Introduction to Organization Structure

Introduction to cheekal social construction An disposal grammatical construction refers to an arrangement of mass, kind and responsibilities in carrying out fellowship activities to achieve goal. In addition it in like manner stern define as how a people in the formation be assemblage unneurotic and to whom they report. Formal expression is acquireed for larger organization that decisions have to be made about the delegation of variant tasks. In an organization expression pull inly indicate and affiliate mingled with the cultivate activities which define by their job role.In good organization organise should explain the relationship of authority who reports to whom and for conductors, who reports to them. An organization social twist usu completelyy illustrated diagrammatically in an organization map. There be several types of organization twist such as operational organisational organise, geographic organisational mental synthesis, hyaloplasm o rganizational structure and result organizational structure. Functional organizational structure refers to a group of people in the organization or subdivision that hold uniform position and perform similar task. It likewise indicates that who describe to whom.The traditional way to of the organization, this is organizing people by function. A Geographic organizational structure is typically found in companies with operation spread oer a large sphere. This includes national and international off folderol. It allow for have inbred structure and coiffurement layers depending on each(prenominal) location. While hyaloplasm organizational structure combine devil or more types of organizational structure usually is product organizational structure and operational organizational structure to require a unique blend of work environment. growth organizational structure is the subdivisionalization free-based on product and.Employee work in distinction unit where by each unit holds the responsibilities of producing the product or service. This structure withal kn give birth as a division structure. Base on this organizational structure e very product structure pass on travel by by division. Each division pull up stakes amenable for each product. 1. 0 Functional grammatical construction According to OToole. S The term organizational structure refers to how the people in an organization are grouped and to whom they report. whizz traditional way of organizing people is by function. Some common functions at bottom an organization include production, marketing, human being resources and accounting.Base on this definition we can say that in structural structure employee are grouped together into department and hold similar position in any case perform similar task. Chief executive Director Human Resource theatre director finance Manager Account assistants Manufacturing Manager Engineering Manager HR ships officer FOL Manager EOL Manager experime nt Engineering Equipment Engineering HR Assistants payroll department officer supervisory program Supervisor Engineer Enigineer appurtenance 1. 0 judge of Functional grammatical construction for Company ABC Referring to above chart, it clearly shared out the task and responsibilities by function.Example for this follow has four main functions which are finance, human resource, manufacturing and engineering. Every department has a difference roles and responsibilities. Finance department snap on accounting and payroll, where by manufacturing can concentrate on consummation in order to deliver a good result by divided into two main focus which is FOL and EOL. Both were lead by rural area private instructor to ensure the efficiency of the result. For engineering department in like manner separate into two main foc economic consumptions, they are test and equipment engineering. Each 2 function plays a role in order to achieve the come with goal.Base on their talentedise th e result given will be very fast, efficiently and effectively. 1. 1 Advantage of Functional Structure The expediency of functional structure is employee can communicate and share information easily as they are grouping together according to similarities in their position. Beside that escalation process also can be d peerless fast as and effectively. In harm of management, especially motorcoach it easy for them to admonisher subordinate motion. Another profit of functional organization structure is coherent chain of command. For theoretical account, referring to above chart Account and payroll fall under purview of Finance department.A clear chain of command is needed, this is be give it raises standard operation procedures, besides established consequences also enhanced accountability. Another advantages of functional structure is it cans expedited decision qualification. This is because normally group decision making will slow d confess supercharge on device cod to the diverse perspectives involved. But in this structure because people have similar professional and educational background the decision making process will be much easier. In addition functional structure also allows work to be done by hooked and scientific disciplineed individual in the area concern.Hence, another advantage of this structure is that it cuts cost by reducing duplicate and use of resource in the organization. 1. 2 Disadvantage of Functional Structure Functional structure also have harm. The disadvantage of functional structure is because functional structure separate by function, as a result employee having a very myopic understanding or concern for other area instead of their own area. Because of this separation on that point is a barrier in communication and general cooperation and coordination. Beside that in this structure individual focus is rather than a company focus. 3 2. Geographic Structure Geographic structure often use by large company that operate in umpteen area. The main function of this structure is to co-ordinate the work and employee from difference unit and responsible for conducting business in current geographic locations. Each location will have its own internal structure and management layers, allowing them to run the operation. infra is geographic structure for Open University Malaysia. From the chart Open University Malaysia has divided the organizational base on geographic which is northern region, southern region, and central region, eastmost coast and Sabah and Sarawak.Each region will cover certain state in Malaysia. For Northern region it covered Perlis, Kedah, Pulau Pinang and Perak. For southern region represent Johor, Negeri Sembilan and Melaka. Kuala Lumpur and Selangor is in central region. For Kelantan, Terengganu and Pahang indicate as East sliding board area. Last area is Sabah and Sarawak region that cover Sabah and Sarawak. Headquarters can easily monitor the performance of each area and might not need to go through and through every single state to check on the academic progress or action at law happened at the particular centre. Open University MalaysiaNorther n region Perlis Kedah Pulau Pinang Souther n region Central region Kuala Lumpur Perak Negeri Sembilan Melaka Selangor East Coast Kelantan Terengganu Pahang Johor auxiliary 2. 0 Geographic Structure of Open University Malaysia 4 Sabah Sarawak Sabah Sarawak 2. 1 Advantages of Geographic Structure The advantages of geographic structure are cost saving. By locating resource close to customer it will help organization to reduce the cost such as travelling expenses. Using a geographic structure allows companies to use local, experienced individuals to run the companys operation.This is the most beneficial in international locations, where companies need help transitioning their trading operations to specific international markets. 2. 