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Organizational Structure Master - Essay Example

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Organizational Structure Master

There are two main types of organization structures - mechanistic and organic structures. The mechanistic organization structure functions like a bureaucracy where proper channels are used and efficiency is emphasized. The organic structure is free flowing, has numerous communication channels, and emphasizes quick response and innovation (Bartol and Martin, 1998, p. 251 - 278).
Organization structure should be chosen based on its strategy (Bartol and Martin, 1998, p. 251 - 278). For example, suppose an organization is making or delivering large volumes of only a few products or services in the same geographical area, and these are very similar to each other. All the organization needs to do is co-ordinate the various departments, then departmentalized or functional structure works best. Departmentalization allows people to specialize in a function, and achieve economies of scale. Suppose the organization is producing or delivering several products or services in the same geographical area, and these products are very dissimilar from each other. Then, it is better to organize along product lines. This is because one product does not have anything to do with the other, there are no economies in functional structure for this case. ...
(7) horizontal coordination is used to coordinate tasks, such as direct contact between managers, the assumption of liaison roles by individuals, task forces and teams, and integrators;
(8) multiple lines of command;
(9) high group accountability; and
(10) joint specialization ,whereby employees work together to coordinate tasks.

3. ALIGNMENT OF ORGANIZATIONAL STRUCTURE TO STRATEGY
Organization structure should be chosen based on its strategy (Bartol and Martin, 1998, p. 251 - 278). For example, suppose an organization is making or delivering large volumes of only a few products or services in the same geographical area, and these are very similar to each other. All the organization needs to do is co-ordinate the various departments, then departmentalized or functional structure works best. Departmentalization allows people to specialize in a function, and achieve economies of scale. Suppose the organization is producing or delivering several products or services in the same geographical area, and these products are very dissimilar from each other. Then, it is better to organize along product lines. This is because one product does not have anything to do with the other, there are no economies in functional structure for this case. On the other hand, giving each product its independent departments lets the product managers serve their customers more efficiently. Suppose the organization is producing or delivering several products or services to several different customers whose demands are very different. Then it is better to organize along customer lines so that the managers can work towards satisfying each customer according to his or her needs. The same logic goes for organizing on the basis of country or region. If the organization is ...Show more

Summary

In today's business environment, where strategies of each organization are not much different from those of others, it is difficult to develop big-bang strategies that will hit the gold mine. Organizational structure - how the organization is arranged to facilitate decision-making and execute its strategies, is what sets one business apart from another…
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