one of kind chicken sandwiches. The company was started back in the 1960s when its founder, Truett Cathy, invented the original chicken sandwich. The company’s first in-store restaurant was located in the Greenbrier Mall in Atlanta, Georgia in 1967. Since then the Chick-fil-a franchise has grown enormously with over 500 restaurants over the United States and still continuing to grow. Chick-fil prides themselves in handpicking their employees and giving their employees opportunities that...
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...Organisation structures can be broadly classified into the following types/forms: Line Organisation structure. Functional Organisation structure. Line and staff Organisation structure. Product Organisation structure. Committee and Matrix Organisation structure. .1 Line Organisation Structure Line Organisation (also called Military/Scalar Organisation) is the oldest and the simplest form of internal Organisation structure authority moves directly from the top level to the lowest level in a step-by-step manner. It is straight and vertical. The top-level management takes all major decisions and issues directions for actual execution. The general manager, for example, issues order to various departmental managers. Thereafter, the departmental manager issues instructions to works manager. Advantages of Line Organisation Structure Simplicity: Line Organisation structure is easy to understand and follow by superiors and subordinates. It is simple and clear as regards authority and accountability. Prompt decisions: Line Organisation facilitates prompt decision-making at all levels as the authority given is clear and complete. Discipline: It brings discipline in the Organisation due to unity of command, delegation of authority and direct accountability. Economical: Line Organisation is economical as experts are not appointed. Attraction to talented persons: Line Organisation brings out talented workers and develops in them quality of leadership. It offers opportunities...
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...Organisational Structure For an organisation to be successful it needs a strong organisational structure. How the organisation is set up will directly impact the success or failure of the company. They need to be structured and organised in a way that will meet their goals and needs. Even though the organisational structure is focus on the company’s goal it also dictates how to report priorities and strategies of upper management. The organisational structure is a hierarchy of people and its functions. The organisational structure tells you the character of an organisation and the values it believes in. Therefore, when you do business with an organisation or getting into a new job, it is always a great idea to get to know and understand their organisational structure. Depending on the organisational values and the nature of the business, organisations tend to adopt one of the following structures for management purposes. Although the organisation follows a particular structure, there can be departments and teams following some other organisational structure in exceptional cases. However, some organisations may also follow a combination of different organisational structures as well. Follow this, I will now refer some of the Organisation Structures used nowadays and explain how can they benefit or damage their business, referring their advantages and disadvantages. Flat Organisational Structures use a reduce number of levels, and a wide span of control, which means...
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...Week 3 Management Structures By: Misty Ladnier The organization is run by people chosen best to handle the stressful situations that we are faced on a daily basis. I have been trained to make sure that my victims are treated correctly to their individual cases. In order to do so I need an organizational structure. I will explain the advantages and disadvantages of Departmentalization, Matrix organizations, the project team, and the collegial model. Departmentalization is very tricky; you have to pair individuals up so that the department runs smoothly. Sometimes you have people that need to be trained to do this kind of work so that the department does have great communication skills to understand what is going on at all times to keep your patients happy. Matrix organizations have resources that can be shared amongst the department or company. They run on getting ideas from whatever can be tapped at that particular time. What would lead to complications are two or more people that are management and the lack of communication. This can lead to frustrations with the staff that are one step below or one step higher. The project team is the people that come up with ideas. They are the people that have events for the employees or the patients. These events can bring fundraisers for things needed for the organization. But disagreements can put any planning at a standstill and then it can become too late to have it. The collegial model is people within the company that have...
