Assignment Sample on Organisational Structures for Effective Management
Introduction
The organisational structure is referred to the formal and logical dispensation of jobs, controls, powers and the path of cooperation and transmission towards obtaining goals and objectives of an organisation (Estalaki, 2017). Furthermore, this presentation will demonstrate the necessity of organisational structures lining up with theories. Differences between formal and informal organisational structure will be drawn as well. Organisational effectiveness will also be discussed in this presentation.
The importance of organisational structure
Henry Fayol’s theory
Henry Fayol’s management theory is a structure of management’s interactions with the employees. The model described by the author is “top to bottom” and proposes that the rigid system of the enterprise is well organised (Eydman, 2018). Fayol’s theory mainly consists of 14 concepts that rule over the organisational requirements to act (business.com, 2021). Furthermore, the theory is the latest contribution to the development of the organisational structure in organisations. “Division of work” suggests that reprising the same work contributes to higher speed and precision, thereby scales up the output for the employees. “Authority and responsibility” represents the significance of authority’s responsibility combined with increased judgments and ethics of the superiors, thereby explaining the higher pay for managers compared with the government’s civil servants.
Synergy model
Synergy refers to a complex disperse system recognised by the properties, such as propensity to self-development, self-organisation, adaptability to the outer environment, and desire to survive in changing situations. Improvement through crisis and the mixture of the structure and chaos scale up the flexibility to the external environment (Gaisina et al. 2017). Furthermore, the synergy model in the management presumes the control over the social quality of the employees or the organisational structure that hypothetically could not be forced by the leaders and management advisers. Apart from that, synergy is essential for developing the organisational structure, as it comprises loyalty, cooperation, co-creation and support to establish better impact and outcomes. Furthermore, organisations could use this model to generate greater resolutions to issues and obtain the organisational vision and mission.
The American approach to organisational structure
American organisations adopt organisational structure to reduce confusion over the job assumptions and support employees to cooperate by recognising responsibility and job roles in the executive function. Four important organisational structures are found in most US-based companies such as line structure, line and staff structure, matrix structure and team structure. However, functional design is given more importance in the organisations of this country. The functional organisational structure is a standard structure that divides the organisation into smaller categories based on the exclusive function regions, including information technology, finance and marketing and maintains the hierarchical order in the organisation (Harutyunyan, 2017).
The European approach to organisational structure
The hierarchical organisational structure is commonly found among European companies (europeanceo.com, 2021). The hierarchical organisational structure represents the hierarchical order in the organisation, and the organisation is considered the entity with different levels of command (Han and Ko, 2019). Furthermore, that organisational structure creates a chain of power, and every management level has responsibilities and control. As the enterprise grows, the number of groups increases as well and makes the structure taller. Therefore, it can be assumed that hierarchical organisational structure is applied to more prominent companies with higher production levels and net sales, thereby offering robust control, which could be controlled via design, quality, and manufacturing and distribution of products.
Formal organisational structures
Line
The line structure refers to a line organisation where officials stay at the top and move down in a line and the managers carry out the line function that benefits the company and scales up the profitability. The line function consists of the production manager, sales executives and managers at the marketing department. Furthermore, line function could assist an organisation to be more economical and efficient as it enables quick decision-making and practical cooperation and promotes unification of the command.
Line and staff
Line and staff structure could be found in mid-sized and larger organisations. Lina and staff in management address the authority’s responsibility to create objectives and goals and direct employees towards it (britannica.com, 2021). Apart from that, the team functions as guides and assist line functions and the staff department comprises the legal, HR, public relation department. Furthermore, line and staff structure aim to provide a large and complicated company more supple without disturbing the officials of the management.
Matrix
The matrix organisational structure consists of more than two sorts of organisational structure and the unification of these organisation structures creates balance in the administrative function (britannica.com, 2021). The matrix structure assists employees of other departments to unite temporarily to work on a particular project. Furthermore, it allows organisations to react towards the requirements of the consumers by establishing a team where employees are committed to complete any project. Organisations often adopt this structure because more significant projects require a regular allocation of employees for the particular project.
Team
The team structure is a combination of a single team or multiple team systems, which is an essential part of the teamwork procedure. Furthermore, many organisations are discarding the line and staff structure to establish a team approach. Apart from that, organisations could gain significant benefits by bringing skilled people from different fields to achieve a single organisation goal. Furthermore, organisations are adopting a team structure to address consumer requirements effectively than the traditional structure.
Mechanistic versus organic
Mechanistic structures are similar to the administrative approach and highly regularised and unified (opentextbc.ca, 2018). On the other hand, Organic structures are not centralised yet flexible, along with widths of control and lesser systemisation. Mechanistic structures are taller with small spans of control. However, communication underlines are more flexible and effective. The mechanistic structure follows a traditional communication approach, where employees are offered particular jobs aligning the roles and influences (bccampus.ca, 2017). Apart from that, Organic structures prefer to give employees many types of job representations and employees are required to perform jobs based on the company’s requirements.
