Four Types of Organisational Structure Essay

Organising is therefore the method by which an face is formally controlled into characters or operational units and the social mental synthesis of the firm is established. The end reaping of management process is faceal structure. Organisational structure binds the all train of management personals together and lets them into proper development and co-ordination of organisation. It is tasks ar ordinatement which is break up into a few divisions or departments and grouping it together under the management hierarchy to achieve the organisation objectives.Under the organisation structure, integrity single path allow progress to to attach the tasks, hammer flow and talk carry surrounded by the personals and the various divisional peoples of organisation. Organisation structures smooth the progress of efficient management, direction and control. Every administration has to stigmatize up its possess organisation structure for well-organized perform of dividing make actio ns. An organisation structure usually appoint in graphical form which is called an organisation graph.Usually, the chart illustrated in the form of vertical, horizontal or homocentric to define the authority and responsibilities of personals in various levels. The chart always created according to the existing departmentalisation of organisation. In departmentalisation, apiece personal from different job segments give lend to achieve an aim of pre-determined organisational objectives. The departmentalisation is based on five-spot structures, which is functions, productions, consumers, geographical and intercellular substance.In these papers, we lead go through the justification of four structure which is function, product, geographical and matrix with sample organisational chart on each structure. Sample Organisation Chart of Functional Structure. Source SIA loading Pte Ltd Functional organisation structure is the most common and logical type of occupancy unit that tie by companies. In this structure, people are group together based on common skills and work activities. It accentes on single expediency and doesnt gather up frequent changes in organisational hierarchy.Base on higher up organisational chart, we can notify that the total organisation system is coordinating by circus tent management. For a serious management function, the organisation breaks up into a few departments such as marketing, engineering, technology, operational and etc. to each one departments depart by a senior manager or vice president who are report to a single authority, elapse management. As the simplest approach, a operateable structure sort well-defined channels of communication and influence relationship.Each departments staff needs to report to their only functional units manager and by doing this, the various business units prevent all kind of misunderstanding or conflicts among them. The chart hierarchy is simplified, well-coordinated and the separatio n of tasks alike well defined with bed by layer. The fewer layer of management will ease the expectation of top management and besides improve the task co-ordination. Decision making process is swift and authorities in functional structure.Beca procedure of the staffs in functional structure come from similar background and perspectives, so it wills faster the process of the decision-making without waste of time. Since the each business units in structure workout in similar background, it readiness cluster the processing of the papers together and highly improving the knowledge sharing between co-workers. Sharing knowledge make the organisation more(prenominal) productive and competitive where the realize personals such as managers often coaching and mentoring the less experience personals of each units through seminar or workshop.Functional structures produce clear career hierarchy organisation members to go after. Managers within a functional structure are generally skilled within their particular unit. They were hiring to give way the units due to their tremendous performance. These managers take on a get around-quality skill level that facilitate make their profession easier and makes them fall apart capable of to monitor the individual act of their team members to apportion credit, rewards and penalty accordingly. A functional structure may draw some setbacks to organisation. It controls people and assets and build up core competences.As a political party develop and becomes more difficult, each function tries to retain the bon tons situation. Increased order may strain manufacturing to manufacture products quick enough or in sufficient capacity may lead to control problems. When control problems arise, it as well as strains the situation in evaluating the cost and contribution of each function. Other drawback is communication problem. Poor communication occurs within the organisation due to subunit orientation. The top management find it weighed down when balancing the process of decision making between centralise function and regional managers.The top managers might disrupted by solving a daily problems and may loss focus on ache term strategic issues, resulting in long term strategic direction. Sample Organisation Chart of geographic Structure. Source SIA Cargo Pte Ltd Geographical organisation structure is usually used by big firms whose trading operations are spread out over a large geographical area, for instance, multi subject companies which market their service worldwide. Hotel, retail, food and transportation are among the industries which is widely using the geographical structure in their management.The whole organisation will lead by a president and one person will be answerable for an each particular region. According to above SIA Cargo chart, business units were set up at sixer different geographic locations and each regional subsection head by Regional Vice President. The branch Vice Presidents w ill report to Senior Vice President. The expansion of business units can be local, national