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The Importance Of Organizational Structure Management Essay

Paper Type: Free Essay Subject: Management
Wordcount: 2664 words Published: 1st Jan 2015

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Every company has its own organization structure. Organizational structure can be described as the systematical process of delegating power and authority among the employers. Besides, organizational structure also involves in how a business is organized to achieve their specific goals.

Organization structure can be defined as the pattern of relationship among positions in the organization and members of the organization. Structure provides the framework for organizational activities and the management. Organization structure can be described as a framework that delegates responsibilities, working roles and relationship, and channel of communication.

Organization structure is a framework which discusses the needs of a project to be successful in organizing. This framework is established at the outset and must be well understood by all concern otherwise it will be impossible to make important decision makings. Too many projects have set out with no clear idea of who the customer is and who is empowered to take these important decisions, and a project which starts in this way is bound to encounter severe difficulties along the way even if it does not end in total disaster.


Organization chart contains of functions, responsibilities, authorities, relationships, and communications of individuals of employees and management within each department. The typical depiction of structure is the organization chart. The formalized organizational chart was been formed since 1854, by Daniel McCallum, who used organization structure to create a sense of standardized flow of departments and positions that are align with respective individuals skills and knowledge, As result, the organization chart formed a clear line that showed the authority of supervisors as well as the communication flow available for the subordinates to their immediate supervisors.

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Having an organization structure is for purpose of being organized is to achieve goals and objectives by fully utilizing available resources. Being organized is the process by which the work is divided among departments and employees, and these department and jobs are linked together to form a unified system. It shows the organization design of the company. This organizational design also shows the chart of the company. Also, included the work specialization, chain of command, span of control, degree of centralization, and not forgetting the departmentalization of an organization.


There are four types of organization structure which are at common that any organization would use for their company. The four structures consist of Entrepreneurial structure, Functional structure, Matrix structure and Divisional structure.

First of all, the entrepreneurial organization structure is an adapting structure which brings activities of management and process that are related to gaining profitability upon specific opportunities. This structure hold strong management process accordingly in order to gain necessary speed, agility and creativity to utilize opportunities. An example of an entrepreneurial organization structure is as the chart below:

From the entrepreneurial structure, it is clearly understood that departments are diversified at wide range where the link between departments are several and each top management departments resembles other sub-departments that lay under them for example like the operation department which holds warehouse & logistics department and quality assurance department.

Secondly is the functional structure where an efficient work flow depends on the integration of various tasks within the organization. Most firms use this basic approach in structuring their organizations. The functional approach is straightforward and usually effective in practice. Functional Structure are usually best and more suitable for either medium or small sized businesses that don¿½t have wide range of products or production requirements. The functional structure works best for organizations who offers products or services that are solitary. Below shows the illustration of a functional structure:

From the diagram illustrating the functional organization structure, Functional structure can be described as an organization structure which hold minimum departmental sections and are not complicated with linking each top management departments with more sub-departmental divisions relating to the respective departments. This type of structure is best applicable by organizations that consists small number of organization members.

The third type of organization structure known as the Matrix structure is often used for short periods to solve a problem or complete a project. It can be a permanent arrangement in business where work is assigned by project, cutting across functional departments. In this structure, people have more than one boss.

Divisional structure is basically a kind of an organizational structure that is characterized by divisions inside an organization. Divisions are made to facilitate large sized organization that are either manufacturing more than one product or operating in more than one market or in geographic area.


Event management can be defined as a management that are formed to plan an event and carry out their plan into actions and succeed in the event as an outcome. Generally, event management is a set of project team formed to create and develop festivals and events. It is known as the practice of integration of communicating and handling events. Event management is a growing industry with exciting very much unique career opportunity for those who are in passion to work as planning and organizing of events. Despite event management being an organization by itself, event management also exist in every organization but are not as similar as event management company as other organization event management groups are formed as temporary to organize events like family day, annual dinner and others that only involves the organization members, however event management companies organizes events that would enable a huge amount of participation by anyone concern.


NS event management ptd.ltd is an event management company that is established for the concerns of charity where we plan, prepare and produce events that are organized to help those in needs and unfortunates. Our organization vision is to bring awareness to the society on their responsibility in helping those in charity. The mission of this organization is to carry out events that would raise funds to contribute to many charity homes that are based around Malaysia. Our organization organizes small events like concerts, sports, campaign and carnivals like selling donated goods which can also be called as charity sales.

Currently, our company is working on organizing an annual dinner which is named as ¿½Charity Nite¿½, to raise funds to contribute to charity homes that are based in Johor Bahru. We planned this Charity Nite to gather people to bring unity among people not forgetting the unfortunates. Despite, this event is also planned to ensure that the public are aware of charity homes in Johor Bahru to ease them giving their help and support to ensure the unfortunates are not neglected by us. Therefore, as an outcome from this event we would love to at least be able to provide the charity homes contributions on their daily needs in term of food, drinks and other daily necessary items. Our event management representatives according to plan are arranged in order with departmental objectives to successfully perform the event is as the organization structure below:

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Event Director is a leadership board that determines and recognitions events proposed by the manager. Event director¿½s major role is as being a strong support and guiding the right direction to the service teams to function within the event management. Event director is also in responsible to ensure that the team works on time preparing all necessaries for the event and communicating with the event owner if it¿½s requested by any other industry. For the Charity Nite, the event director is responsible in ensuring that the task and job delegations are equally distributed with each and every representative attached with their own roles and responsibilities according to their skills and knowledge. However, Event director is also in responsible to correlate with the finance manager who handles the financial status of the event ensuring that the flow of cash are stable and has hold of immediate records of every transactions held as it relates public and transparency.

