Example Essay on Establishing Organizational Structure


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.

In common, every organization or company have its own organizational structure. What is an organizational structure? Organizational structure can be defined as the process of systematically delegating power and authority among the employers in an organization or company. In an easy word, an organizational structure can be describes as the organization's framework. An organizational structure also consists of activities such as supervision, task allocation, responsibilities, communication and coordination that which are directed towards the achievement of the organizational aims. An organization structure affects organizational in two big ways. First, organizational structure will provide the foundation on which standard operating procedure and routines. Secondly, an organizational structure also determines which individual get to participate in which decision-making process and thus to what extent their views shape the organizational actions.

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To have an effective management, an organization should have a centralized organizational structure. When the organizational structure is centralized, it has a less span of control, east to coordination the employees because the orders or commands come from the top management and it has high bureaucratic control. What is span of control? Span of control is the term for the number of subordinate employees directly accountable to a manager. With less or narrow span of control, the manager only controls a fewer employees. For an effective management, an organizational structure should have a chain of command. Chain of command can be defined as ran order in which authority and power in an organization is wielded and delegated from top management to every employee at every level of the organization. The instructions are flow downward along the chain.A chain of command clearly lays out the responsibility and authority of an organization. For example, the order top management or Board of Directors will give order to the Chairman, then to the General Management, then to the manager and then the order will be deliver to the employees.

1.2 BODY

  As a D-Jeneration Event Management Company, we specialize in entertainment and leisure events. D-Jeneration Event Management is a newly form event management company. We have organised many event such as holiday events, mall show, concert, award ceremony and many more. Our event management team consists of specialize designer, decorators, master of ceremonies (MC), disc jockeys (DJ), pyro-technicians, soundmen, cameramen, and many more specialize men in our event management team. We also have specialized department in our company such as accounting department, floor management, designer department, technical department and many more.

What is event management? Event management is the application of a project management to the creation and development of festivals, events and conferences. Event management also involves studying the intricacies of brand, identifying the target audience of the event, devising the events concept, planning the logistics and coordinates the technical aspects actually executing the modalities the proposed of the events. Post-event analysis and ensuring a return on investment have become significant drivers for the event management industry. In the event management organizational there is an event manager. An event manager is the person who plans and executes the events. Moreover, event managers and their teams are often behind the scenes in running the event. Event managers also involved in more than just the planning and the execution of the event thus also brand building, marketing and communication strategy.

For our company to perform effectively, our company need a good and better organizational structure. Without a better organizational structure, our company perform will be low and there will be no communication and teamwork between different department in our company. There are four common organizational structures which are entrepreneurial structure, functional structure, divisional structure and matrix structure. Each organizational structure has its own functions.

Entrepreneurial structure has a clearly defined line of authority for all levels of management and has a highly bureaucratic procedure. Chief executive retains control over large or important venture of the organizational and there are other managers to carry out their roles in the relation to the chief. Functional structure divides the activities of the organization into different functional areas. Each functional area would have its own management structure and tis structure combines both hierarchical structure and centralized structure. Divisional structure will focus around a product or a geographical area. In this structure there is a division manager in each country that is responsible for day- to- day operating decision making. Matrix structure is a complex structure which involves multiple lines of authority, rather than hierarchal lines of commands. Matrix structure combines a functional based structure and a project- based structure and employees report to more than one boss.

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For my event management company I have choose the functional structure as my company organizational structure. Functional structure is the most appropriate organizational structure when an organization functions around only one product or services. Example of functional structure example would include organizations that have individually functioning units such as human resources, creative department, account and finance department, sale and marketing, advertising and many more. Functional organizational structure has a strong hierarch where the positions and functions of each of the employees are clearly specified. Therefore, the superiors and subordinates will have a particular function to perform toward the common goals of the organization. Below is the functional organization s structure of D-Jeneration Event Management Company.
























There are some advantages of having a functional structure as an organizational structure. The most important advantage of a functional organizational structure is that the functional structure is primarily based on intense specialization. What is the mean of specialization? Specialization can be defined as the separation of tasks within a system or an organization. With specialization work can be distributed easily and employees will have a clear career path on what work to do thus employee has the potential to grow within her or his department in the organization. Each department will have its own manger. Therefore, employees have to follow the order and report to their manager according to their department. Functional organization structure also minimizes duplication. It minimizes the work duplication.

Other department manager can give order to other department employees. Putting like specialities together result in economies of scales, minimization of duplication personnel and equipment, and satisfied employees. Moreover, when employees with similar or work are grouped together, they are likely to be more productive. Functional organizational structure will draw out only the best from each department. This structure also will provide and execute various projects to become simple because of the linear structure.

There are also some disadvantages of use functional structure as an organizational structure. The major disadvantage is employees may become isolated and have little understanding of what people in other department are doing and concern for the specialty areas outside of their own department. Employees is different department will be working separately from other department. There are also poor communication between department and employees in other department.

Since the functional structure is bureaucratic because of the rigid hierarchy, every decision is takes by the top management and takes time to materialize the decision. Moreover there are too much of specialization. The disadvantage of specialized is to approach to the functions in an organization is that the view point of every department is narrow and limited. This will not allow the organization to see the bigger picture and work efficiently towards a common goal. Narrowness can lead to barriers in communication, cooperation and coordination.


I have chosen functional structure as D-Jeneration organizational structure because functional structures are more systematic. Functional structure clearly shows a clear career path and clear path for employee from whom to take order and to who to report according to their department that there are work in. Functional structure also divides the activities of the organization into different functional areas. Functional structure also minimizes the duplication of personnel and equipment, and also satisfied employees.

The disadvantage of the functional structure can be counter. The disadvantage of functional structure is employees may become isolated and have little understanding of what people in other department are doing and concern for the specialty areas outside of their own department. Employees that works in other department should be work together or helpother colleague who works in other department. By helping them, the employee also can gain knowledge about work in other department thus communication can happen between employee efficiently.