Introduction to Organization Structure

introduction to judicatureal complex body part An administration construction refers to an arrangement of pack, relationship and responsibilities in carrying out partnership activities to pass goal. In addition it besides can define as how a people in the validation are group together and to whom they narrative. Formal social organization is call fored for larger organization that decisions lease to be made about the delegation of various tasks. In an organization social grammatical construction intelligibly indicate and identify between the work activities which define by their note enjoyment.In good organization structure should explain the relationship of authority who reports to whom and for charabancs, who reports to them. An organization structure usually illustrated graphically in an organization chart. There are several(prenominal) types of organization structure such as available organisational structure, geographic organizational structure, ground su bstance organizational structure and product organizational structure. Functional organizational structure refers to a group of people in the organization or surgical incision that hold quasi(prenominal) position and perform similar task. It also indicates that who inform to whom.The traditional steering to of the organization, this is organizing people by function. A geographic organizational structure is typically embed in companies with operation spread over a large region. This includes national and international office. It impart have internal structure and management layers depending on each location. While matrix organizational structure trustingness two or more types of organizational structure usually is product organizational structure and single-valued functionful organizational structure to urinate a unique blend of work environment. harvest-feast organizational structure is the sectionalization based on product and.Employee work in difference whole where by each unit holds the responsibilities of producing the product or service. This structure also kn witness as a breakdown structure. Base on this organizational structure every product structure bequeath lead by incision. Each variant bequeath responsible for each product. 1. 0 Functional coordinate According to OToole. S The margin organizational structure refers to how the people in an organization are grouped and to whom they report. One traditional way of organizing people is by function. Some common functions at heart an organization include production, marketing, human resources and accounting.Base on this definition we can say that in functional structure employee are grouped together into department and hold similar position also perform similar task. Chief Executive Director world Resource animal trainer Finance Manager Account assistants Manufacturing Manager targeting Manager HR police officer FOL Manager EOL Manager Test Engineering Equipment Engineering HR As sistants Payroll officer supervisor Supervisor Engineer Enigineer Appendix 1. 0 Sample of Functional social system for caller-up ABC Referring to above chart, it clearly shared out the task and responsibilities by function.Example for this company has four main functions which are finance, human resource, manufacturing and engineering. Every department has a difference roles and responsibilities. Finance department focus on accounting and payroll, where by manufacturing can foreshorten on execution in order to deliver a good end point by divided into two main focus which is FOL and EOL. Both were lead by area manager to tick off the might of the result. For engineering department also discern into two main foc routines, they are test and equipment engineering. Each 2 function plays a role in order to achieve the company goal.Base on their expertise the result given pass on be very fast, efficiently and effectively. 1. 1 Advantage of Functional Structure The favour of func tional structure is employee can communicate and share information easily as they are grouping together according to similarities in their position. Beside that escalation process also can be through fast as and effectively. In terms of management, especially manager it easy for them to monitor subordinate performance. An new(prenominal) benefit of functional organization structure is coherent chain of command. For example, referring to above chart Account and payroll fall down the stairs purview of Finance department.A clear chain of command is gather uped, this is because it creates standard operation procedures, besides established consequences also enhanced accountability. An other advantages of functional structure is it cans expedited decision making. This is because normally group decision making allow for slow down come near on meet due to the diverse perspectives gnarled. But in this structure because people have similar professional and educational background the de cision making process result be much easier. In addition functional structure also allows work to be d whizz by qualified and skilled individual in the area handicraft enterprise.Hence, another advantage of this structure is that it constricts embody by reducing gemination and use of resource in the organization. 1. 2 Disadvantage of Functional Structure Functional structure also have disadvantage. The disadvantage of functional structure is because functional structure separate by function, as a result employee having a very little understanding or concern for other area instead of their own area. Because of this separation in that location is a barrier in communion and boilersuit cooperation and coordination. Beside that in this structure individual focus is rather than a company focus. 3 2. Geographic Structure Geographic structure often use by large company that operate in many area. The main function of this structure is to co-ordinate the work and employee from differe nce unit and responsible for conducting business in certain geographic locations. Each location entrust have its own internal structure and management layers, allowing them to return the operation. Below is geographic structure for Open University Malaysia. From the chart Open University Malaysia has divided the organizational base on geographic which is northern region, southern region, and central region, east coast and Sabah and Sarawak.Each region will big top certain state in Malaysia. For Northern region it covered Perlis, Kedah, Pulau Pinang and Perak. For southern region cost Johor, Negeri Sembilan and Melaka. Kuala Lumpur and Selangor is in central region. For Kelantan, Terengganu and Pahang indicate as East Coast area. Last area is Sabah and Sarawak region that cover Sabah and Sarawak. Headquarters can easily monitor the performance of each area and might not need to go through every single state to check on the academic progress or activity happened at the particular centre. Open University MalaysiaNorther n region Perlis Kedah Pulau Pinang Souther n region of import region Kuala Lumpur Perak Negeri Sembilan Melaka Selangor East Coast Kelantan Terengganu Pahang Johor Appendix 2. 0 Geographic Structure of Open University Malaysia 4 Sabah Sarawak Sabah Sarawak 2. 1 Advantages of Geographic Structure The advantages of geographic structure are cost saving. By locating resource tightfitting to customer it will help organization to reduce the cost such as travelling expenses. utilize a geographic structure allows companies to use local, pay backd individuals to run the companys operation.This is the most secure in international locations, where companies need help transitioning their operations to specific international markets. 2. 