Propose The Structure Appropriate Commerce Essay

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A successful company must have a strong and proper organizational structure. In this point we dont refer to ultra-modern construction, but to the structure of the company that means that an organization should have strong internal stability, responsible people, professionally trained workers and good communication channels, (based on the business dictionary) which helps employees to understand their role within the organization and what is expected from them. According to Mochal (2003) it also helps management to coordinate and to link all elements at all organizational levels in a functional and efficient way. In the business environment there are different organizational structures for different types of business. They depend on what are the objectives, the mission statement or the vision of the business and in each company the appropriate structure is applied.

Organization culture represent a set of values, norms, standards of behavior and common expectations that controls the ways in which individuals and groups in an organization interact with each other one work to achieve the organizations goals. The basic functions of organizational culture provide a sense of identity of the members of the organization in order they to commit the mission that a company has and at the same time these functions establish standards for employees' behavior. (Tatum, 2012; Hill and Jones 2001)

Nowadays there are many authors that deal with management theory with different opinions and definitions of what is organization culture. One of them who searched further in this field was Charles Handy in his text "Gods of management" where he developed four types of organizational culture enabling managers to recognize organizational practices. The four types of culture typology are POWER, ROLE, TASK and PERSON.

The Power culture is resented as a spider web with a central leader where all the power in the organization is focused, with communication being centralized to and from the center. This culture is more common in small business or family-business where the vision and competences of the leader is very important. The Role culture resented as the Greek temple, with pillars signifying the different department of the organization. The roof of the building is the top management where decisions are made. This culture is focused on development of functional expertise and good internal organization. The Task culture is presented as a group of people who work together on the project in order to achieve the organization goal. They are involved in extensive research and development activities that are more dynamic, having specific task to accomplish. The Person culture is focused on individuals and their role in the organization. This type of organization is good for the lawyers, architects and business that focus on talented and creative people. (Sherwin, 2008; Tiplady, 1995; Euston, 2010)

Moreover, a classification of the part of the organization is presented by Mintzberg. In his concept, according to Mind Tools Ltd (1996-2012), Mintzberg distinguished the following six basic components: ideology is consisted of a various norms, beliefs, values culture and traditions and strategic apex refers to the top management more specific to the power and control of the organization. Techno structure deals with a analyse of the design systems, processes and designing or training people in specialized jobs, etc.). Supporting staff provides indirect goods to all organization and support outside of operating workflow. Middle line is actually the middle manager who connects the Strategic Apex with the Operation Core. Operating core means operations and operational processes e.g. the production line, employees doing the basic work ect. Based on the before listed components Mintzberg suggests five generic structure: the simple structure, the machine bureaucracy, the professional bureaucracy, the divisionalized form and the adhocracy.

The simple structure has a simple, flat structure with no technostructure and thus it is flexible. There is loose division of labour, little differentiation among its units, and a small managerial hierarchy.A direct supervision controlees the coordination. A key part of the structure is the strategic apex.

The machine bureaucracy is defined by its standardization. Work is very formalized, there are many routines and procedures, decision-making is centralized, and tasks are grouped by functional departments. This organization has a tight vertical structure. Functional lines go all the way to the top, allowing top managers to maintain centralized control. These organizations can be very efficient, and they rely heavily on economies of scale for their success. However, the formalization leads to specialization.

The professional bureaucracy is complex and there are lots of rules and procedures. The strategies are mainly developed by the individual professionals within the organization as well as of the professional associations on the outside. This type of organizations relies on highly trained professionals who demand control of their own work and decision making is decentralized. The clear disadvantage is the lack of control that senior executives can exercise, because authority and power are spread down through the hierarchy.

The divisionalised form is common in an organization that has many different product lines and business units. A central headquarters supports a number of autonomous divisions that make their own decisions, and have their own unique structures. The key benefit of a divisional structure is that it allows line mangers to maintain more control and accountability than in a machine structure and allows them to ensure that the necessary support structures are in place for success. A significant weakness is the duplication of resources and activities. Also, divisions can tend to be in conflict, because they each need to compete for limited resources from headquarters. These organizations can be inflexible too.

Adhocracy includes a little formalization of behaviour with job specialization based on formal training, a tendency to group the specialists in functional units for housekeeping purposes but to deploy them in small, market-based project teams to do their work; and a reliance on liaison devices to encourage mutual adjustment, the key coordinating mechanism, within and between these teams. The advantage is that they maintain a central pool of talent from which people can be drawn at any time to solve problems and work in a highly flexible way. But innovative organizations have challenges. There can be lots of conflict when authority and power are ambiguous. And dealing with rapid change is stressful for workers, making it difficult to find and keep talent. (Sherwin 2008; Unger, Macq, Bredo & Boelaert, 2000)

Having in mind all these type of organization structure I am going to explain my opinion why I choose the particular organization in these examples.

The advertising company

Regarding to the advertising company, it deals with informing the potential customers with a products or services other company produces, in order to lead them to further purchasing. It is very important this company to communicate on a appropriate interesting way with customers and to build the desired company's image in the customers' eyes. Hence if an advertising company aims to successful accomplishment in this task it must be dynamic and innovative with new and unique ideas for each new project. There is a need for working in group for objective's achievement, company goal's accomplishment and client's satisfaction. The best organizational structure that fits best to the advertising company according to the Mintzber's concept is the Adhocracy. Thus, because there are employees that are creative and motivated from the specific needs and different features of every single advertisement (project).

Moreover the employees possess expertise and they connect themselves in functional team. Everybody of them has a power to make decision in a way that he/she is capable of that. They act in very flexible way and their work is object to change. In terms of cultural typology based on Hendy's model in my opinion the best solution is task culture. More specific this culture is suitable for organization who utilize small teams. In this advertising company there are only 15 employees and they all cooperate together to deliver a project. Their organization structure is changing and adapting in the condition of the task. Individuals can control their work in different level and they focus their effort to the achieving the goal. This culture is flexible to the external conditions.

The manufacturing company

In the case of the manufacture company that is that big to have 500 employees and is export - oriented there are two type of structure that can be applied. The first one is Bureaucracy from the Mintsberg's typology that is suitable for company which uses economy of scale, because it exports to Europe, so there is big volume of production. Same there is many different departments each of them with strict defined task and objectives to be done and routines and procedures to be followed. So, this manufacturing company to be successful must be well organized, focused on development of functional expertise.

The second one that derives from Handy's classification is role culture. Thus because it focuses on a expertise, knowledge and organization skills in company where standards specialization, procedures and rules are used in order to be produce a big amount of products by a large number of employees.


From the above stated we can conclude that there is no one right organization structure for a company. Every type has its advantage and disadvantage that make it differential and appropriate for a company with different characteristic features that operate in environmental under specific condition. The organizations should be structured regarding to their nature, filed and scope of activities, number of employee, ect. A company consists of elements that all together built whole in order profit to be made and success to be achieved. Those parts of the organization should be organized and managed in the way the task to be accomplished unfettered. Only like that the success is guaranteed.

Work cited/Reference:

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Jean- Pierre Unger, Jean Macq, Francois Bredo & Marleen Boelaert, Bulletin of the World helth Organisation, 2000, 78 (8), "Trough Mintzberg's glasses : a fresh look at the organization of ministries of health" data viewed 05.11.2012 22:28

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Data viwed 03.11.2012 15:30