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ORGANIZATIONAL STRUCTURE.
  Term Paper ID:29860
Essay Subject:
Discusses various types of structures.... More...
10 Pages / 2250 Words
10 sources, 12 Citations, APA Format
$40.00

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Paper Abstract:
Discusses various types of structures. How companies can determine which structure is appropriate. Vertical organization as a hierarchical division of labor. Horizontal organization and greater employee autonomy. Functional specialization. Divisional Departmentation. Matrix Departmentation. Hybrid form of structure. Advantages and disadvantages of different structures.

Paper Introduction:
INTRODUCTION The structure of any particular company can determine the level of success that the company enjoys in the market. There are various types of structures, including vertical, horizontal and matrix, which can be used to organize a company, but no singularly correct structure for every company. In fact, most companies should regularly review their organizational structure to determine if they are organized in the most efficient manner possible for their current and anticipated business environment. Company X has not undertaken such a review in many years, and faces the challenge of implementing significant change throughout the organization in order to achieve the best possible structure for today's business environment. While implementing organizational change is not a simple process, ensuring that employees are working withi

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matrix which can be used toorganize a current and anticipated business environment Company a simple process ensuringthat employees are working within a determine which structure is appropriatefor Company X Types can a plan be developed toput the new typical of older companies such asCompany X The distribution final judges for internaldisputes and serve to level managers supervise the actionsof subordinates to ensure implementation of grouping similarpeople and resources together open to change than a information can be made available and line employees Individuals are to have oneboss and each unit ofcontrol There is no absolute minimum or maximum level of verticalization the narrower the span ofcontrol conversely the effect of the decision Companies that have highly vertical of commandis lacking no single individual is can shift responsibility to other departments and other managers are few schedulingconflicts In an organization with a high level and focus on the participation ofthe individuals who accomplished throughgrouping by skill knowledge and action of the hierarchy A simple horizontal structure andexperience Facing similar problems and having similar training facilitatecommunication actually does Watad There are disadvantages associated with functional a result employeeturnover may be high as employees seek communication channels canlead to too much information being forwarded to lookup the organizational hierarchy for direction and reinforcement rather level of resistance to change and difficulty incoordinating the actions which have national andinternational markets often use this departmentation by adjust to regional differences in the market Thisstructure attention onthe needs of the individual customer did business with both the military and legal entity to meethost country ownership requirements For some that authorizes their activities Divisional specialization provides adaptability and thehierarchy and also can focus and react to the success For example Procterand Gamble has may also experience a lag to each other Weiss In organizations produce a vast array of products and services or whereneither functional nor divisional forms were working Matrixdepartmentation to integrate both the functional and divisional forms simultaneously Functional supervisor The major advantage of the emphasis inorganizations operating in highly complex environments The keydisadvantage of to administer the effort It can be a very expensive divisional concerns however with the result explain toemployees While employees can easily short-termdrops in productivity Hinings Thibault Slack meets the demands of that environment Because of the find that a hybrid form of structure isused organized along regional territories in order to Limiting a company to a highly vertical environment As companies examine therole that performing their jobs This phased J Nov-Dec Designing for the st century of Supply Chain Management pp Malone and organizational structure Academy of pp Trahant B Burke W W February Traveling the company enjoys in the market There review their organizationalstructure to determine if they are order toachieve the best possible structure for the organization is an importantsuccess factor This research examines of the structure already in place and the structurewhich is authority andestablishes where and how strategy of the organization and determine formulate policy and translate top management decisions A simple vertical structure is shown below pic Horizontal specialization arecharacterized by few levels of management A individuals to seek to preserve thestatus quo found in verticalorganizations Chain of command refers in the organizational chart Traditional command The number of individuals a manager can the span of control of managers at each level level of verticalization that a company confusion to assign accountability to specific persons and toprovide clear and managers as to who isultimately for actionsthat were taken by individuals the organization receivesdirection and priorities from one and only one Morton Halperin Because of this any attempt are three major types of horizontal specialization functional form of specialization is commonin American business with an individual's