Questions for Organizational Structure - Assignment Example

It is most suitable for firms that deal in single line of product or services. He above mentioned company equally fits to this structure since it deals with single product line. Functional structures have become the most common type of organization structures and are quickly evolving from high levels of specialization to higher levels of efficiency. Therefore, of the middle sized firm in Sothern Florida, the following functional organization structure would be most suitable for their operations.

The functional organization formed by this company needs to consist of a single authority known as the top management. Under the top management, there are many small specialized units that report to it. The top management is where power is emanating from, downwards to the other simple organizational units. The specialized units on the others need to contain people grouped in terms of similarities i.e. possessing various skills. Within this structure, each of these units is meant to handle an aspect of the product or service being dealt with.

Since this is a building and construction company, there is need for group specialization i.e. people specialized in a given area placed together to perform a given task. This leads to high levels of accuracy as well as consistency in the quality. The top management however holds the responsibility of coordination the units together and making them works as a team towards achievement of their job objectives. Functional organizational structure is known to bring people possessing similar knowledge together.

Constant interaction of such personalities can easily lead to emergence of specialists within the group. Introduction of performance management helps in exposing individuals’ ability and level of expertise hence making it easier to train and coach others in the similar. One advantage of using this structure is that it exposes employees to in-depth training thus making them pursue a single career path. This construction company can thus enjoy great performance by employees who are specialized on specific fields hence leading to perfection.

One main advantage of choosing the functional organization structure is to consolidate all the human efforts and abilities. Through this, superiors can share their skills and expertise with their subordinates hence making them develop similar skills. In the building and construction industry, new workers especially fresh minds are never experienced enough to handle certain duties, putting them together with more experienced and knowledgeable persons can help in boosting their knowledge. It also helps in prevention of resource misuse by the members of the organization.

In such a system the most competitive employees are placed within the areas where they are highly specialized. This enhances high levels of performance. Despite enjoying the above benefits, this system can face some setbacks which greatly paralyse its activities. For instance when levels of specialization and production rise, the system develop a communication system that is slow as well as a similar decision making process. This comes as a result of independence of the specialized units having ability to make their decisions hence dragging the process.

With a communication breakdown within the various departments, there is poor coordination between various departments hence making it hard for the processes to flow smoothly. 2. Realizing that projects are the dominant form of their business, the firm described in part (a) above is