Organizational Structures Assignment

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24-7-custom-writing-serviceOrganizational Structures Paper

Organizational Structures Essay

 

 

Organizational structure is a key determinant of successful execution of the organizational strategy. More importantly organizational structure is central to information flows, decision making, and work relationships. It influences managers to coordinate and control complex tasks that are integral parts of organizational growth. According to Andrade (2016), an ideal organizational structure should match essential requirements of strategy, bolster implementation of the strategy, lower bureaucratic cost, and enhance efficiency.

There are four widely-known and used types of organizational structures: simple structure, functional structure, matrix structure, and multidimensional structure. In simple structures, the executive is in charge of all major decisions. The main features of simple structures include few rules, limited specialization, limited specialization, minimal training and planning, and lack of elaborate support system (Hough, 2010). Advantageously, it is flexible and involves low administrative cost. However, there is almost no room for creativity and innovation. On the other hand, functional structures are designed based on functional lines. Each function comprises of major segments of firm’s value chain— sales and marketing, R&D, engineering and design (Srivastava and Verma, 2012). Each component has a line manager who is accountable to CEO. Functional organizations great task specialization, which enhances realization of scale of economies and promotes learning. However, the arrangement limit flow of information across departments and cooperation. In a matrix structure, organization is aligned along two or more organizations simultaneously. This enhances communication and coordination. However, they are characterized by inefficiencies and gawky bureaucracies.

 

 Multidivisional structure is organized in a decentralized fashion, working in a set of operating divisions, which are organized in terms of product, customer, or geographical line, or market. The central corporate headquarter allocates resources, monitors and divisional activities, as well as offering assorted support functions (Merenda, 2016). Since Amazon has divisional units across most of the countries, it would be plausible for the firm to adopt a multidivisional structure. The arrangement helps in minimization of coordinating division-wide activities while bolstering the management’s efficaciousness to control complex operations...................GET A PLAGIARISM FREE COPY