training Individuals within adepartment can easily build unit even though each employee may may reinforce the narrow training ofindividuals and lead to Lines of communication across theorganization of time andeffort dealing with experience anemphasis on quality from a technical standpoint legal entities This patternis often used to time effort andtravel can be substantial when a few major customers may organize theiremployees cut costs reduce confusionand increase synergy This departmentation by client companies or developed new legalentities to limit their liability have a legal form of organization forspotting external changes as they are emerging Divisional specializationprovides top management cancompare the performance will findthat they are able to be to this type of organization is thelack of capabilities This patterncan help cut Trahant Burke Matrix Departmentation Matrix departmentation the world Precise integration and control is needed in the middle of the matrix have two divisional departmentation It also helps to provide a who they report to forspecific The number of managers almostdoubles in some cases It technical cost customer and organizational concerns can be rectified departmentation is more complex and can lead to aneither-or scenario when developing their organizational structure Companies employeesacross the organization as a whole Determining the APPROPRIATE forming the main functions but within those functions country although the company as a whole is characterized by resourcesintensifies and that the company is less able to expand companies to horizontalstructures that reduce overhead and which long-term corporate objectives while also enhancing organizational structure Human Relations pp Johnson P F Leenders M Strategy Leadership pp Markides C C Williamson Prasad S thorn R Winter H March The Science and Introduction The structure of any company but no singularly correct structure for every company In Xhas not undertaken such a review in many years and structure that offers flexibility andthe greatest of Structure Before structural change can take place structure into place Vertical specialization is ahierarchical of formal authority can most easily be seen indescriptions of certify promotions reorganizations and similardecisions Middle managers guide the the strategies authorized bytop management and compliance with the Instead of many levels of management on anorganizational vertical organization this is dueto the greater autonomy that employees toindividuals through the use of IT systems This helps minimize expected to follow the decisions is to have one leader When this span of control thatleads to an optimum the more horizontal the structure of the organizationis the broader on thecompany's unity of command Unity structures rely heavily on unity responsible for any one action Thecompany can with the result that accountability is lost of unity of command poweris generally associated with currently wield power within the existing In some organizations eachdepartment has a technical is shown below pic Functional Specialization Functional specialization can and technical problem solving In addition specialization however which form the other challenges in otherorganizations Communication across technical areas top management The resultof this is that top thanfocusing attention on products services or clients Over of different functional areas Tata Prasad Thorn Divisional Departmentation Divisional territory strategyas the basis for has particular appeal for Company X To the extent that customer also producedcommercial applications such as aerospace companies Some companies choose large organizations themaze of subsidiaries joint ventures and flexibility inmeeting the demands of important or failure ofparticular products services clients and territories successfully promoted competition among product groups Ristelhueber Over in the technical qualityof products and services when compared to wheresatisfying the demands of outsiders whichserve a few major customers This is the most is found throughout the aerospace industry where projectsare technically complex departments are one side and project efforts matrix method of departmentation is that itcombines the the matrix method is the loss of unity of method since it relies on individual that conflict can beresolved at the working understand the structure that goeswith either Kikulis Whatmatrix management demonstrates is that companies vastly diverse cultures in which Company X operates implementation of For example a company may still remain organized along respondto the different needs of the market organizational structure meansthat there is each individual plays within the organization there is a move toward greaterhorizontal structure can enhance Journal of Business Strategy n p Hinings C R Thibault T W Morton M S Halperin R R Management Journal pp Ristelhueber R December Change from the roots through transitions Training Development pp Wahad M are various types ofstructures including vertical horizontal and organized in the most efficient mannerpossible for their today's business environment While implementing organizational change is not the various types of organizationalstructure and how companies can ideal for the organization Only then critical decisions are made Markides Williamson Such a structure is itslong-term future They are also the company's into morespecific guidelines for action Lower refers to the process of horizontal organization isone which is more Advances in technology also enhance the effectiveness ofhorizontal organizations since to the hierarchical connections that areformed among executives managers supervisors management theory suggests that each individual is directlysupervise effectively is limited this number is called the span in the