The Event Manager holds the responsibility to plan and execute the event accordingly with his subordinates. They are often behind the scene running the event together with their teams involving in not only planning and executing the event but also brand building, marketing and communicating with relatedness to the event with strategies. Event managers are usually experts in creativity, technical and logistical elements which help the vents succeed. The event manager is involved in the event at the beginning stage till the end as they are also responsible in budget the event. For the Charity Nite, the event manager plays his/her role in all the elements of being an event manager to lead his team guiding them at every stage of action taken towards the arrangements of the event as designated by the event director. Event manager here reports the updates on the preparation of the event to the event director at every stage of improvement as well as discusses with the director when there are issues that are very difficult to be tackled and needs suggestions and ideas.

Program Coordinators is the department formed to handle the issues related to the event which includes publishing¿½s of the event, ceremonies that would take place for the event, as well as entries for the hall for the arrangement of tables and area for the people participating as well as preparations for the sittings and registrations. This department is formed to be involved and be responsible for the venue of the event where they are in task of ensuring that everything runs safe and sound during and before the event from practice of performance to preparation of equipments for the hall. For the Charity Nite event, the program coordinators are in responsible in handing the performance which are either searched and selected by them or gained by the sponsorship department for artists or famous people to perform for the fund raising and arrange dates for practices. Therefore, the program coordinators are responsible to ensure that the event programs are well arranged and publishing the event to the public are done widely.

Sponsorship Coordinators is the department that consist a few members who would look for funds which can be either monetary or in other tangible useful items like vouchers, daily necessary things, grocery and many more. This department needs of a lot of teamwork whereas at times, it would be helped by other departments. For the event of Charity Nite, the sponsorship coordinators are in responsible to persuade businesses, organizations and publics who are affordable to give in any sort of funds and support to successfully running the event. Therefore, the department is also responsible to acknowledge the sponsors by giving in return marketing tools by advertising their organization or using media to address them as for their whole-hearted supported for the charity.

Sales and Ticketing Coordinators is department that are delegated the responsibility of making sales and promoting the event through selling of tickets or doing sales of items which are donated. This department also is in responsible of generating funds like the sponsorship department to accommodate the expenses that occurs during the organizing of the event. For the Charity Nite, the sales and ticketing coordinators makes sales through selling off the tickets for the hall entrance to the public and organizations. However, this department also requires marketing skills and persuading skills like the sponsorship departments, as they are in need to first gain the trust of the public in order to ensure that they are able to sell their tickets and promote the event with huge number of participants involving for the event.

Official Coordinators is the department formed to handle documents and official letters similar to a secretarial job responsibility. Besides that, they are also responsible in getting marshals, umpires or master of ceremonies like guest of honors for an event. For Charity Nite, the official coordinators are in responsible to prepare documents that are important for sponsorships as well as program coordinators in term of the official letter requesting for sponsors, letters of performance entry, and also other official letters and documents. Despite, the official coordinators are also responsible to send invitations to guest of honors to successfully brighten the event on the day. Moreover, official department merges with others department documental works and files up the documents to be able to deliver its updating status to the event manager who can use it to ease him/her in explaining the updates about the event to the event director.


From the researches that have been carried out, the writer thinks that functional structure is the best structures for my event that is Charity Night 2011. This is because most of the firms use this approach in structuring their organizations. This is because the approach is straightforward and usually effective in practice.

We chose this structure is because it minimizes duplication in an organization. This is because the top manager will give the order and direction to the employees so there is no chance to be the same outcome even though similar tasks are given. Basically, the functional structure offers a way to centralize decision making and provide unified direction from the top.

Likewise how it has strengths it also has the weaknesses. The weaknesses are the lesser interaction between the other departments and people belonging to other departments. This can be overcome by having a general meeting once in a week or have small breakfast or tea time after a long time working in tension.

Apart from that, another weakness are because of the functions are separate from one another, employees a may have little understanding of and concern for the specialty areas outside their own functional area. These problems can be overcome by having a small consultation time every week in an organization. Through this employees can speak out their inconvenience or what they are not happy with other employees or with the tasks, managers or anything.

Another weakness are functional structure has rigid and separate chains of command response time to changes in the environment may be slow. Managers in a functional structure also become focused on their functional area, both long and short range. This can be overcome by¿½¿½

Another weakness, employees become isolated. This is because¿½¿½

Can be overcome by¿½

One of the most serious weaknesses are occur when members of functional departments become overspecialized, develop self centre, narrow viewpoints, and lose the total system perspective. This can be overcome by¿½..

Another disadvantage is problems are pushed around and also often slows decision making. This is because all the problems must be referred up the hierarchy for resolution. This can be avoid by appoint a manager for each of the department to make a decisions when the top managers are not around.


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