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...from the same company and the way in which they react or respond to the meanings which they have attached to their lives. Organizational structure determines how the roles, power and responsibilities are assigned, controlled and coordinated between the different levels of management. More specifically, structure describes how members are accepted, how leadership is chosen, and how decisions are made. To have a satisfied, motivated, less stressed performing workforce an organization must have consistency amongst its structure, system, people, culture and good fit with the strategy. In this paper an attempt has been made to identify how ethics is affected by organizational structure and culture. Culture is what the majority of employees view as acceptable behavior at work, the ethics of the leaders and organization as a whole. A collection of actions and views that reinforces what a company truly values. Every company has different organizational culture, for me it is how the company is defined in its entirety; its integrity, shared goals and focus on building teams. A positive work environment also encourages ethical decision making where employees feel comfortable and have freedom to make honorable decisions. The structure of an organization (also called design) has a huge impact on the type of culture a company develops. Structure can be defined in several ways, Motan and Hu (2004) noted that commonly used structural dimensions include centralization, specialization,...
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...Management Structures Hope Calkins HSM/220 August 23, 2013 Joanie Blamer Management Structures There are advantages and disadvantages to organizational structures. Each one can affect day-to-day life in different ways. These structures are used in large organizations as well as small ones. There are structures that work for some organizations and some that do not. It all depends on the organizations needs and goals. The advantages of departmentalization is that the organization can have more then on department that can help a specific group. For instance, in a local health department, employees are broke up into groups to help out specific people with specific needs such as, pregnancy, wic, and health checkups. There are specific people for each group. The disadvantage to the organization that uses this structure is that it is limited on who can help with a specific need. There may not be enough people to work the demands of a specific group, therefore people may have to wait for services. The advantage of a matrix organization is there are several different areas of expertise in one place. For instance, in hospitals, there are many specialists that are broken up into specific areas such as cardiology, pediatrics, and oncology. There is always a leader for each area. All things will be passed from supervisor to employee. The disadvantage of a matrix organization is that growth can only happen in the organization if the supervisor feels the employee is deemed fit...
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...STRUCTURE The structure of something may be defined as the ways the parts of it relate to each other. It can be forwarded for an organization as the blueprint for formal expectations and exchanges among internal players (executives, managers, employees) and external constituencies such as customers and clients. Structure plays an important role in making an organization able to get competitive advantage in the market (Day 1999). The structural frame is one of the oldest frame in organizational history. It focuses on the architecture of the organizations – designing rules and policies, division into units and subunits to give shape to decisions and activities (Bolman and Deal 2003). For a smooth functioning of an organization, it needs to allocate the work to individuals and groups and co-ordinate roles and units. The organization can employ two primary ways to co-ordinate individual and group efforts. I) Vertically – through the formal chain of command. II) Laterally – through meetings, committees, co-ordinating roles on . network structure. In the case of Google Corporation, it emphasizes more on lateral structure giving more power and autonomy to its employees. The organization provides more recreational amenities to its employees which helps them to remain energetic, enthusiastic and active. Apart from that, all Google engineers are encouraged to spend 20% of their work time on projects that intrests them and as a result of this, the...
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...chapter Organisational Structure and Design . 9.1 Defining Organizational Structure • • Describe each of the five forms of departmentalization. • Differentiate, authority, responsibility, and unity of command. • Sandra Carlos Discuss the traditional and contemporary views of work specialization, chain of command, and span of control. Explain how centralization – decentralization and formalization are used in organizational design. Organising 9.2 Mechanistic and Organic Structures • Contrast mechanistic and organic organizations. • Explain the contingency factors that affect organizational design. o -the process of organising an organisation’s structure o -undergone lots of changes in the last few years 9.3 Common Organizational Designs • Contrast the three traditional organizational designs. • Describe the contemporary organizational designs. • Discuss the organizational design challenges facing managers today. Exhibit 9–1 Purposes of Organizing • Divides work to be done into specific jobs and departments. • Assigns tasks and responsibilities associated with individual jobs. • Coordinates diverse organizational tasks. • Clusters jobs into units. • Establishes relationships among individuals, groups, and departments. • Establishes formal lines of authority. • Allocates and deploys organizational resources. Organisational Structure -formal framework by which...