2 Disadvantages of Geographic Structure There are some disadvantages of geographic structure such as companies may ascertain it difficulties to run this because it does not allow for centralized decision making. Another disadvantage is that it creates duplication of work also the use of the organizations resource. Hence, due to the geographical area that located far from each other it will create the difficulties in coordinating between departments in organization. 3. 0 matrix Structure Matrix structure refers to a hybridizing structure that combines two or more departmentalization together at one time to create a unique blend of work environment. commonly matrix structure is a combination of product and functional structure. This structure created when there is an subsidisation or offer need to carry out. In this structure employee are reporting to two difference supervisor or manager. This is the differences of matrix structure from other structure. Example is several engineer might be chartered carry forth a similar function by pooling in their expertise .In addition, a single company producing two types of product with the same team up in professional. For effective and smooth functioning, it is mandatory to share the information in matrix structure. Each throw up will have a find manager and difference team members will report to him. The matrix structure, if utilize effectively, may ontogeny the ability to react the tonic customer demands. It also may potentially decrease lead times of new product. Usually employee involve in this structure have to report to 2 manager which is immediate manager and also project manager who is the person to monitor the progress of the project.When work is accomplished, the project team may get dissolved, and the workers from unlike functional areas may get reassigned to other project and task. Chief Executive Director Human Resource Manager Finance Manager Manufacturing Manager Engineering Manager Division of project manager FOL Manager Test Engineering manager Project manager Account assist ants 1 payroll department officer 1 HR officer Account assistants 2 payroll department clerk HR Assistants Account clerk Supervisor 1 Supervisor 2 Engineer HR clerk Legends The hilted boxes represent staff busy with project. Appendix 3. Sample of Matrix Structure of Company ZZZ 6 Appendix 3. 0 represent matrix structure for company ZZZ. From the chart there is a project conduct by project manager from project department. To ensure this project success the project has involves staff from other functional structure such as finance, human resource, manufacturing and engineering. For this structure usually employee need to get agreement from immediate manager before they can proceed, this is because it will seismic disturbance their regular job and employee also must has a inexpugnable commitment and dedicated to perform the task.There is an prospect for them to learn a new thing that not in their job scope. The staff involve in this project will report to 2 manager which is proje ct manager and their immediate department manager. Progress of the project will monitor by project manager while their immediate manager play a role to encourage the employee to perform the task with professionally. 3. 1 Advantages of Matrix Structure The advantages of matrix structure are allowing the organization to effectively and efficiently manage the project that is large scale and complex.The specialized employee can be chosen base on the merit of their work and functions that they carry forth. Involving in this structure will give chance to employee to success because of the work load and a lot of difference thinking forces is working on the project and and so the stress, authority and problem solving skill become stronger. Another advantage of this structure is a cost saving. This is because the people working in the project is hired as a part one team also work under other teams.Meaning to say that the employee involve in the project will do the 2 difference job at one t ime. In addition this matrix structure will provide opportunity for both functional and product skill development. Thus it will reduce barriers between departments and increase the integration of functions. 3. 2 Disadvantage of Matrix structure Even though there are advantages of matrix structure, there is certain disadvantage as well. The disadvantages of this matrix structure are requiring higher direct of management skill compare to other type of departmentalization.It will impact the company in terms of increasing cost if there is a lot of project manager hired for the job. Another disadvantage of matrix structure is increased conflict levels. This structure also may cause participants to experience 7 dual authority, which can be confusing and frustrating. rattling important in this structure is require participant to have a very good interpersonal skill. 4. 0 Product Structure Product structure define as an organization base on organizing employee and work in difference units , while each unit hold responsibleness of producing a product or service.For example if company produce 4 difference products, there will have 4 difference divisions for these product. under is a sample of product organization. In other words product structure divides the company into divisions that bring together those employee involved with a certain type of product or market service. Chief Executive secretaire Product Division Division A Beverage Division B Ice cream Engineering Division C Training Manufacturing acquire Division D Cereal Milk powder Infant 6 years plus 3 years plus Adult Appendix 4. 0 Sample of product Organization of Company XYZ.Referring to above chart from company XYZ can see that this company has produce 4 products which is beverage, ice cream, cereal and milk powder. For each product will have a difference division to simplicity. Each division within a divisional structure contains all the necessary recourses and function within it. 8 4. 1 Advantages of Product structure The advantages of product structure is company has a unwrap control for the product as each product has manage by difference division and each division can act as a separate profit centre. Hence, this structure also can create a positive competition between divisions.As every unit own and produce a difference product it will allow manager and employee to expend their expertise and experience that are related to the overall activity of the product. Beside that these structures also allow management to evaluate the work performance of each division easily. Another advantage of this structure is, because of clear focus on market segment it help to meet customers needs. 4. 2 Disadvantages of Product Structure Product structure may also have some disadvantages. For example manager may only focus on their product to the elimination of the rest of the organization.Due to each product having own functional area expert it may lead to increasing in cost. Beside that will have duplication in terms of process and material also will increase the company cost. Management may facing difficulties to coordinate across department also one of disadvantage of this structure. 5. 0 Conclusion In closing organization structure is important as it is a system that control and drive company performance to achieve goal. Difference structure has a difference functions, but the objective is the same which is to ensure company campaign with smooth and achieve the goal.Functional structure is a basic structure and it applies for all organization. It still relevant and can be use for any company and organization. Geographic structure is mostly use for multinational company which has many branches at other country. It also applicable for domestic company and organization such as Open University Malaysia. Matrix structure is a hybrid structure that required commitment and skill especially interpersonal skill to perform the task. For product structure basically is a organ izing people base on the product.