or international. In geographical structure, the organisation stick on company strategies and value although operates individually. It operates as its own unit based on where it located.In this structure, each force play from various departments have prospect to work together. Working as a group will form a strong teamwork effort and march on them in the process of planning and decision making. Beside this, everyone in the departments will have an ability to recognize the personalities and values of each individual. Close working proximity lead to decentralise the process of decision-making and make organisation to manufacture in rapid changes in divisional goals. In each region, a local or personnel department who familiar with local business environment and culture will be employ to head the business units.It ensures that the company well understand the customer expectation and needs. Ba se on local knowledge, the departments heads able to create a high coordination and effective process of decision making across the functional units. The regional heads ensures the company strategies adaptable to local culture and suit to fast change in unstable environment. In divisional structure, usually the departments act as a group. It allows the responsible personnel to put on break out focus in their resources and results. It also makes the performance easier to monitor the customer service quality.A personal that understand and pronounce the local language, will satisfy the customer expectation because the contact points are clearly explain. Customer service personnel will also have better access to personnel from opposite units, which can allocate them to handle the customer matters much more efficiently. With geographical structure, following the routine of individual markets and task groups is reduce down, as metrics such as revenues, profit margins, costs, and routi ne enhancement can be abandoned to particular regions. It is a most important strategic advantage of this structure.Many problems might incur for the companies whom use geographical based structure. Some companies may find it complicated to run a geographic organisational structure because it duplication of works and disagreement to centralized decision-making. The top management must rely on other regional heads to take counteractive actions and look up operations rather than giving a command from the companys main office or headquarters. It may lead the company top management loss the authority in controlling the divisional units. Another limitation is expansion of knowledge.Usually, the structure does not maintain the knowledge sharing between people working in the same air of work because part of them is working in one division and the others are working in other divisions. Sample Organisation Chart of Product Structure. Source Arla Foods Ingredients Above chart is an Arla Foo d Ingredients organisation chart. The chart is a product based organisation structure. Product-based structure means the regrouping of a functional structure and uses to organise employees and work on the basis of different type of products.This type structure brings together all those touch in the production skills, technical skills and marketing skills of a particular product or set of connect products. Each division in structure has its own internal departments and function as self business unit. Companies that manufacture a wide variety of products such as cars and foods would find this type of structure grant to their organisation. Many companies tend to shift to product based structure as they expand, and as new products range are developed and new markets entered.Product based companies have no direct contact with their customers. Initially, they need to assess the market segments and develop the product from their assessment. Follow that, they must determine the price of products in line with the customers expectation and produce the products to sell in the market. Product based structure is also have a similar function as geographical structure. In Arla Food Ingredients, both product structure and geographical structure group together in the organisation. It will add much better clear focus on market segments and help to meets the customers expectation.Each division of products will be operates base on individual performance. It keeps up the positive competition between the divisions and allows the directors or managers to have better be in command of each division can act as reveal profit centre. In this structure, division members are more likely to be persistent on products. It deals with the proficient transform by grouping personnel with skill and their specialised equipment in one business unit. So, the division heads have a lot of control over operations and will not necessary to count on on another, separate area to get things done.The d epartment managers will keep an eye on design and manufacturing activities, and employees become reliable to product not to function. It also allows the managers and employees to improve and expand their skills and knowledge in the organisation. The customisation of more products into division will lead to save time and cost. Decentralisation of process of decision making will facilitate rapid decision making results with effectively. It will reduce the risk of product failure and also bring on improvement in employee morale due to divisional decision making.Instead of better operational controls, the organisation can avoid the poor communication within the personnels which is bring to slow development of products. By the way, there is some limitation might happen when use the product base structure. An example, each product division has RD department. When product expansion incur, number of personnel in RD will increase. This increment will happen to each product divisions. So, it will lead to duplication of works and increase the costs of staffs. Since the divisions separately monitor, the difficulty might happen to top management to coordinating them together.