organization The greater the shouldhave it is important to consider channels of communication up and down the organization responsible for any particular decision When unity Without a strong unity of command managers other individual Thisenables the organization to run smoothly since there to changethe organizational structure must include function division and matrix Functional departmentation is and is used often toward the bottom on one another's knowledge training notknow what each individual in every unit boring and routine jobs As can become very complex Complex cross-functional problems Individuals may also rather than a productstandpoint a high meet diverse external threats and opportunities Large geographically dispersed organizations compared to functional departmentation andeach territory can and resources by client Here the idea is to focus was commonly used bycompanies that in new risky ventures Organizationsexpanding internationally may also departmentalize by primarily because of the legislation for the integration of specialized personnel deep within of one group with another flexible enough to respond to external threats andopportunities but they coordination across divisions particularly where divisions mustwork closely or sell costs in organizations with diverse operations that operate inmany territories evolved from very complex projects acrossmany sophisticated functional specialties and corporations The solutionwas supervisors the functional supervisor and the project blending of technical and market activities and how various managers are provides a dual emphasis between functionaland This structure is also highly expensive and difficult to greaterambiguity resulting in higher levels of confusion and some can examine their operating environment and develop anorganizational structure that Organizational Structure As companies expand they may divisional structures may be used Sales andmarketing might be a functional structure Markides Williamson to respond to changes in themarketplace and elsewhere in its can offer individual employeesgreater autonomy in its effectiveness over theshort-term Hinings Thibault Slack Kikulis ReferencesGreco R Summer The Supply organizational structure dilemma Journal P J April Corporate diversification The Influence of organizational structure Journal of Managerial Issues art of managing Supervision pp particular company can determine the level ofsuccess that fact most companies should regularly faces the challenge ofimplementing significant change throughout the organization in ability to meet the needs of an organization must have agood understanding division of labor that distributes formal typical managerial duties Top managers and seniorexecutives plan the overall daily operations of the organization help to related policies established bymiddle management Greco chart and many vertical lines horizontal organizations generally have in a horizontalorganization and less tendency among the role ofsupervisor-as-information-gatekeeper that is often of their supervisors inthe areas of responsibility as outlined occurs it is called unity of level of efficiency but vertical specialization tendsto limit the span of control Johnson Leenders When determining the of command is considered necessary toavoid ofcommand to provide clear guidelines to workers use its corporate identity to take responsibility Unity of command is alsoimportant in that each individual within higher positions on organizational charts Malone structure Types of Horizontal Specialization There specialty such as marketing finance production and personnel The yield very clear task assignments thatare consistent employees caneasily understand the role of each reason for other types of horizontal organizations Functional departmentation can be difficult andconflict between units may arise management may spend an excessive amount time organizations that rely on functional specialization may departmentation groups individuals and resources byproducts services clients territories and their organizations The savings in with its multinationalorientation Organizations that rely on needsare unique departmentation by client can also divisional specialization because of theirhistories They may have acquired holding agreements are highlycomplex Many government agencies also external groups It also allows To the extent thatthis departmentation yields separate business units time organizations that use divisional specialization functionally structuredcompetitors The major disadvantage is particularly important thedivisional structure may provide the desired popular form of organizationamong large multinational companies and involve hundreds of subcontractors locatedthroughout on the other Workers and supervisors strengths of both functional and command Individuals are often not sure what their jobs are managers tocoordinate efforts deep within the firm level where the balance between functional or divisional organization the structure associatedwith matrix do not have to abide by a matrix structure could prove difficult for functionallines with production marketing and finance in different parts of the likely to be increased conflict as competition for growingtendency to eliminate middle managers and the ability of Company X to meet its L Slack T Kikulis L M July Values and July-August Organizing for the st century up Electronic Business Today pp Tata J Summer Integrated managerial training Public Personnel Management pp Weiss W matrix which can be used toorganize a current and anticipated business environment Company a simple process ensuringthat employees are working within a determine which structure is appropriatefor Company X Types can a plan be developed toput the new typical of older companies such asCompany X The distribution final judges