Companies are designed in a unique way, so that they can achieve their purposes, and the way they organize themselves can both help and hinder their progress. Several segments of organizations, large or small, can obtain better results if their needs are the same as those of the business structure. Due to the high competition in the market, the growth of several companies and technological innovations, it is mandatory for managers to devise effective strategies for their business. Strategy is an action plan capable of assisting in decision making. It is the manager's role, then, to make the most appropriate choice for the business, as well as to make decisions, solve the identified problems, and always aim to capture and fulfill the predisposed objectives.
Organizational functioning is linked to both external factors and internal and is aimed at achieving the aims and objectives of the company. To achieve the goals, every company and, in particular, each of the units and people that are part of it establish a certain policy and perform a series of functions and activities that finally oriented to the sale of a product or service. For the realization of these activities the company obtains and uses a series of resources that they come from their environment. In order to achieve their survival, the company management tries to make sure that the activities are perform in the most appropriate way and that the cost of these resources is less than the income you get from your transformation and commercialization, that is to say, an added value is produced. For this, it is It is necessary that there are control mechanisms that facilitate the internal activities are consistent with the purposes of the company and environment demands.
From a broader perspective, control can be considered as exercises through different mechanisms that not only measure the result end obtained but also especially try to guide and influence that individual and organizational behavior is the most convenient for achieve the organization's objectives. Control direction consists of the measurement and correction of the activity business in order to ensure that the company's objectives and plans devised to be carried out
Organizational culture is of great importance in implementing the strategies in any organizations due to its impact on nature. For any organization on how to accomplish the tasks, organizational culture provides the framework that outlines the methodology for working in. Organizations, and organizational culture provides, with a base that enables them to be distinguished from features of other organizations. As the performance of organizations and their employees and their development is affected by its image. With several factors inside and outside the organization, top of these factors is organizational culture. Consequently, the culture of the organization plays an important role in influencing the behavior of workers in organizations.
The gravity of the cultural aspect lies in the fact that cultural problems (differing values and behavior) may arise. These problems are present but are not visible, they are implicit and does not appear until after a period of time has passed which may be. Its damages were multiplied. The harmony and consistency of the organizational culture with the organization's strategy and structures is considered, but if there are subcultures that conflict with the goals and values of the organization and its behaviors, this is considered internal weakness and imbalance, as organizations must take care of the culture. Organizations must work to reconcile the culture of the organization and its strategy for achieving goals and objectives. (Vas, 2009)
It plays an important role in formulating organizations' strategies in its various forms, and in building organizational structures. Moreover, it helps in shaping the attitudes, identity, and attitudes of workers in organizations, as well as the organization's culture. It gives it its own distinctiveness and contributes to creating a commitment to what is greater and more important to the self-interests of individuals. It also constitutes a frame of reference and behavior that guides workers in the organization. (Austin, 2009)
Big industries must be armed with a positive organizational culture and with a high degree of flexibility. It can achieve the desired improvement in processes, quality, cost elements and create a positive environment. Thus encouraging, providing more new services and innovative solutions to the problems of its customers.
The success of the organizations in implementing their strategic plan is extremely important and urgent in extreme competition in a changing environment nationally and internationally. The nature of organizational culture has a major role in shaping a strategy of organizations successfully.
As having a suitable organizational culture gives organizations a great ability to handle with the variables appropriately, it enables it to formulate the appropriate strategy to achieve the goals and objectives. (David, 2009)
The lack of clarity in the nature of the organizational culture of the organization may reflect negatively on its activities and become unconscious for its strategic tasks, which leads to a decline in its level and dissatisfaction among its workers on the one hand and on other hand on its customers and vice versa. (kreitner, 2007)
Types of organizational structure:
According to Chiavennite (2006), the neoclassical theory of administration assumes that the formal organization consists of hierarchical layers or functional levels established by the organization chart and with an emphasis on functions and tasks.
In this context, an organization is a set of functional and hierarchical positions to which prescriptions and norms of behavior all its members must subject themselves. One of the most important characteristics of formal organization is rationalism. (Mainiero, 1989)
1. Linear structure
This structure is beneficial for the companies working on single product / service and geographic location, informal relationships, less employees, few tasks, & use of poorly improved systems.
In this category, all the sectors are under the supervision of manager who makes decisions related to them. This type of structure leading the communication easy among employees & manager.
Over the time, it is easy for the company adopting the simple structure will grow and make the sectors, activities, and methods more complex creating challenges such as increased information, the need for strategies with the competition and the lack of a more careful analysis of the business. Thus, it is important for organizations adopting simple structure for changing its organizational structure to adapt to the market in which it operates.
