Organizational Structure Frameworks Within An Organization Business Essay


Organization structure is a framework or hierarchical within in an organization to comprised of functions, authorities, communications, and responsibilities of individuals within each department. There are commonly divide into 4 types, it is entrepreneurial structure, functional structure, divisional structure and matrix structure. Each type of organization structure has the different characteristic and firm should choose the suitable organization structure according to their business industry. Normally an organization structure has a few hierarchical and the top of the organization structure are normally had the most authority to make decision in the firm or company.

It is important to have a proper organization structure to each company and it will contribute to effective management. This is because a suitable or proper organization can help the management and subordinates have a clear line of jobs and the authority they have, organization structure will distribute the worker into specific department which suitable for them and they can work effectively in that department. Besides that divide to different department also can help company getting more effective because the worker can focus on the specific jobs not need to worry about others thing that beside them department.

1.2 Body

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The event management that the writer going to establish is name as VC Event Management Sdn Bhd, it is an event management company in Johor, Malaysia. VC Event Management is aim for the customer within around whole Malaysia, and provides planning and organizing a wide range of events from corporate events to social events. The philosophy of VC Event Management is “Every event is unique. Therefore, each event concept is tailor-made to suit that event.” and the vision is to bring VC Event Management to the global stage.

Event management is a multimillion industry which is growing rapidly with mega shows and events hosted regularly such as Olympic Game, and season fashion show. But what is event management, an event management is defined as the process of project management to plan and development of events, conference, festival and others type of event. Event management is needed highly professional knowledge because it involves of studying the customer event requirement, identify the target audience, devising event concept, planning the distribution and coordinating the technical aspects before the proposed event. Besides that an event management company also has to analyze and ensure a return on investment after the event and it is become a significant driver for the event industry.

VC Event Management is provide MICE events, MICE stand for meetings, incentives, conferences & conventions, exhibitions & events. Besides that, VC Event Management also provides trade shows & road shows, promotion planning, venue management, logistic management & planning and equipment rental. So for VC Event Management function well I need to have 4 basic departments, the departments are administration department, operations department, marketing department and risk management department.

There are four common organization structures for us to choose, but which is the most proper organization structure that suitable for an event management company. Below will briefly explain about the four different organization structures. The first is entrepreneurial structure or known as pre-bureaucratic structure, company in this organization structure the chief of management have the large and key decision making in the organization, but there are other managers to help and carry out their roles in relation to the chief. Entrepreneurial structure has very clear lines of authority for every level of management has a totally centralized procedure, this means subordinates have to follow the order which passing by top of management. Entrepreneurial is most common use in smaller organization and is easy to solve simple tasks, besides that it is particularly useful for new businesses as it allow the founder to control the growth and development of business.

Next is the functional structure it is common use in companies which is manufacturer or services industry. In functional structure a company will groups worker together into different functional departments such as marketing, production, administration, operation management and purchasing department. Those functional departments will have a head call manager or director. Besides that, each functional department will has its own management structure and this structure is combines both hierarchical structure and centralized structure. By the way functional structure also has the advantage and disadvantage. The advantage of functional structure is high technical problem solving, this is because the specific knowledge workers will arrange in the suitable department so that they can solving problem with their colleagues in the same department and getting the high effective solution to solve problem. The disadvantage is poor communication among department, because people only will focus on their department and them also less of knowledge about other departments so when meeting with other department they may have poor communication.

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Besides that is divisional structure. Divisional organization structures focus around product, geographic or market divisions. Divisional structure normally is use in conglomerate or multinational companies. The advantage of divisional structure is able to focus on specific needs and expectation of products consumers or each country and able to response rapidly to changes. This is because this structure is a decentralized structure and thus it allows each division has its flexibility and quick response to environmental changes.

Last but not least is matrix structure, it is normally use in multinational company and education. Matrix structure is a complex structure that involving in multiple lines of authority, rather than hierarchal lines of command. In matrix structure employee will report to more than one boss. The advantage of matrix structure is provide good control, because the manager can control buying same material for all product and so it can saving more money. But it also has disadvantage such as reacts slow to change and conflict between bosses.

From the four common organizations structure, VC Event Management Sdn Bhd is suitable for using functional structure. One of the reasons for using functional structure for running VC Event Management is because the company can divide out to different department so that their worker can be specialization in that department. Another reason is because functional structure is decentralized it allow some of the management has the authority to decide what to do, such as when planning an event for customer the group members can given suggest and the leader of the group has the authority to accept or change the idea that had suggested. So in this structure workers can be has more authority to decide that the way can provide much better service, and the will trusted them because they are professional. Besides that, the reason for chosen functional structure as VC Event Management organization structure is because the size and types of VC Event Management. Compare to other organization structure functional structure is more suitable for medium size company just like VC Event Management, because entrepreneurial structure is suitable for small business and it is more centralized so it is not suitable for an event management company that had highly changer decision making with customer. Divisional structure is not suitable for VC Event Management is because divisional structure is normally use by multinational company that has many different industry businesses around the world, but for VC Event Management it was just a medium size company in Malaysia only and divisional structure has no specialization department and it is important for specialization department for an industry that need different specialization of worker to function the company effectively.

The organization structure of VC Event Management will be show on next page.

There are some advantage and disadvantage that VC Event Management Sdn Bhd using the functional structure for the organization structure. The advantages that VC Event Management can get from using functional structure are people that arranged in same specification therefore, they can learn from each other. Another advantage is control in functional structure is increase because people will try to supervise each other works. Functional structure also can help VC Event Management increase the quality of technical problem solving because it can help workers quickly to discuss with the technical expertise.

The disadvantage of VC Event Management using functional structure is poor communication between various departments is increasing because the workers are normally interaction with the same department colleague only. Another disadvantage of functional structure is problem are pushed around and loss of clear responsibility for product or service delivery, and it is slow innovation in response to environmental changes.

1.3 Conclusion

Functional structure is the best or proper organization structure for the VC Event Management Sdn Bhd. This is because the functional structure has the characteristic that meet the need and wants of the VC Event Management, such as specialization department that can design and depend on the company needs so the company can have a more effectively in each department. Besides that, using functional structure can let their worker clearly know their career path every worker can has the chance to promotion to the upper level of management. Example a project manager will has chance to promote to the site operation director, if he or she perform well.

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But functional structure also has some disadvantages so to achieve the most effectiveness they should try to overcome the disadvantages. Example, poor communication among department can be solving by having more discussion and cooperation together when having project. Another disadvantages can be overcome is problem are push around and slow response, this can be solve by having a responsible leader and given more authority some that they can make decision immediately and take action.

At the end, it is important to every company had their own organization structure and it should suitable apply to the company. So for VC Event Management Sdn Bhd is best for using the functional structure, and it will helping the company running more effective.