Why do organisational structures differ? Which is the best organisation structure?
“The term organisational structure refers to the relationships between the various functions and positions in an organisation. Structure determines authority and responsibility for particular tasks/activities. It also specifies the routes of communication between different parts of the organisation.” (The Open University). An organisational structure determines how the business operates and thus the company’s performance. There are a lot of organisational structures; within this essay we will be looking at: functional, matrix, regional, product, tall, flat, centralised and decentralised.
Functional structure is an organisation with a structure that is “divided …show more content…
Resources can take many shapes or forms, including raw materials, workers, and even funding. If one company maintains the majority of a resource, then another company will become dependent on it in order to operate, creating a symbiotic relationship. Too much dependency creates uncertainty, which leaves organizations subject to risk of external control. External control may be imposed by the government or other organizations, and can have a significant effect on operations, such as funding or personnel policies. Managers strategize alternative business plans in order to lower this risk.” (study.com, Resource Dependency Theory: How External Resources Affect Organizational Behavior). Resource dependency theory was founded by Jeffrey Pfeffer and Gerald R. Salancik in 1970’s. This shows that there is a resource dependency which also means there can be a resource uncertainty, if for example a raw materials company (chicken) has a reduction in the production of the raw materials, this will create a knock-on effect on the businesses that rely on the raw materials provider. Another example is the resource dependence in the US for nickel as this makes up many items that are for everyday use including coins, keys, razors, etc. Nickel is also used for bigger productions such as …show more content…
Having a small workforce can empower the staff as they will feel more trusted as there will be bigger loads of responsibility delegated to them. They can also benefit from matrix and functional (flat functional structure) as this helps with the need for initiative and more opinions and crosses over each department but it also shows where the workers are meant to report to. As long as these structures are flat the business will benefit as the communication will be more efficient and faster meaning the business can adapt quickly to change. They should also employ a centralised approach to the organisational structure as this means everything is based within the centre and the workers will be able to input rather than running through a long chain of
“The term organisational structure refers to the relationships between the various functions and positions in an organisation. Structure determines authority and responsibility for particular tasks/activities. It also specifies the routes of communication between different parts of the organisation.” (The Open University). An organisational structure determines how the business operates and thus the company’s performance. There are a lot of organisational structures; within this essay we will be looking at: functional, matrix, regional, product, tall, flat, centralised and decentralised.
Functional structure is an organisation with a structure that is “divided …show more content…
Resources can take many shapes or forms, including raw materials, workers, and even funding. If one company maintains the majority of a resource, then another company will become dependent on it in order to operate, creating a symbiotic relationship. Too much dependency creates uncertainty, which leaves organizations subject to risk of external control. External control may be imposed by the government or other organizations, and can have a significant effect on operations, such as funding or personnel policies. Managers strategize alternative business plans in order to lower this risk.” (study.com, Resource Dependency Theory: How External Resources Affect Organizational Behavior). Resource dependency theory was founded by Jeffrey Pfeffer and Gerald R. Salancik in 1970’s. This shows that there is a resource dependency which also means there can be a resource uncertainty, if for example a raw materials company (chicken) has a reduction in the production of the raw materials, this will create a knock-on effect on the businesses that rely on the raw materials provider. Another example is the resource dependence in the US for nickel as this makes up many items that are for everyday use including coins, keys, razors, etc. Nickel is also used for bigger productions such as …show more content…
Having a small workforce can empower the staff as they will feel more trusted as there will be bigger loads of responsibility delegated to them. They can also benefit from matrix and functional (flat functional structure) as this helps with the need for initiative and more opinions and crosses over each department but it also shows where the workers are meant to report to. As long as these structures are flat the business will benefit as the communication will be more efficient and faster meaning the business can adapt quickly to change. They should also employ a centralised approach to the organisational structure as this means everything is based within the centre and the workers will be able to input rather than running through a long chain of