Organization structure Functions Culture and Performance

1438 words (6 pages) Essay in Business

5/12/16 Business Reference this

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Organizational structure defines the way and extent in which roles, powers and responsibilities are delegated to whom, how it is controlled and co-ordinated and how the information flows between different levels of management. It refers to the pattern of relationships among individuals and department in an organisation.

Organisation structure is classified on the basis of various activities, which are grouped together, to create departments and units; and defining their relationships within the organisation. There are different kinds of organizational structures which include hierarchical, flat, matrix, line and staff, decentralised and divisional organization structures. (What Is An Organisation Structure?)


Flat organisational structure is a modern approach where many employees report directly to the same boss.

It reduces the levels of management.

It widens the span of control of management at various levels of organisation.

It is more decentralized with regard to decision-making.


More delegation of authority

More transparent and clear policy

Development of managers for higher positions because of their initiative & authority to make decisions.


Tendency of overloaded superior to become bottlenecks in decision making.

Requirement of highly trained managerial personnel.


There are 6 key functions which every organisation has to perform such as:

Designing and Production

Sales and Marketing


Human Resources


Research and Development


Finance is the blood of an organisation. Finance department keeps manual/electronic records of capital invested, borrowed and outstanding in the market. It produces various financial statements for tax purposes, legal formalities and audit practices. It administers employees’ salaries, pension, loan repayments, etc. This information helps management in devising new business strategies.


Recruitment, selection, training and development of staff are the prime functions of human resource department. This department helps employee to use their maximum work efficiency in achieving organisational objectives. It also looks after employees, their health and wealth.


The sales and marketing department focuses on customer’s needs and implements strategies for higher sales on the basis of demographic environment of the selected region. It emphasizes on the sales target assigned to them as well as on the after-sale services.


The aim of research and development department is to make new features in the existing products, creating new and better products, improving production methods, and creating effective processes. It enables the organisation to cut down the costs, increase profitability and remain ahead of the competition. (Organisational Functions )


All management functions are independent, yet interdependent and hold its own importance to complete a job or task. Capital or Finance is essential to start or run an organisation but without manpower we cannot operate the organisation, so there is a cycle or supply chain process to complete a task in given lead time. All departments perform together to achieve a specific goal. Production department coordinate with designing department as well as vendor management department, finance department provide capital to purchase raw material. At the same time, human resource department provides the workforce to accomplish a specific job. On the other hand, departments like marketing and sales department focuses on specific strategies to achieve their targets of sale. Advertising department coordinate with finance department to decide the budget for advertising and also perform with external organisation. IT department has its own importance because it provides management information system which helps every department to catch the information at right time at right place. All departments work together simultaneously. Therefore performance of the organisation is reflected in the joint efforts of every department starting from identifying the need of customer to delighting the customer.


Every organization has an inherently form of business code and methodology to accomplishment of work. Company values and corporate mission is also affected by the culture of an organisation. There are various factors which shows the culture like aggressiveness, conservatism, intellect, or traditional. Some companies are very hard in adopting new culture which distinguish its’ from other organization. Well established companies have in built value mechanism that motivates its employees and guides them while they are working for the firm. In other words it is an understanding which gets passed on from manager to supervisor, then to other employees and workers.  It is a series of unbroken chain which helps to employee to come together to achieve their personal and professional goals and finally it meets organisation growth which is expected by investors. (Organisation Culture)


In general terms, HR refers to the resources of an organization in the form of human, i.e. the workforce of an organization. However, from the management point of view, it refers to the managerial function of planning, organizing, staffing, leading, controlling and co-ordinating the workforce in an organization in such a way that it helps in accomplishment of organizational goals.


In an organization, HR or Learning & Development (L&D) activities assists the management in proper implementation of the organization’s strategies and policies. It aims to achieve the organizational goals by performing the following functions relating to human resource:

Manpower planning, recruitment and selection

Training and development

Performance appraisal

Motivation and morale-building of workforce

Remuneration of employees

Industrial and employee relations

Preserving records of employees


HR activities involve manpower planning, recruitment and selection of employees for different departments within the organization. It determines the requirement of manpower as per the job description so that there is adequate number of employees in the organization. Lack of people at work will not help organization achieve its objectives and goals on time, while excess of workforce will lead to wastage of organization’s resources. Further, HR decides the best sources from where such workforce can be availed so that minimum cost is incurred on training them and they are capable of understanding the organization, its structure, objectives, strategies and policies. This is known as recruitment. Selection is the function in which HR selects and employs right type of people for various jobs so that the employees can easily understand the organization and work in accordance to its strategies and policies.


After placing the people on the position, HR activities include imparting training to the employees and developing their skills so that they work effectively and efficiently in accordance with the job requirement and perform their duties and responsibilities towards the organization competently, thereby helping the organization in devising and implementing its strategies. It performs the function of designing and running appropriate programmes to train and develop necessary skills among the workforce.


HR plays an important role by motivating employees and building up their morale time to time so that their efficiency to perform their functions within the organization is maintained. It helps various departmental managers to devise a system of financial and non-financial rewards to motivate employees. A motivated workforce is sure to move in the direction in which the organization wants, thereby supporting an organization to meet its goals and business objectives. (Heathfield)


HR managers play an important role in supporting the line managers. They explain the procedural framework and provide advice and guidance on all HR-related matters like employee development, reward, involvement and participation, employee relations, grievances, etc. which helps the line managers to work within the policies and norms of the organization.

HR managers provide training and development to the line managers, thereby helping them to acquire skills and knowledge required to carry out their duties and responsibilities efficiently and effectively.

Apart from supporting the line managers in their day-to-day activities, HR or L&D professionals also perform the role of a consultant. It provides internal consultancy to the line managers whenever required, while sometimes proactively by controlling the situation by causing something to happen rather than waiting to respond to it after it happens. (Susan M. Heathfield)

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