What Is an Organizational Structure?
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Published: Tue, 02 Jan 2018
What is an organizational structure? An organizational structure is a formal system to arrange the jobs and coordinates the workers in an organization to achieve a company’s goal. In addition, the organizational structure of layers is organized into a hierarchical structure. Moreover, the organizational structure is a good pipeline for channel of communication, arrange tasks, and set the roles, and the relationship of the one department between other departments in an organization.
1.1 A proper organizational structure contributes to effective management.
Next, a proper organizational structure needs to have some positive effect. And these positive effects are creating by the advantages of an organizational structure. Advantages of an organizational structure are easy to control and appropriate arrangements the resources to each of the different department, making it easy for employees to know to whom to report by clearly defined reporting lines, minimizing redundancy by excluding extra and unproductive processes, help to reduce the cost because control center is from the micro level to control variety cost and the organizational structure offers main issue and direction to an organization.
All types of organizational structure.
There are four common structure we can found within organization such as entrepreneurial structures, functional structure, divisional structure and matrix structure. Each structure area there will be having its own management structure.
First, entrepreneurial structure is to maintain and manage the large enterprise and an important joint venture. In this structure every play an important roles in relationship to the chief. In addition, this structure has an important pipeline to convey the authority for all levels of management, has a very centralized bureaucratic procedure and everything will be decide by top management.
Second, functional structure is a general structure in any organization. This functional structure has divided the activities of the organization into different units or special departmental groups. While each functional structure is controlled by the top level of management. Therefore, this structure is hierarchical structure and centralized structure.
Third, divisional structure is basically divided into three different market sectors in an organization. These three different market structures have different tasks. The three different markets are product divisional structure, market divisional structure and geographic division structure. The product divisional structure is a group of the employees involve the production of produce specific commodities then grouped into one division. Besides that, the market divisional structure is based on the market classification of the various operations. For example: business and corporate sale division, and consumer sale division. After that, geographical division structure is a part of an organization. Geographical division structure is a group of the employees located in one geographical location then grouped into one division. For example: European division and south Asian division. The division manager in each country needs to operate the decision making in everyday.
Fifth, matrix structure is a system of management and also is a complex structure which includes multiple lines of authority. In the working environment of matrix structure has different professionals together and worker report is more than one person. In addition, in this structure has combined with the basic of functional structure and a basic of project structure.
2.1 What type of business should employ what type of organizational structure?
There are many types of business operate in the market so that means the company will employ different types of organizational. There are four common organizational structures such as entrepreneurial structure, functional structure, and matrix structure and divisional structure.
Entrepreneurial structure is suitable for small business and in the structure just have entrepreneur and employees. In addition, in this structure only have 1 or 2 people at the top making decision. Moreover, the entrepreneur has authority to control all over aspect of the business and employees by using this structure. Examples of business using this structure are café and tutorial.
Functional structure is very general in the organization. In addition, this structure can divides in many different departments. Besides that, this structure is suitable for produce single product and service. Examples of business using this structure are construction and manufacturing.
Matrix structure is most complex structure in this four common structure. This structure to have good coordination and information when there is a wide variety of community organizations. Examples of business using this structure are Sunway Group, IOI Group and Berjaya Group.
Divisional structure is separate into many departments so easy to work, allocate tasks and controls of their departments. Examples of business using this structure are hospital, shopping center and ice-cream company.
3.1 What is event management?
Event management is a process through planned and organized by event managers. It is a broad term and encompasses the allocation, control, direction and analysis of many resources like time, money and products for achieving objective. Managing and planning event is an arduous task. Therefore, business organizations will outsource the task to professional service providers.
3.1.1 The kind of events that the writer manages.
The events that the writer manages are make-up show, wedding fashion show and fashion show. These events my MonaLisa Events Management (M) SDN. BHD will help to find the appropriate places for each show, the tools, and the models and so on for satisfy the customers’ needs and wants and the services.
3.1.2 The background of MonaLisa Events Management (M) SDN.BHD.
MonaLisa Events Management (M) SDN. BHD was founded in 2000; MonaLisa offers the most complete facilities and perfect service, we satisfy customers’ needs and taste and requirement by according to customers.
Mona Lisa has come from different professional background of professionals. We use years of experience and mature technology to tailored the customers dream exhibition. Mona Lisa offers the show of make-up, wedding fashion and fashion.
We offer the best service to every customer. In addition, hope they that can achieve dreams and successful exhibition.
3.1.3 The organizational structure that the writer want to use for my company.
My company is doing about the management of events and manages many types of events. In addition, my company is take the fashion line so our company will needs more different departments to complete the tasks. So, I will use the functional structure for my company structure.
Generally the advantages of functional organizational structure are many. But we can see the major advantages there is always occur in functional organizational structure. Firstly, infrastructure can encourage employees to career development. Secondly, because have qualification, talent and knowledge for specialized functions and particular roles are incorporated into sub-categories within company so these benefits had created a clear career paths. Thirdly, employees are arranged on the basis of their common interests so they have opportunity to learn a lot of professional knowledge from each other. Fourthly, skilled employees of the same group can also have the opportunity working with more skilled colleagues who share their professional interests and abilities. Fifthly, the control of functional structure is increased because employees try to supervise each other work. Therefore, the working environment had become productive and enjoyable because of the employees with the spirit of learning.
Next, the functional organizational structure also has major disadvantages. Firstly, the organizational of its growing product line is strained because skills and abilities of employees are narrowed and only focus on own area of specialty. Secondly, the problems of communication between departments are always occur different views and opinions because the interaction between various departments are decreased. Thirdly, the flexibility of solving problems, make changes or slow responding to customer demands or needs are create by difficult to analyze which employee is more efficient and which is not. Fourthly, this structure final decision making have to be given from the top level of management because the strategic problems are not given focuses on significant.
3.1.4 The MonaLisa Events Management (M) SDN.BHD organizational structure.
For my event management the writer have choose functional structure which need event director, programme coordinator, venue coordinator, equipment coordinator and hospitality coordinator under these department. There are several department as the writer mention above.
In conclusion, the functional structure is the most general structure in every business. The businesses can use this structure to allocate the tasks be in charge of different departments. In addition, the businesses can learn and understand the ways of how to use functional structure from the major advantages and disadvantages of this type of infrastructure. Moreover, the ways of communication and coordination of each department are very good. Furthermore, the larger organizations will have more challenges so that individuals have the opportunity to realize their potential. The most successful in organizations are small to medium size and merely deal a few product types and services.
For countering the weaknesses my recommendations are the company can offers the training programmed periodical. After that, the company also can mobilization the employees to different each departments. Therefore, the employees can enhance their skills and ability. For reduction of conflicting opinions, employees on each department can always held a small discussion. The small discussion is an enable employees proposed and exchange their personal opinions and ideas. Next, employees on the organization can learn how to pay particular attention to services and quality. Then, looking for niches where they can serve customers. Sometimes, employees need to listen to customers about their needs in order to satisfy customer’s needs. Therefore, using appropriate organization will create good talent of employees and achieve the goal in every time.
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