2 Disadvantages of Geographic Structure There are some disadvantages of geographic structure such as companies whitethorn find it difficulties to run this because it does not allow for centralized decision making. ot her disadvantage is that it creates duplication of work also the use of the organizations resource. Hence, due to the geographical area that located far from each other it will create the difficulties in coordinating between departments in organization. 3. 0 Matrix Structure Matrix structure refers to a hybrid structure that combines two or more departmentalization together at one cartridge holder to create a unique blend of work environment. Usually matrix structure is a conclave of product and functional structure. This structure created when there is an assignment or come out need to carry out. In this structure employee are reporting to two difference supervisor or manager. This is the differences of matrix structure from other structure. Example is several engineer might be hired carry forth a similar function by pooling in their expertise.In addition, a single company producing two types of product with the same squad in professional. For effective and smooth functioning, it is mandatory to share the information in matrix structure. Each object will have a project manager and difference team members will report to him. The matrix structure, if implemented effectively, may increase the ability to react the new customer demands. It also may potentially decrease lead times of new product. Usually employee involve in this structure have to report to 2 manager which is immediate manager and also project manager who is the person to monitor the progress of the project.When work is accomplished, the project team may get dissolved, and the workers from different functional areas may get reassigned to other project and task. Chief Executive Director Human Resource Manager Finance Manager Manufacturing Manager Engineering Manager form of project manager FOL Manager Test Engineering manager toil manager Account assistants 1 Payroll officer 1 HR officer Account assistants 2 Payroll clerk HR Assistants Account clerk Supervisor 1 Supervisor 2 Engineer HR clerk Legends The hilted boxes represent staff engage with project. Appendix 3. Sample of Matrix Structure of Company ZZZ 6 Appendix 3. 0 represent matrix structure for company ZZZ. From the chart there is a project conduct by project manager from project department. To ensure this project success the project has involves staff from other functional structure such as finance, human resource, manufacturing and engineering. For this structure usually employee need to get agreement from immediate manager before they can proceed, this is because it will impact their regular job and employee also must has a strong trueness and dedicated to perform the task.There is an opportunity for them to learn a new thing that not in their job scope. The staff involve in this project will report to 2 manager which is project manager and their immediate department manager. Progress of the project will monitor by project manager magical spell their immediate manager play a role to encourage the employee to perform the task with professionally. 3. 1 Advantages of Matrix Structure The advantages of matrix structure are allowing the organization to effectively and efficiently manage the project that is large scale and complex.The specialized employee can be chosen base on the merit of their work and functions that they carry forth. Involving in this structure will give put on the line to employee to success because of the work load and a lot of difference thinking forces is working on the project and therefore the stress, authority and problem solving skill become stronger. some other advantage of this structure is a cost saving. This is because the people working in the project is hired as a part one team also work under other teams.Meaning to say that the employee involve in the project will do the 2 difference job at one time. In addition this matrix structure will provide opportunity for both functional and product skill development. Thus it will reduce barriers between departmen ts and increase the integration of functions. 3. 2 Disadvantage of Matrix structure Even though there are advantages of matrix structure, there is certain disadvantage as well. The disadvantages of this matrix structure are requiring high level of management skill compare to other type of departmentalization.It will impact the company in terms of increasing cost if there is a lot of project manager hired for the job. Another disadvantage of matrix structure is increased conflict levels. This structure also may cause participants to experience 7 dual authority, which can be confusing and frustrating. Very important in this structure is request participant to have a very good interpersonal skill. 4. 0 harvesting Structure Product structure define as an organization base on organizing employee and work in difference units, while each unit hold responsibility of producing a product or service.For example if company perplex 4 difference products, there will have 4 difference division s for these product. Below is a essay of product organization. In other words product structure divides the company into divisions that bring together those employee involved with a certain type of product or market service. Chief Executive Secretary Product Division Division A Beverage Division B Ice cream Engineering Division C Training Manufacturing Purchasing Division D Cereal Milk powder Infant 6 years plus 3 years plus Adult Appendix 4. 0 Sample of product Organization of Company XYZ.Referring to above chart from company XYZ can see that this company has produce 4 products which is beverage, ice cream, cereal and milk powder. For each product will have a difference division to hold in. Each division within a divisional structure contains all the necessary recourses and function within it. 8 4. 1 Advantages of Product structure The advantages of product structure is company has a better control for the product as each product has manage by difference division and each divisio n can act as a separate profit centre. Hence, this structure also can create a positive competition between divisions.As every unit own and produce a difference product it will allow manager and employee to expend their expertise and experience that are related to the overall activity of the product. Beside that these structures also allow management to evaluate the work performance of each division easily. Another advantage of this structure is, because of clear focus on market segment it help to meet customers needs. 4. 2 Disadvantages of Product Structure Product structure may also have some disadvantages. For example manager may only focus on their product to the exclusion of the rest of the organization.Due to each product having own functional area expert it may lead to increasing in cost. Beside that will have duplication in terms of process and material also will increase the company cost. Management may facing difficulties to coordinate across department also one of disadva ntage of this structure. 5. 0 Conclusion In conclusion organization structure is important as it is a system that control and drive company performance to achieve goal. Difference structure has a difference functions, but the objective is the same which is to ensure company running with smooth and achieve the goal.Functional structure is a basic structure and it applies for all organization. It tranquil relevant and can be use for any company and organization. Geographic structure is mostly use for multinational company which has many branches at other country. It also applicable for domestic company and organization such as Open University Malaysia. Matrix structure is a hybrid structure that required commitment and skill especially interpersonal skill to perform the task. For product structure basically is a organizing people base on the product.