Friday, September 6, 2013

Organizational structure

Any operating organization should have its own structure in order to operate efficiently. For an organization, the organizational structure is the stratum of people and its functions. It tells us the character of the organization and the value of it. Therefore it is important to get know of the company's organization structure that you are working for.

Organizational Structure Types


Bureaucratic Structures

  • Pre-bureaucratic structure- This type of structure can be observed in small scale, start-up companies. Usually the structure is centralized and there is only one key decision maker.
  • Bureaucratic structures- When the companies grow complex and large, it required for management. These structure are suitable for tall organizations
  • Post-bureaucratic Structures-  it is still inherit the strict hierarchies, but open to more modern ideas and methodologies.
 Functional Structure

Divisional Structure

These types of organizations divide the functional areas of the organization. Each division has its own resources and function independently. Each division has not much relationship but they are working in the same company. The divisional structure of a business tends to increase flexibility as they are doing the same thing. Divisions work well because they allow a team to focus upon a single product or service, with a leadership structure that supports its major strategic objectives. But as they are working independently, one division will sometimes act to undermine another. Also, divisions can bring compartmentalization that can lead to incompatibilities.

Divisional Structure



Matrix Structure

It is used mainly in the management of large projects or product development processes, drawing employees from different functional disciplines for assignment to a team without removing them from their respective positions. Most of the employees are expert and they have to report more than one person.


Matrix Structure

Functional Structure

It is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks. Employees tends to specialize in a skill so the productivity is high. But it has management issue. The flow of communication is too long, information may be misheard.
 Functional Structure

Conclusion

I think that every organization needs a structure in order to operate systematically. The organizational structures should be used by any organization if the structure fits into the nature or else it would be a mess. But most companies use pre-bureaucratic company when they had just started-up and end up with matrix organization.


Communication 

It is a method to interchange ideas, thought, opinions or information by speech, writing or signs. So organizational communication is the process by which activities of an organization are collected to reach the goals of both individuals and the organization.




The organizational chart in Walmart individual store






This is a tall organizational structure. Every store has their own managers which they will report to the headquarter. This is a division structure. Every store has different people in charge and they don't have to worry about the other store. The managers need to take care of their own stores only.

As this is a tall organization, message or information may be misheard but it thinks that it is still suited for Walmart. Because i think not much message can be passed from the headquarter as the managers can in charge on the stores themselves. So I think to make it better, Walmart has to recruit managers that are trustworthy and can enable to take responsibility.

Because of this organization structure, Walmart had trained a lot of employees which leadership quality. Every store's managers have experience to be a leader as they were trained in Walmart. The managers did not feel that they worked for them, they think that they are helping them. That's why they have responsibility in what they are doing.






1 comment:

  1. I’m glad I found your article. I would never have made sense of this topic on my own. I’ve read a few other articles on this subject, but I was confused until I read yours. https://e-book.business/fundamentals-of-corporate-finance/

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