Organisational Structure and Different Types of Structures

Organisational Structure and Different Types of Structures

Organizational structure is the internal, formal framework of a business that shows the way in which management is linked together and how the authority is transmitted. (Stimpson P. 2011) It is basically a framework used to describe the hierarchy in an organization. Every business needs to have its own organizational structure as it helps in identifying the job at each level of an individual followed żeby its functions and it also assists in obtaining their own goals for development. There is a need for every type of organization to have its own structure especially when informatyką comes to large enterprises as informatyką becomes difficult activities for the various departments and functions. Following are the various type of organization structure natomiast business can have:

  1. Functional Structure:

Figure 1: Functional Source: businessmates. org, 2014

This type of structure mainly focuses pan the functions set up for each department of the organization. It works well for small enterprises as each department is mostly dependent on the knowledge, skill, and talent of the other employees owo support themselves. Informatyką leads to specialization and efficiency in the performance, however on the other hand it can also lead owo conflicts as informatyką restricts the employee of different departments to communicate and coordinate with each other because of the boundaries of working in their own department separately.

  1. Product Structure:

Divisional Structure

Figure 2: Product Source: tutorialspoint. com, 2014

Its focus is pan the organization’s product lines and this type of structure can mostly be found in retail stores that exist in a number of cities. Mostly large enterprises that have a different types of products with their own departments and functions have this structure. Despite this structure being faster when it comes owo making decisions, informatyką can also lead to extra costs due to repeated functions for each product.

  1. Regional Structure:

Chief executive officer overseeing North America, South America, Europe, Asia, and Africa.' data-lazy-src='

Figure 3: Regional Source: cnx. org, 2014

Organizations that develop and duplicate departments in various functional areas across the region use this structure as they want to focus on the local strategies of the area to keep up with the competition by studying their preferences and demands.

  1. Multi-divisional Structure:

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Figure 4: Multi-division Source: creately. com, 2014

This structure is used for large companies that operate in wide geographical areas as the number of functions, employees and activities are very large. The benefit of this structure is that it is more specific and rapid but pan the other hand due to the employees being in different divisions the communication is uneasy.

  1. Multi-function Structure:

Informatyką mostly focuses pan achieving the business goals as informatyką diverse functional expertise to work together on it.

  1. Matrix Structure:' data-lazy-src='

Figure pięć: Matrix Source: unc. edu, 2014

This happens to be natomiast combination of the divisional and functional structure as informatyką handles product lines and functions together. Though it provides the benefit of both structures owo be in ów lampy enterprise it can create a conflict when it komes to increased costs and internal complexity.

Culture is compromised of the assumptions, values, norms, and tangible signs of organization members and their behavior. Members of the organization soon come to sense the particular culture of an organization. (Katrin O., 2010) Organizational culture refers to the values, expectations, and behavior that hold the organization together. Informatyką basically based pan customs, beliefs, and rules which develop over time. Informatyką also refers owo an arrangement of the objectives and ideas made żeby the people in the organization and is not only referred to the people employed in the company obuwie also their products, services, and the various process involved. There are four main types of cultures:

  1. Power Culture: This is used by most organizations where the power lies at the top level of management mistrz they make the decisions. It is mostly suitable for organizations that have a small number of employees. The relationship is adaptive and informal which leads to good personal relations.
  2. Funkcje Culture: This is mostly found in the large hierarchical enterprise where each employee has their own role owo perform specifically. Here the employees work more closely owo their job description and are creative in their own way. The relationship is formal in nature.
  3. Task Culture: Here teams are made to complete tasks appointed. Every team ends up making their own cultures as they have their own authority to make decisions. In this type of culture, teams are creative but on the other hand, informatyką can also be costly due to the market price being demanded for their service by the experts.
  4. Person Culture: This is more of an individualistic culture where everyone is allowed to express themselves and make decisions of their own.

The two organizations taken for this report are Nestle and McDonalds.' data-lazy-src='

Figure 6: Nestle Logo Source: consumerbrands. com, 2014

Nestle is a multinational company headquartered in Switzerland. Its main focus is to provide health-oriented food for its customers for a healthier lifestyle following by different varieties of products including beverages. They have products which are specially for people who are very conscious about weight gain, cornflakes that contain iron and proteins for the development of young children. It believes in satisfying its customers at any point of the day and all around the world as its products can be found worldwide. They want to provide reliable quality food products which will contribute towards the nutritional factor of consumers until the brand’s existence. (nestle. co. za, 2014)

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Figure 7: Nestle Organisational Chart Source: nestle. com, 2014

It can clearly be seen from their organizational structure that Peter Brabeck-Letmathe is the main chairman of this multinational organization. According to their website there are 14 members of the Board of Directors. Here the shareholder are the owners of the company followed by them having their own separate legal identity from the main owner.

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Figure 7: McDonald’s Source: logos. wikia. com, 2014

Mcdonalds has been operating since the year 1948 which is more than 100 years ago, they have a well- established market throughout the different countries in the world. McDonald’s is the leading global foodservice retailer with more than 34, 000 local restaurants serving nearly 69 million people in 119 countries each day.

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Figure 8: Organisation Chart McDonalds Source: (Webcache. googleusercontent. com

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