2. Functional structure
This category is divided into sectors & departments and each is responsible for performing their activities within the organization and later passing through manager’s supervision. This division is performed in way facilitating the areas that are able to work with high autonomy.
It is linked with few employees and manager allowing them to share information easily, simplify mechanisms & defining the responsibilities & duties of each area.
Here, manager coordinate and collaborate among different sectors and work for ensuring individual actions and decisions do not hinder development of company. However, they must be conducted in way that benefits everyone, including teams and organization.
One of the primary advantages of this structure is that each employee has a clear idea of who his superior is. Normally, each employee is headed by a manager who is personally responsible for managing the individual careers of the employees belonging to his team, as well as for the entire team itself and for the management of the projects on which his team is engaged. Among the responsibilities of the project manager framed in a hierarchical organization, certainly cannot be missing: the clear identification of the objectives, the optimal management of the performances, the appropriate assignment of the tasks and the project scheduling.
Bringing improvements in process
Facilitating specialization in higher hierarchical levels
Facilitating team building & team collaboration
High flexibility for the company to adopt
More value given to the field specialists
A disadvantage of this system is that development hours not used by team members engaged in one project cannot easily be transferred to another project. In other words, in a hierarchical structure, the projects are developed independently of each other. Each of them requires an assigned team that cannot be involved (except in exceptional cases) in other activities outside the project itself.
Because of different managers involved in the project, confusions are created
Also, there is no unity in orders given by different managers leading to different directions creating disturbance within the project
Coordination and collaboration are difficult
It is more expensive
Confusion in achieving the accurate objectives
High inter-functional conflict.
3. Matrix structure
There are two schools of thought on the matrix management system and they are totally in opposition to each other. The first promotes this method, considering that it increases efficiency and productivity through the reduction of downtime present, for example, in the development phase. The second, however, believes that this methodology is an unfavorable point for efficiency as it considers the use of accessory resources unnecessary to management to be wasteful.
The third types of organizational structure are called matrix, and it is the most developed, as it is a combination of simple and functional structures. In it, the teams are formed by professionals with different specializations. Usually used in large multinational companies, it combines the benefits of the other two types. It is indicated for organizations working on projects, such as those in the engineering area. The negative point is that it is a model that can create conflicts of interest and power, since most areas of the company will have a double management. Communication can also be impaired, as it is not usually clear. So, it is important that it is very well structured so that conflicts are avoided and hinder the progress of operations.
This structure is usually used in large companies, which operate in a wide geographic area or have sectors responsible for different types of products or market areas. For example; A car parts factory can be divided into sectors, according to what each one produces. The advantage of this structure is that needs can be met more quickly and more specifically.
One of the major advantages of this type of system is that the objectives are clear and easy to achieve. The project's organizational matrix structure brings together staff with the specific skills and knowledge necessary for the project. This gives employees the opportunity to work in teams with colleagues from other disciplines. Together, they communicate better and exchange more innovative concepts and isolated from the silos of administrative and functional organizations.
Matrix structures are more complex. Authority lines are operated vertically and horizontally with two-head staff. Employees often receive conflicting instructions from project managers and job managers, creating pressure and confusion when setting priorities. The Matrix project managers need special talents. Since they do not have individual power, they should be able to compromise and negotiate. They should be tolerant of conflict and be able to deal with difficult situations.
This type of organizational structure has a high cost, due to its size and scope. It is not recommended for small businesses, although they are able to use a smaller scale divisional structure, with different offices in different parts of the city, for example, or with the division of several sales teams to serve different geographic areas.
For small and medium-sized enterprises (especially for small ones) the strictly hierarchical structure does not find easy application. It is easier to foresee a matrix organization in which more resources can follow, if necessary, more construction sites and therefore have greater flexibility in project management. The hierarchical structure is certainly strongly reflected in large companies where it is easier to divide resources clearly.
Austin, T. D. (2009). When Enterprise and Organizational Cultures Do Not Match. Gartner Research.
David, F. R. (2009). Strategic Management. New Jeresy ,.
kreitner, R. (2007). Organizational Behavior. The McGraw-Hill companies,.
Mainiero, L. A. (1989). Developing Managerial Skills In Organizational Behavior. Englewood Cliffs, New Jersy.
Vas, C. l. (2009). "Organizational Culture and effectiveness in business school: a test of the accrediation impact". Journal of Management Development.
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