Organizational(Organisational UK)chart A graphic representation of how authority and responsibility is distributed within a company or other organization. It usually depicts different management functions and their subdivisions as boxes linked with lines along which decision making power travels downwards and answerability travels upwards. Also called org chart.
Organizational Design It is the process by which managers assess the tasks, functions and goals of the business, allowing them to make decisions about how to group people together to best . The most common approaches to organizational design include simple, functional, divisional, matrix designs.
Simple Design Structure The Simple structure is a basic organizational design structure with low departmentalization, little work specialization, wide spans of control, centralized authority . Organizations that use a simple structure are typically flat. Because there are a limited number of employees in this landscaping company, it is necessary for each employee to perform multiple functions in various areas of the organization, creating little departmentalization.
Functional Design The functional structure focuses on practical specialization whereby similar or related occupational specialties are grouped together (also referred to as departmentalization). Departmentalization groups workers with similar job roles into work units based on a product ,activities performed by employees. Using the idea of departmentalization, the organization will be divided into individual departments, where each department has a specific function and all departments function independently to execute goals.(departments could be :sales and marketing, finance ). It is most appropriate when an organization functions around only one product or service.Generally, all the functional heads will report directly to the company president or CEO. Advantages There are some advantages to group he company by function: People are managed by a person with experience in their same specialty who can adequately understand and review their work. . People work with others in their field, which allows for knowledge sharing and lateral job moves to learn new skills. Disadvantages The functional structure also has some disadvantages, including: Functional areas may have difficulties working with other functional areas. Functional areas may become distracted by their own goals rather than on overall company objectives. For instance, there may be a desire by the I.T. department to implement a new, stateof-the-art computer system, but the company objectives support investment in new products instead. Since the unit doesn't have an overview of the entire company, it may focus attention on goals that it believes are important but which are not priorities for top management.
Divisional organisation: Standardisation of output. Diversified markets (products and services). The duplicates function as autonomous units, without the necessity to coordinate with the other units. It is exactly prescribed what has to be delegated to the divisions.
Matrix organisation: direct cooperation between functionaries from diverse areas of expertise. Project leader with operational authority. Workers fall under the functional manager who stays responsible for the professional aspects
Questions
What is an organisation?
Why do organisations exist?
What types of organisation are there?
What Is an Organizational Structure? Forms of organisational structure
Mintzberg’s five components of organisation. At the top of the organisation is a Strategic apex the purpose of which is to ensure the organisation follows its mission and manages its relationship with its environment. For example, the Chief Executive Officer (CEO), is responsible to owners, government agencies, unions and so on. Below the apex is the Middle line, a group of managers who are concerned with converting the objectives of the Strategic apex into operational plans that can be carried out by the workers. Then there is a group of analysts named: the Technostructure. The organisation also adds other administrative functions that provide services to itself, for example legal advice, public relations, mailroom, cafeteria and so on. These are the Support staff. Finally, at the bottom of the organisation, is the Operating core. These are the people who do the basic work of producing the products or delivering the services.
Some terms to remember:
Organizational(Organisational UK)chart Organizational Design Simple, Functional, Divisional, Matrix designs. CEO R&D
Strategic Apex Operating Core Middle Line Techno-structure accounting finance human resources marketing production span of control centralized authority Customer cliente Manager direttore, dirigente plant manager direttore di stabilimento
Sales vendite