Centralised versus decentralised
The centralisation is a gradation where authorities responsible for decision-making are concentrated at the higher state in the organisation. On the other hand, decentralised structure envoys decision making command throughout the enterprise. Centralised organisational structures rely on one person to shape decisions and offer directions for the organisation (Rashed, (2017). Similar structure could be found among small businesses, and the possessor is responsible for business operations. Although, decentralised structure depends on several individuals responsible for shaping business decisions and business operations.
Flat versus tall
Tall and flat organisational structure represents the construction of an organisation’s stages of management. Where tall organisation or steep organisation, CEO is given the top priority in the chain of command along different management levels beneath. Flat organisational structure or parallel organisation has lesser management levels and employee freedom in the decision-making procedure (Ahmed, 2017). All larger organisations are choosing tall structure because it has a variety of choices, but smaller organisations are limited to smaller choices therefore flat structure suits best.
Informal organisational structures
Difference between formal and informal structure
The formation of the formal structure is based on the influence of mutual agreement of two or more individuals and maintains a formal work relationship often controlled by ethics and regulations. Informal structures are devised under the formal organisations. Therefore, it can be understood that these organisations are not formal and often get created under the influence of social standards and networks of the individuals working in the formal organisational structure (Bonanomi et al. 2019). Employees are given specific tasks, which are interrelated with the aims and objectives of the organisation in the formal system. On the other hand, employees are not given any particular tasks that interrelate with the aims and objectives of the organisation, and it could advance in any direction.
Benefits
The main benefit of the informational, organisational structure is that it offers chances to the employees to improve relation with the other staff of the organisation. Therefore, it develops workplace solidarity and morale. Informal structure has a positive influence over employees that improves productivity and job satisfaction. Informal organisation structures are considered the best platform for faster communication.
Potential drawbacks
It forces employees of the organisation to limit outputs, thereby shows a disconnection in organisation regulations and processes. Therefore, it causes disobedience and promotes unofficial actions that work checks to the formal organisational structure. Informal organisation structure deploys for conformity. This could make employees resistant to work independently, creativity often is reduced from employees due to the pressure from group acceptance.
Organisational effectiveness
Achievements of objectives
The organisational effectiveness is referred to utilisation of the resources to obtain the organisation’s goals and objectives. within a particular time (Mdluli, 2020). It could be obtained via devoted employees working together as a team or group members to obtain the expected goal set by the organisation. Achievement of goals and objectives differentiate from organisation to organisation.
Efficiency
Organisational efficiency refers to an organisation’s capability to implement the planning by utilising a small portion of the resources (smallbusiness.chron.com, 2021). It could be an effective element for the organisations to develop organisational effectiveness. This means organisations could make a desired impact or an enterprise that is productive without wasting excessive resources.
Sustainability
Organisational sustainability is referred to leadership, talent management, global information and managing change strategies in order for an organisation to present itself in the global market to face the unique challenges and bringing sustainability in the organisational function. Sustainability efforts could support an organisation in promoting effective management while considering the long-term effect on the business and developing operational effectiveness, quality, and efficiency (Schoen, 2018).
Growth
Organisations are mainly designed to obtainable objectives and more. That includes effective supply of services, accomplishing a project, production of batches of goods or establishing long-term goals such as advantages in the market, market share growth, economic growth and business improvement (Januszewski and Krupcala, 2021).
Competitive advantage
The competitive advantage is considered independent changeable. It has other elements that allow an organisation to manufacture goods and services with the highest quality and offer it to the customers at an affordable price rate than the competitors. Therefore, it boosts overall sales in a huge margin compared to rivals in the market and obtains a competitive edge.
Reputation
The reputation is considered as an important factor for the success of an organisation. Furthermore, reputation for an enterprise comprises informality with the enterprise and faithfulness to future expectations. Furthermore, any organisation could easily obtain objectives if the reputation is present among all shareholders, particularly external stakeholders like consumers, leaders’ judgment in the business community, suppliers, and internal stakeholders like employees (Jeffrey et al. 2019).
Influence
Leaders of an organisation could improve the performance of the organisation by encouraging the performance causality. One important form of influence is the utilisation of particular leadership behaviours by linking with employees, juniors, superiors, and outsiders. Furthermore, some factors influence organisational effectiveness such as performance, inspiration, environment of the organisation, organisational rivalry, social and cultural aspects.
External benchmarking
External Benchmarking is referred to systematic procedures of calculating the current business of the organisation with other organisations in the same industry (Valcik et al. 2017). The purpose of external benchmarking offers clear ideas about the deficiencies and provides solutions to improve business performance and contribute to organisational effectiveness. Furthermore, it could help an organisation to gather critical information for decision-making.
Conclusion
Based on the above analysis, it is concluded that organisational structure plays an important role in improving employee morale, assisting to control expectations, and offering better decision-making and offers steadiness. Furthermore, it also allocates responsibility, manages the workflow and ensures essential tasks are being completed within the deadline.
References
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