Table of Contents
Number | Title | Page |
1 | Introduction | 2 |
2 | Case Study | 4 |
3 | Recommendations | 7 |
4 | Conclusion | 9 |
5 | References | 10 |
The relationship and collaborations between a business, and also identifying how the chain of command runs through the different stages are defined by the organization structure. An organization normally will set up their company’s structure based on their own organizational function. Function and structure influence each other, even though the company does not apply it in their organization.
That is why most of the companies are known as adopt functional structure in their organization. Specific functions ...view middle of the document...
In-depth knowledge and skills are developed within the employee because of this and it help the organization to achieve their functional goals.
When employees become specialized it leads to efficiency in the operation and it also increases the productivity level of the organization. Because of this expert workers tasks can be performed quickly, efficiently and with more confidence on them, thus the occurrence of work related errors are reduced. Besides that, employees can see a clear nature in their career path and they will have self-motivation to move up the hierarchy and advance in their careers. Bringing together the entire human and information resources to meet the goals of the organization is the main target of a functional structure in an organization. Small businesses can use functional structure in their organization to they can focus on one product or service as they can maximize performance. This can be achieved by encouragement of peer to peer cooperation between various levels or management through coordination and supervision.
Disadvantage: Management Issues
Communications between the functional units can be rigid because of each unit have their on standardized ways of operation. This can lead to slow and inflexible decision making process. Since the functional units in the organization are not accountable to each other, poor coordination between the functional units can occur. Employees motivation will be affected since there will be lack of innovation and restricted view of the organizations goal. The level of autonomy within units might increase, making it difficult for the organization to coordinate all the units efficiently as their company grow hence creating more functional unit.
Disadvantage: Unit Coordination
The level of cooperation between the functional units is sometimes compromised even when functional units often perform with a high level of efficiency. The employees may have difficulty working well with each other as they may be territorial and unwilling to cooperate as each one of them wants to show off the own performance for their promotion and advancement in their career. Delays are caused by the occurrence of infighting among units reduced commitment due to competing interests, and wasted time, and finally making projects fall behind schedule. This ultimately can bring down production levels overall.
“Structure is the best way to channel employees’ efforts toward productive ends”. (Denney and Michael, 2006)
Organization structure is very important in an organization and can be structure in several ways, such as product structure, functional structure, regional structure, process structure and also customer structure. The structure of an organization can determine the modes in which it manages and performs.
Most of the hotels in the world are using the functional structure organization to run the business. For example, one of the famous hotel’s brands in the...