Organizational structure very important to companies, even small firms

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Introduction

In study of Principle of Management, we had learned that organizational structure. Organization is the framework, within organizational structure it consist of relationships, responsibilities, authorities and communication of individual among each department. There are four common organizational structure such as entrepreneurial structure, functional structure, divisional structure and matrix structure. Each common of organizational structure was been employed by different of companies or firms.

Furthermore, organizational structure is very important to a company even to a small firm. This is because a company is employed what kind of organizational structure will affect the operation, chain of command, authority's level and communication system to the company itself. So, if a company is having a proper organizational structure, it will contribute to effective management to the company itself. Organizational structure is the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate to achieve an organization's goals.

Body

So, a writer has had decided to come up with an event management company to the market. The company's name is Robin event Management Company.

Event management is including several of types of events. The definition of event management is the process by which an event is planned, prepared, and produced. Which mean the management is with any other form of management, and it including the assessment, definition, acquisition, allocation, direction, control, and analysis of time, finances, people, products, services, and other resources to achieve objectives. There are different types of event management such as, business and corporate event, exhibitions or expositions and fairs, festivals event, marketing event, sports event, entertainment and leisure event and so on. These events are managed by the event manager. The jobs and responsibilities of the event manager is to supervise and arrange every aspect of an event, including researching, planning, organizing, implementing, controlling, and evaluating an event's design, activities, and production

Therefore, this company is provides some services that the customers can ask for this company to conduct the event according their wants. The people that the company need are such as technicians, decorators, marketers, and some managers. For the technicians, the technicians can help the company to operate and install the electronic equipment such as lights and fan. Next, the decorators are function to help to construct shelters when an event are been conducted at outdoor and they also can optimize the shelters to attract more people join the event. After this, the jobs and responsibilities of the marketers are conduct the research toward the people to find out what actually the needs and wants and identify or analyse the internal and external of the company such as environmental scanning or analysis, marketing information system and so on. Last, the managers are function to manage the employees, always motivate the employees and solve the problem when the company faced.

In addition, there are four type common organizational structures such as entrepreneurial structure, functional structure, division structure and matrix structure. The following below is the explanations of the type of common organizational structure.

Entrepreneurial Structure

Entrepreneurial structure is the owner of the company retains control over large or important enterprise of the organization. This structure is most common in smaller organizations and is best used to solve simple tasks. In this structure, there are other managers to conduct their part in relation to the company. Entrepreneurial structure has clearly defined lines of authority for all the stages of management and has a highly bureaucratic procedure. The people that has most authority was giving tasks and command to the down stages employees and makes all key decisions and most communication is done by one on one conversations. The following below is an example of entrepreneurial structure.

Senior Management

Strategic Management Committee

Information System

Sales and Marketing

Business and Finance

Technology

Support Service

Functional Structure

Functional structure is the structure which divides the program of the organization into different function parts. So, each function part was contain its own management structure that this structure is combines both hierarchical structure and centralized structure. The top level management will giving the command to the employees and control the employees. So, in this structure it will leads to operational efficiencies and specialize the skills within that department. The employees can carry out the task and performing the activities by efficiently as this structure is integrating the activities vertically. The following below is an example of functional structure.

Chief Executive

Project Director

Finance Director

Marketing Director

Planning Director

Project Manager

Finance Manager

Marketing Manager

Planning Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Divisional Structure

A divisional structure groups its divisions according to the specific demands of products, markets or customers. Divisional structure focuses on a higher level of specialization among a specific division, thus the division structure have been employed by a company; the company will conduct activities satisfying all customers, markets and products. Basically the company that employed divisional structure is to serve a huge group of customer, so the company will to swiftly react to changes in their specific business environment. The following below is an example of divisional structure.

Vice President

Director of warehousing and transportation

Director of real estate

Director of operation

Director of purchasing

Director of administration

Warehouse Supervisor

District Manager

District Manager

Store Management team

Store Employees

Store Management team

Store Employees

Divisional office Support staff

Warehouse Employees

Matrix Structure

Matrix structure is an involutes structure which involves multiple lines of authority, rather than hierarchal lines of command. Put simple, it contains groups of people created from various department of the business; the employees may have to report more than one boss or manager. In matrix structure, it can combine the best of both separate structures and is a decentralized form of structure. The following below is an example of matrix structure.

Transport

Manager

Production

Manager

Planning

Manager

Purchasing

Manager

Matrix

Structure

Warehouse

Supervisor

Production

Supervisor

Planner

Product A Manager

Purchaser

Warehouse

Supervisor

Production

Supervisor

Planner

Purchaser

Product C Manager

Warehouse

Supervisor

Production

Supervisor

Planner

Purchaser

Product B Manager

Furthermore, a different type of event Management Company has employs different types of organizational structure. By using organizational structure, the manager can giving demand and instruction to the employees and manage the employees in regular pattern.

So, for the entrepreneurial structure, it is suitable to use by a small business with sole proprietor. The company owner can full control over the company itself and only the owner of the company is decision maker. For example the company or firm that suitable uses entrepreneurial structure such as clothing store, groceries store, school bus transportation company and other.

