Preview

1. Organizational Design and Structure (Advantages and Disadvantages)

Better Essays
Open Document
Open Document
6547 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
1. Organizational Design and Structure (Advantages and Disadvantages)
Individual Assignment 3 (OB)
Dec. 28. 2013

1. Organizational Design and Structure (Advantages and Disadvantages)

Each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals. The organization's strategy determines the organizational structure that will work best for a business at a particular point in time. For example, a small business that hires only experienced personnel, who require limited supervision, will likely adopt a different organizational structure than will a business that hires a number of recent college graduates, who require extensive supervision. (McShane and Steen, p. 362).
In this assignment I would like to offer to your attention an ABC Ltd. IT company, it’s organizational structure, job design and other segments of corporate system. All organizational structures include two fundamental requirements: the division of labour and the coordination of that labour so that employees are able to accomplish common goals. (McShane and Steen, p. 364).
ABC Ltd. is a large IT company with divisional organizational design. ABC’s design is organized around products, projects, and markets. Each division includes its own functional specialists typically organized into departments.
A company has North American division, exploration division, marketing division, production divisions and others. Divisions are relatively autonomous and consist of products and services and are different from those of other divisions. Divisions executives help determine product-market and financial objectives, manage their own hiring, budgeting and advertising. Using this structure, division heads have decision-making power, which they rely on to respond to changes in their particular markets or areas of responsibility quickly. In addition, one division might compete with another division for resources and market standing, just as one company

You May Also Find These Documents Helpful

  • Better Essays

    Caesars’ Entertainment has developed the functional structure. “Functional structure is set up so that each portion of the organization is grouped according to its purpose. In this type of organization, for example, there may be a marketing department, a sales department and a production department.” (Writing, 2014) While every department within the organization is responsible for themselves, they must all work together to make sure the business is successful. The CEO of Caesars’ Entertainment has appointed regional presidents because they are familiar with a specific area. The regional presidents are responsible for targeting the correct market. “Organizational structure provides guidance to all employees by laying out the official reporting relationships that govern the workflow of the company.” (Ingram, 2014)…

    • 1190 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Hrm/531 Week 4

    • 980 Words
    • 4 Pages

    An organization’s ability to implement its strategy is greatly helped by a structure that allocates tasks through a division of labor and provides for the coordination of performance results.…

    • 980 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    Every organization is unique in the context that its goals, the environment within it, the size of the organization and the technology it uses to pursue these goals are different from one organization to another. These key variables are the most important factors that map out how an organization is going to be structured. Therefore, there is no one best way to structure an organization.…

    • 1286 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Mgm101 Midterm

    • 799 Words
    • 4 Pages

    Describe how work is organized in firms utilizing a divisional organizational structure. List and describe two advantages and two disadvantages of a divisional organizational structure. (5 Marks)…

    • 799 Words
    • 4 Pages
    Good Essays
  • Good Essays

    4. Implementation of separate divisions to handle product development has disrupted the previous cohesive interaction between prior existing divisions. A new product development division has taken on a life of its own, opting to market its new developments instead of passing the…

    • 589 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    unit 1 p4

    • 949 Words
    • 4 Pages

    Task 1.2.2- Explain how their style of organisation helps them to fulfil their purposes (P4)…

    • 949 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    SMA Microelectronic doc

    • 1760 Words
    • 8 Pages

    Somewhat functional rather than solely product-designed organization. While plants were viewed as profit centers, major sales transactions and decisions regarding new products were made at a high level in the organization. Divisions had minor sales forces and limited mkt efforts (due to nature of product)…

    • 1760 Words
    • 8 Pages
    Good Essays
  • Better Essays

    When it comes to business as any organizations it requires a structure, based on the resources and demands organization can changed or modify their structure. The most common two structures are vertical and horizontal structure which we see every business organization in global market (Bateman & Snell, 2011). In today’s any business organization theirs and important trait is not only the structure, it is the functions within the organization. An organizing function in management highlights the practices individuals use to interact and work with each other. There are many business organizations that are very successful in their own way. When it comes to a business structure it all depends on what is the product business manufacture and what is the target market, it also depend on is this product goes local or it will be a global one. One of the great organizations that started as an idea then went local to national then bloomed to global social networking giant. That is Facebook organization.…

    • 1200 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Birch Paper

    • 1554 Words
    • 7 Pages

    Each division is operating independently with its own division manager. Also, each division’s performance had been judged on its profit and return on investment (ROI). The company policy of decentralizing responsibility and authority for all decisions except those relating to overall company policy, has been operated with the divisions.…

    • 1554 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    This paper will describe my current occupation and the type of organization that I work for. I will analyze the organizational structure of the organization at my current place of employment and determine if it is a functional structure or a divisional structure. I will discuss the rationale behind its structure, issues that may be caused due to its organizational structure type, and my recommendations in response to the effects that I find.…

    • 931 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Mgt 230 Week 4 Paper

    • 1799 Words
    • 8 Pages

    There are several advantages and disadvantages of divisional structure. The divisional structure focuses the attention of employees and managers on results for the product, the customer, or the geographical area. Divisional structure is flexible and responsive to change, because each unit focuses on its own environment. Coordinating among different functions within the division benefits from singleness of purpose, because each division is a self contained unit, responsibility and accountability…

    • 1799 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Product departmentalization “This form of organization allows personnel to develop total expertise in researching, manufacturing, and distributing a product line. Concentrating authority, responsibility, and accountability in a specific product department allows top management to coordinate actions” (Gibson, Ivancevich & Konopaske, 2011, p. 403). Product departmentalization organizes employees based on product lines or set of services they work with. Each product line has a department of its own, and each department has specialists in all of the functions needed to produce and sell that product such as marketing, manufacturing, accounting, and human resources. The department in this type of company operate autonomously from each other, for example the salespeople can talk to the design and manufacturing…

    • 703 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Advantages-independent functioning, independent decision making, each person is equal in responsibility, each generates own income, total flexibility.…

    • 289 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    2. Design a new organization structure that takes into consideration the contextual variables in the case and the information flows..…

    • 312 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Organisational Structure

    • 438 Words
    • 2 Pages

    Structure that has a number of levels and a chain of command by which decisions are made. Tarmac has a typically hierarchical structure with seven levels.…

    • 438 Words
    • 2 Pages
    Satisfactory Essays