Models of Organizatonal Structure focusing on Functional structure
|✅ Paper Type: Free Essay||✅ Subject: Business|
|✅ Wordcount: 1491 words||✅ Published: 1st Jan 2015|
Assuming that you want to establish an event management company. Identify the form of organization structure that you would apply for your new company and justify your answers.
Organizational structure contains activities such as coordination, supervision and task allocation, which are directed towards all achievement aimed by an organization. It can also be considered as the viewing glass or perspective through which individuals see their environment and the organization.
Most likely there are many organizations that have graded structures, but not all companies do follow the grading steps. Most organizations are with variants of gathered entities. Different organizations have different variants of gathered entities.
An organization can be structured in different other ways. It all depends on their objectives. The structure of the organization would determine the modes in which it performs and operates. An organizational structure allows the expressed distribution of responsibilities for different processes and functions to various and different units such as the department, workgroup, branch, and individual.
All organizational structure does affect any organizational actions in mainly two big ways. Firstly, an organizational structure provides foundation on which standard routines rest and operating procedures. Secondly, the organizational structure determines which individuals get to do which particular decision-making processes, and also to extent their views in shaping the organizations work actions.
Types of Organizational Structure
1.2.1 Bureaucratic structure
Bureaucratic structures have their certain grade of standardization. They are more suited for larger scale or more complex organizations. They usually have a very tall structure. Then strain between non-bureaucratic and bureaucratic structures is reverberated in Burns and Stalker distinction between organic and mechanistic structures. It is not the entire thing about bureaucratic structure. It is very much complex and useful for graded structured organization, mostly and mainly in tall organizations. The other way of understanding the characteristics of bureaucracy structure are a ranked structure, a clear defined responsibilities and roles, also a respect for merit.
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1.2.2 Functional structure
All employees within the functional divisions of an organization are often to perform a specified set of tasks, for example in the engineering department; there would be a specified group of engineers that would be staffed. For example, they could be staffed with software engineers. This could lead to a lack of communication between the functional groups within the organization. This would make the organization very inflexible and slow. A functional organization is best suited for producer of standardized services and goods at large volume at low cost. Specialization and coordination of tasks are normally centralized in the functional structure, which makes it to produce a limited amount of services or products expectable and efficient. Efficiencies can be realized as functional organizations integrate their activities vertically so that products those are distributed and sold quickly at low cost. A small business could start making the mechanisms it requires for production of their products instead of just procuring the product from an external organization. It is not only beneficial for an organization; it is also beneficial for the employeeââ‚¬â„¢s faiths
1.2.3 Divisional Structure
This is also known as a “product structure”, the divisional or product structure divides every organizational function into different division. Each and division within the divisional structure consist of all the necessary functions resources and within it. Divisions are categorized in different points of view. One might make distinctions on a product basis /service basis or on geographical. Different products for different customers: households or companies. Another good example is an automobile company; they have different division such as a division for the four heel drive, a division for sedan car, a division for compact cars and more. Each division might have their own sales, marketing and engineering departments.
1.2.4 Matrix structure
The matrix structure gathers employees by both product and function. This structure combines the best of both separate structures. A matrix organization normally uses groups of employees to complete any work, this is to make up for the weaknesses, as well as to take advantage of the strengths, of the decentralized and functional forms. For example a company produces two products, “product A” and “product B”. Product A would have different and various departments, product B would have the exact same structure and departments as the product A. Matrix structure is the purest of all the organizational structures, it is the most simple structure in emulating the companies demonstration.
1.3 Type of Company
This company organizes parties. It is a party planner company. This company plans all sorts of parties in any celebration. For example the organization does organise parties for wedding, birthdays, and many other functions in schools, companies and more. This company provides catering service too. Cleaning service after any function or ceremony is provided if this company had managed the event.
Event management is the application of project management to the development and creation of events, conferences, and festivals. Event management includes studying the details of the brand, identifying the objectives of the audience, planning the concept of the event, planning the logistics and organizing the technical features before actually trying to execute the modalities of the planned event.
The events that this company does are; making games in a birthday party. For example, for a childââ‚¬â„¢s birthday party that is twelve years and below, we provide them with clowns, magicians, and simple events such as musical chairs for the kids. For birthday party of the adults, sixteenth birthday would be a great example, this company provides disk jockey (DJ) to have some music, this company provides the state of the art lighting service, and more. For parties that this company plans for a wedding is small games for the groom and the bridegroom. These games are chosen by our customers. The games that we provide are not only for the groom and bride groom but it is also for the people who attends the wedding ceremony.
1.4 Functional Structure
The organizational structure that had been chosen for this company is the divisional structure. This is because this structure has the simplest form of organizing people into different departments to prepare the necessary needs in the organization. The main reason of choosing this structure is that we could divide groups of people into department. For example; a group of people will be on the in the lighting department, a group of people will be in the music department, a group of people will be in the cleaning department and many more.
The advantage of having this structure is that the manager or the boss of this organization can easily see the process of network of the people working under them. It is easy to organize people in this structure in order to make things happen. It is also easy to control the employees or workers in this form.
The disadvantages are that if the company does not have enough workers the organization has to find for new fresh workers. The managers cannot just move employees from department A into another department B. This is because department A would be lacking of workers to finish work on time.
1.5 Illustration of Functional Structure
Foreman (cleaning department)
Work Scheduling Office
Site Operation Director
This structure Is really the best for all event managing companies. This structure helps a lot in dividing groups in various kinds of departments and making it so easy for the managers to manage the progress very smoothly without any problem.
The fear of facing the weakness of this company is sometimes very terrifying and it would not be as terrifying at times. The terrifying moment of weakness is when the company Is lack of workers at the last minute. that is really a bad news for this kind of organizational structure.
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