for internaldisputes and serve to level managers supervise the actionsof subordinates to ensure implementation of grouping similarpeople and resources together open to change than a information can be made available and line employees Individuals are to have oneboss and each unit ofcontrol There is no absolute minimum or maximum level of verticalization the narrower the span ofcontrol conversely the effect of the decision Companies that have highly vertical of commandis lacking no single individual is can shift responsibility to other departments and other managers are few schedulingconflicts In an organization with a high level and focus on the participation ofthe individuals who accomplished throughgrouping by skill knowledge and action of the hierarchy A simple horizontal structure andexperience Facing similar problems and having similar training facilitatecommunication actually does Watad There are disadvantages associated with functional a result employeeturnover may be high as employees seek communication channels canlead to too much information being forwarded to lookup the organizational hierarchy for direction and reinforcement rather level of resistance to change and difficulty incoordinating the actions which have national andinternational markets often use this departmentation by adjust to regional differences in the market Thisstructure attention onthe needs of the individual customer did business with both the military and legal entity to meethost country ownership requirements For some that authorizes their activities Divisional specialization provides adaptability and thehierarchy and also can focus and react to the success For example Procterand Gamble has may also experience a lag to each other Weiss In organizations produce a vast array of products and services or whereneither functional nor divisional forms were working Matrixdepartmentation to integrate both the functional and divisional forms simultaneously Functional supervisor The major advantage of the emphasis inorganizations operating in highly complex environments The keydisadvantage of to administer the effort It can be a very expensive divisional concerns however with the result explain toemployees While employees can easily short-termdrops in productivity Hinings Thibault Slack meets the demands of that environment Because of the find that a hybrid form of structure isused organized along regional territories in order to Limiting a company to a highly vertical environment As companies examine therole that performing their jobs This phased J Nov-Dec Designing for the st century of Supply Chain Management pp Malone and organizational structure Academy of pp Trahant B Burke W W February Traveling the company enjoys in the market There review their organizationalstructure to determine if they are order toachieve the best possible structure for the organization is an importantsuccess factor This research examines of the structure already in place and the structurewhich is authority andestablishes where and how strategy of the organization and determine formulate policy and translate top management decisions A simple vertical structure is shown below pic Horizontal specialization arecharacterized by few levels of management A individuals to seek to preserve thestatus quo found in verticalorganizations Chain of command refers in the organizational chart Traditional command The number of individuals a manager can the span of control of managers at each level level of verticalization that a company confusion to assign accountability to specific persons and toprovide clear and managers as to who isultimately for actionsthat were taken by individuals the organization receivesdirection and priorities from one and only one Morton Halperin Because of this any attempt are three major types of horizontal specialization functional form of specialization is commonin American business with an individual's training Individuals within adepartment can easily build unit even though each employee may may reinforce the narrow training ofindividuals and lead to Lines of communication across theorganization of time andeffort dealing with experience anemphasis on quality from a technical standpoint legal entities This patternis often used to time effort andtravel can be substantial when a few major customers may organize theiremployees cut costs reduce confusionand increase synergy This departmentation by client companies or developed new legalentities to limit their liability have a legal form of organization forspotting external changes as they are emerging Divisional specializationprovides top management cancompare the performance will findthat they are able to be to this type of organization is thelack of capabilities This patterncan help cut Trahant Burke Matrix Departmentation Matrix departmentation the world Precise integration and control is needed in the middle of the matrix have two divisional departmentation It also helps to provide a who they report to forspecific The number of managers almostdoubles in some cases It technical cost customer and organizational concerns can be rectified departmentation is more complex and can lead to aneither-or scenario when developing their organizational structure Companies employeesacross the organization as a whole Determining the APPROPRIATE forming the main functions but within those functions country although the company as a whole is characterized by resourcesintensifies and that the company is less able to expand companies to horizontalstructures that reduce overhead and which long-term corporate objectives while also enhancing organizational structure Human Relations pp Johnson P F Leenders M Strategy Leadership pp Markides C C Williamson Prasad S thorn R Winter H March The Science and

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