advantages of an effective organizational structure

One case study for the benefits of organizational change taught by the University of Southern California Master in Communication program took place in Canada. The following are some top benefits to use the organizational chart: The organizational chart helps build and design the organization structure … Process departmentalization is departmentalization based on customer or product flow. Disclaimer 9. A disadvantage is that … Decentralized Structures. The only way for a collaborative structure to be successful is to have each person involved in the structure participate in it. Centralized vs. Importance of Organisational Structure 3. Organizational structure is … Furthermore since each job is well described in terms of qualifications and duties, the promotional stages can be more clearly established. Since the goals are clearly established and resources clearly identified, both short term as well as strategic planning becomes more focused and realistic and such planning contains the provision to permit changes to be made in the right direction including expansion and contraction of facilities, operations and activities when it becomes necessary. The drawback is that it’s trying to encourage … Since each person is assigned a particular job to perform, the responsibility of performing that job rests solely with him. So within the sales department, there may be mini departments dedicated to retail customers, wholesale customers, and so on. A responsibility is generally taken as the obligation to perform any tasks assigned to you. The concept of unity of command is another important concept that is part of this structure. Content Filtrations 6. These flat organizational structure advantages and disadvantages show us that when it is implemented with a clear plan, it can be successful. Effective decision making requires an adequate amount of information and that information can only be obtained where there is good communication. It involves lines of both authority and accountability as well as what kind of behavior is considered acceptable within the organization. It results in traceability of outcomes and the work interdependency of that particular task is reduced to a minimum. In fact, to a certain degree, organizational structure is also about how the company relates to its external environment. A manufacturing firm, for example, may have a chemical mixing department, an assembling department, a packaging department, and so on. None of them is effective in certain situations. The benefit of a practical structure is that people are devoted to a solitary capacity. They argued that these factors imposed economic or other constrains on organizations that forced them to choose a certain structure over others. Meaning of Organisational Structure: Organisational structure means a developed enterprise being operated to achieve the given goals. The Advantages of Horizontal Organization. Accountability, predictability, structure and job security are just a few to mention. There is easy … A horizontal organizational chart usually has two or three levels, and the business owner typically holds the top position on the chart. There are also some important concepts attached to this kind of organizational structure. The right organizational structure will make your employees happier and they will, therefore, be more productive on the job. Ultimately, there are a number of advantages of an organizational structure. Information will flow easily in all directions and the employees will feel heard and like they have a say in how the organization is run. This type of organizational structure is a highly formal one where the jobs are well standardized and there are clear rules and protocols that guide employee behavior. What Are the Primary Design Elements of Organizational Structure? Individual employees and departments, therefore, will specialize in doing certain parts of activities, rather than entire activities. Ultimately, there are a number of advantages of an organizational structure. She's been published in several business publications, including The Employment Times, Web Hosting Sun and WOW! There are six such systems. Importance or Significance of a Sound Organizational Structure! Consequently, the flexibility of the organizational structure … Meaning of Organisational Structure 2. The faster the enterprise can adapt its organizational structure to the new demands, the higher its capacity to survive is. It involves the structure … This is the traditional kind of organizational structure and depends on a line of authority that starts right at the very top of the organization and goes on down to the lowest level employee. The employees will be happier, the leaders will find it easier to lead, and the customers will be happier, too. Whether the organizational design and structure is complex, a product is complex and will offer a transactional process, the added cost of complexity shall also drag the performance a bit further. The advantages and disadvantages of a hierarchical organizational structure involve communication, innovation, and collaboration. Functional departmentalization is when jobs are grouped according to the functions they have within the organization. A well-defined organizational structure can allow important customer service issues to escalate immediately while giving individual customer service representatives the autonomy to take … An ideal organizational structure based on clear-cut demarcation of authority, higher range of responsibility, discretionary freedom granted to personnel, incentives offered for specialized work etc., … system in general and especially of their organizational structures. While every position has its rights and privileges, those rights and privileges also come with some responsibilities attached. The second … A number of factors, including the rapid evolution of business models and the inevitability of change within organizations, demand that business leaders master the ins and outs of organizational change. TOS 7. Business Models & Organizational Structure, How to Compare & Contrast Organizational Structure. 5. Factors for Designing It. Nicky is a business writer with nearly two decades of hands-on and publishing experience. The organizational structure examples are usually a subject of study so that there can be a perfect structure for a particular company. Each manager in the organization is responsible for an area that depends on that manager’s specialization. There are several advantages to using the matrix organizational structure. A fair and equitable wage and salary schedule is based upon the premise that the jobs with similar requirements should have similar benefits. It may take the form of combining product and geographical divisions or functional and divisional structures, operating in tandem. It Is Cost Efficient As mentioned, in this organizational structure, there are fewer (or no) manager layers between the executive and the staff. Some of the advantages of a pure line organisation are: (i) A line structure tends to simplify and clarify responsibility, authority and accountability relationships. Meaning of Organisation Structure 2. In addition, it enables … Content Guidelines 2. Benefits of an Effective Operational Structure: A well-designed organization structure promotes success and facilitates company growth and profitability. 1. They also create … The way these jobs are grouped vary from one organization to another and can be according to one of five different forms of departmentalization. Product departmentalization occurs when jobs are grouped according to the product line. Image Guidelines 5. Understanding the interplay between these two concepts can help you to design the most effective performance management systems for your organizational structure. Image Courtesy : images.flatworldknowledge.com/carpenter/carpenter-fig07_001.jpg. Each job is divided among a few specialized parts and they all carry out their tasks to help achieve the overall goal of the job in question. Copyright 10. It discusses the characteristics, advantages and disadvantages of different types of organizational structures, as well as when particular structures may be effective. An organization can combine more than one kind of organizational structure effectively. Because of a sense of belonging and high morale that a well-structured organization develops among employees and also because of clear-cut accountability, recognition of skill and appreciation for their contribution towards organizational growth, the employees develop their own initiative and a spirit of innovation and creativity. Note that these organizational structures do not have to be used exclusively. The levels of responsibility and authority are … One benefit of the matrix structure is that it allows cross-collaboration between staff and departments that may not always have opportunities to work together… Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed … The concept of authority asserts that each managerial position has certain rights and principles. There are clear rules for who is expected to report to whom. This makes it possible for them to effectively carry out those tasks. So for example, a tech company may have a mobile phone department, a home appliances department, and so on. According to Lounsbury Fish, “Organisation Structure … These plainly characterized jobs and desires restrain perplexity. They should be conceived as an actual organization with their own structure, management, leadership, and strategy. 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