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...Week 3 Assignment 1 1. Functional structure in business works best for smaller companies and is the most common type of structure. Smaller companies that tend to have one product or service and one leader such as an owner or president. Advantages of a functional structure include having a single authority, employees with similar knowledge and a defined chain of command. It is a vertical structure with a hierarchy where information flows to the top of the chain (Daft, 2013. p. 318). Disadvantages of functional structure include things such as being more Bureurocratic and employees tend to overlook the larger picture of the organization. Daft explains that because these type companies are divided into departments, communication and coordination are slow and decision making may be poor (2013). 2. Another structure is the divisional approach. As opposed to the functional way, there are several teams across the same level that works on their own single product or service. Each of these teams has their own leader or manager. Pros of the divisional approach allow teams to be more focused on their own product or service. This allows them to be flexible and more reactive to changes (Daft, 2013. P. 320). Cons of this structure include higher overhead since it takes more employees to make up the teams and there may be a rivalry between teams due to competition. 3. The matrix is a combination of both functional and divisional (Daft, 2013 p. 321). There may be multiple higher leaders...
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...Structure is extremely important to any organization or business. Not every organization provides the same services or products; therefore not every organization is going to be structured the same way. According to University of Phoenix Achieving Excellence in the Management of Human Services Organizations, (2002), There are four organizational structures that human services agencies have adapted as what is known as the “Formal and the Informal Organizational Charts” These organizational structures are known as Departmentalization, Matrix organizations, the project team, and the collegial model. There are five ways that an organization can be departmentalized; by function, by process by market, by consumer/client and by geographic area. Departmentalization breaks the organization down into parts or different departments within the organization. The advantage to this organizational structure is that it breaks the organization down into smaller departments. This helps to ensure that the clients get the services they need and that they are not shuffled from worker to worker. It also makes things easier on the supervisors or managers when something needs to be addressed. As disadvantage to departmentalization is that some personnel might be trained in more than one area and being stuck doing the same thing can sometimes lead to them being unsatisfied in their employment. Matrix organizations are more flexible than departmentalization is. A big advantage to matrix organizations...
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...HSM/220 Week 3 Checkpoint: Management Structures Services for domestic abuse patients can be used in every organization that provides human services. There should be departments linked to the response to domestic violence and focus on helping those in need. Departmentalization is the process of dividing an organization into blocks or groups that may provide assistant to victims of domestic violence. Departmentalization offers both advantages and disadvantages to any organization. Advantages include: growth and expansion; management development; better customer service; improved efficient and enhance communication. Disadvantages include: communication reduced, slow decision-making and lack of cooperation between departments (Lewis, 2013). On a day-to-day operation, departmentalization is a conceptual tool, not simply a way to depicting the number of positions within an organization. Decisions about how to subdivide the work of an agency will depend on the nature of the service provided. The kinds of structure that are flexible and responsive to people in need (victims of domestic violence) can all be categorized under the heading of matrix organizations (Kettner, 2002). Advantages include: employees are highly responsive to both function and product line; flexibility of employee assignment and specialized resources. Disadvantages include: Constant tension between functional specialty and product line; dual authority structure difficult to maintain and employees have a difficult...
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...1) When considering an organizational structure as complex and varied as that of a criminal justice organization, one must examine the existence of conflicting goals. It is the ultimate goal of every organization to meet established and expected goals. This is a direct measure of that organizations effectiveness. However, when an agency has numerous and complex goals, is it desirable that these goals may conflict? Stojkovic et al., 2008 point out that organizations may seek to attain satisfactory levels of all of their goals, as opposed to attempting to entirely meeting every goal. While certain goals of an agency may conflict with others, this is not necessarily negative, but simply a constraint that may influence the outcome of these goals (Stojkovic et al., 2008). For example, while it may seem unreasonable that a known criminal be released from jail and acquitted due to a legal technicality in our judicial system, this due process is essential to our countries liberty (Stojkovic et al., 2008). Criminal justice organizations are, in their nature complex and there are a variety of external and environmental issues that influence these agencies. Their primary goal is to maintain order and reduce crime. While attempting to attain these goals, police agencies come into contact with several other organizations with varying goals of their own. For example in the course of their function the police agency encounters the prosecutor’s office; the division of corrections; federal...
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