An organization with few layers has a wide span of control, with each manager overseeing a large number of subordinates; with a narrow span of control, only a limited number of subordinates reports to each manager. The structure of an organization determines how the organization will operate and perform. One way of structuring an organization is by division. With this structure, each organizational function has its own division. Department of Energy organization chart: The DOE organization chart shows a divisional structure with different divisions under each of three under-secretaries for energy.
Each of the three divisions is in charge of a different set of tasks: environmental responsibilities, nuclear-energy responsibilities, or research responsibilities. Each division can correspond to products or geographies of the organization. Each division contains all the necessary resources and functions within it to support that particular product line or geography for example, its own finance, IT, and marketing departments.
Product and geographic divisional structures may be characterized as follows:. In a functional structure , a common configuration, an organization is divided into smaller groups by areas of specialty such as IT, finance, operations, and marketing. Communication generally occurs within each functional department and is transmitted across departments through the department heads.
Functional structure at FedEx: This organizational chart shows a broad functional structure. Each function e. Functional departments are said to offer greater operational efficiency because employees with shared skills and knowledge are grouped together according to the work they do. Each group of specialists can therefore operate independently, with management acting as the point of cross-communication between functional areas. This arrangement allows for increased specialization.
One disadvantage of this structure is that the different functional groups may not communicate with one another, which can potentially decrease flexibility and innovation within the business. Functional structures may also be susceptible to tunnel vision, with each function seeing the organization only from within the frame of its own operation. Recent efforts to counteract these tendencies include using teams that cross traditional departmental lines and promoting cross-functional communication.
Functional structures appear in a variety of organizations across many industries. They may be most effective within large corporations that produce relatively homogeneous goods. Smaller companies that require more adaptability and innovation may feel confined by the communication and creativity silos that result from functional structures.
The matrix structure is a type of organizational structure in which individuals are grouped by two different operational perspectives at the same time; this structure has both advantages and disadvantages but is generally best employed by companies large enough to justify the increased complexity. In a matrix structure, the company is organized by both product and function.
It helps people find information and items faster, and it allows groups to work together without wasting time. Organization is important for dealing with information as well. When items are organized, finding them is easier, and the time is takes to organize a home or office will save time that would otherwise be spent searching. Organization is an important part of logistics; warehouse management deals with ensuring that everything is stored in a designated location.
Efforts to reorganize items can lead to time saved as well. Organization also deals with ideas and abstract concepts, and it is related to categorization. Human Organization: It is the appointment of qualified staff and assigning them different duties and responsibilities for the sake of business organization interest.
Organizations also give them enough authority to perform all their duties and responsibilities smoothly. No business organization can be defined as the process of establishing effective cooperation among different people to achieve certain goals to earn a profit. A business organization can be formed to serve people and known as a non-profit organization.
After the Industry Revolution, the scope of business organizations has largely extended. The role of business organization in various forms of business is discussed in brief In this form of business, due to the simple structure of an organization, the entrepreneur brings his own capital. He is an organizer, operator, controller, decision-maker, financier, and above all, responsible for all the success and failures of business. In this form of business, according to the agreement, each partner introduces capital, Management and labor.
In the management, partners decide among themselves to which partner can be suitable for taking part in the affairs of the business. As the partnership business is running on a small size, the business organization structure is very simple.
In this form of business, the work of the organization started even before its amalgamation by the promoters. This work of organization continues after amalgamation.
Responsibilities are prepared on organizational chart and duties of the personnel employed are defined, procedures are laid down. The scope of this form of business organization is quite wide and complicated. All business activities directed towards the production of goods and services in the betterment of the business organizations. Organizations play a vital role in the efficient use of factors of production and other resources and thus reduced the cost of production of goods.
A good organization provides for the optimum use of technological improvements. It stimulates independent creative thinking in various departments of production. Another importance of business organization is that it is very useful in providing skilled salesmanship for satisfying the various needs of the customers. The business organization makes it easy to take quick decisions.
The recognition of the problem, selection of the solution, issuing of the necessary orders can be taken at the right time. One of the most important things of business organization is that fixing of responsibility can easily be pinpointed.
An organization makes it possible to take decisions at the right time about production and thus may take feedback.
0コメント