Next, functional structure is suitable be used by the company that the company is having the characteristic such as that is large of scale company, the volume of the production of the company is high and contains a lot of employees. Basically, functional structure is been using by such as manufacturing industrial, factory, and large firm and other.

Other than that, divisional structure is appropriate to the larger business enterprise companies. These companies are mostly focus on specific needs and desire of each consumers or each country and focus upon a narrow aspect of the product and services of the company itself. So, the company which employed divisional structure can response rapidly to change in any command and request. For example, Disney Corporation, general electric industry and so on.

Lastly, matrix structure is appropriate to the company that the company's employees often use team to complete task, having many series of products or services to produce and is a big scale of company. So, in matrix structure, the employees are under working not only one manager or one boss, the employees are report the working and overall situation to the few top level management peoples. For example the company or group are employed matrix structure such as, Sunway Group, Pelangi Publishing Group and so on.

There are the reasons why the writer is chosen functional structure for his company.

Efficiency of Management

The company was divides the activities and projects into different functional parts to develop or carry out by step by step. The each department is specific in certain function. So, the task or event is been complete with a short time and been complete efficient as the task and mission has been break down into few small parts.

2.6 Efficiency of Workforce

In functional structure, the bottom level of the employees has been supervised by the manager and supervisor. So, the employees are being hard working to doing their jobs and not being lazy. Besides that, when the customer is not satisfy the result came out by the employees, the planning manager can give order to the employees to correct the defects by immediately.

Combines both hierarchical structure and centralized structure

As the company's owner, the writer was hopes that the event has been conducted by well, the employees are performing well and able to satisfy the customer by the good services provided. So the writer have to control the bottom level part people by rational and carefully. This is because the writer is the one who are making most of the decision and most authority in the company.

Managing Director

(

_

(The Writer)

General Manager

Marketing Manager

Finance Manager

Planning Manager

Operation Manager

Event Planning

Manager

Purchasing

Manager

Customer

Service Manager

Designing and Construction Manager

Event Planning

Supervisor

Staff

(Event Planning)

Purchasing

Delegator

Designing and Construction supervisor

Staff

(Decorators)

Staff

(Technicians)

Staff

(Store keeper)

)

In this structure, there are some advantages and disadvantages that the writer has to consider it.

Advantages

Minimize duplication

This structure are contains few part of department to focus on the work and job with the specific skill and ability, each department is produce different function to complete the task and doing jobs. So, the duplication has been minimize, the employees only focus on what should they do and what they should carry out.

2.8.2 Easier supervision

The managers within a functional structure are usually experts within their particular unit who have been promoted to that role due to high performance. So, these managers possess a superior skill level that helps make their job easier and makes them better equipped to operate the individual performance of their department employees to distribute recognition, rewards and punishments accordingly.

2.8.3 Skill development

Skill development is meaning that the employees within the department can develop and improve the skill themselves. Because a functional structure groups people performing similar tasks that require particular skills, more experienced or talented employees serve as examples and tutor to the other employees that with less experience.

Disadvantages

2.9.1 Poor communication among different department

The employees only communicate with each other within the department and they less communicates with the other department. Each employee only recognize the employees who are work in the same department.

2.9.2 Problem are pushed around

When there are some problems occur in each department, the employees within that department will not bear the problem and they will consider that the problems is the other departments cause. So, the problem was been pushed around and the employees may blame the other departments.

2.9.3 Too much of specialization

The employees in each department only work for certain task and job it will cause the employees are having narrow of skill and abilities. They only do what they need and suppose to do, when the task is done then will just past to the other department to complete it. In this case the employees are not having other skill and abilities to doing and carry out more than other tasks and jobs.

Conclusion

As a result, the best option of the organizational structure that the company suitable to employ is functional structure. This is because the company need the specific of skill and abilities workers. In order to carry out and complete perfect jobs the top stages management have to manage the employees to achieve the company's goals and make the customer satisfy. Functional structure is an organizational structure that the writer is considering the best to the company itself.

For this structure, it has some disadvantages; the disadvantages as the weaknesses. The writer should evaluate the weaknesses and try to correct the defects. First, based on the disadvantages of the functional structure, there are contain poor communication among different department, so the writer need to conduct a survey in order to check which department are most poor communication between which department. After that, the writer have to promote formal and informal organizational communication to the employees and conduct an annual dinner to the employees by certain period of time to make them improving the relationship between each other department.

Next, problem are pushed around, this situation is not to be avoid easier. The writer have to always inform the employees do not pushed the problem around, let them understand the consequences of the problem been pushed around and giving punishment to the employees that who are pushed the problems around.

Last but not least, because of too much of specialization the workers only have narrow of abilities and skills. To correct this defect, the writer has to employ the trainers to train to employees to learn some new skills and abilities. The employees can learn new abilities and skills to doing other jobs, when one of a department are faced less workers, the manager of the other department can transfer the employees to that department as the employees are having the skill.

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