Structuring the organization is very important for the performance of any organization and the future business of the organization. Also, reviewing and restructuring or reengineering of the organization structures is a continous process.
The function of the organization structure is to provide a framework of responsibilities, formal reporting relations, and includes numbers in the hierarchy, span control of managers, grouping of individuals into departments and into the total organization. Also, organization structures must ensure effective communications and coordination across departments. Organization structure is represented in an organization chart for understanding how the organization is managed. Communications or information linkage in the organization structures are very crucial and are designed vertically and horizontal to meet the organization objectives. Each type of communication would have merits and disadvantages and managers have to select the most appropriate structure to meet the demand of the organization. In the current open aggressive market with the world without borders and boundaries, organizations have to continue monitoring the performance of their structure to meet the demands of the market. There are many factors which influence the design of the organization structure and this includes organization overall strategy, size of the organization and the stability of the external environment.
(Robbins, P. 2011)
(Robbins, P. 2011)
Departmental grouping options
Departmentalization is a method of subdividing work and workers into separate organizational units that take responsibilities for completing particular tasks. An example for this is the Sony company which has separate departments for electronics, movies, music , computer games and theaters. The employees in this option have a common supervisor and resources and this grouping includes functional grouping, divisional grouping, multi-focused grouping, horizontal grouping and virtual networking grouping. Functional grouping includes employees who perform similar work or functions, for example marketing staff in the marketing department report to a common supervisor. In divisional grouping, staffs are grouped according to what the organization produce whereas a multi-functional grouping organization may need to combine function and product division or product division and geography. In horizontal grouping, the staffs are grouped around core work processes and, in the virtual group which is the current approach under this option, departments are linked electronically to share information and ease coordination.
(Konopaske, R. 2009)
Functional, divisional and geographical designs
Functional structure activities are grouped together by common function from the bottom to the top of the organization, for example the engineering department. This design is effective when in-depth expertise is important for the organization.
According to Robbin P., 2011 the strengths of this structure are: allow economies of scale in the function departments, enable in depth knowledge and skilled developments, enable the organization to accomplish function goals and is best for only one or few products. The weaknesses of this option are: slow response time to environment changes, delays in make decisions and less innovation.
(Robbins, P. 2011)Geographical designs
Every region in the country may have needs and each one includes all functions required to produce and market product or services in that region. Geographic departmentalization organizes work and workers into separate units responsible for doing business in particular geographic areas (managing effectively) .
For instance, Apple Computer Company re-organized from a functional to a geographical structure to facilitate manufacture and delivery of Apple computers to consumers around the world. Apple used this type of organizational structure to focus managers and workers on specific geographical thrust. Actually, regional structure allows Apple to concentrate on the needs of customers in a geographical area.
( Williams, R. 2010)
( Williams, R. 2010)
Each business structure has a unique impact on the success of the business. Also, it has an influence on the behavior of individuals and groups who make up the organization. For the managers to be successful they need to have a unique set of skills to use the organizational structure effectively. For the organization to be more successful I suggest that they need to create a phone exchange system to serve the customer via a new way; also if they execute electronic /internet money exchange , their service will be faster.
References
Robbins, Peter S. Fandamentals of Management. USA: Prentice Hall, 2011. Print.
Williams, Charles C. Managing Effectively. London: Pinguin, 2010. Print
Konopaske, Robert S. 2. Organizations: Behavior, Structure, Processes. Singapore: McGraw, 2009. Print.