Organisational design and structure

Week 3

Organisational design and structure

Every organization must have structures which help the organization run fluent. A structure means laying upon laying. At the top of the structure, there are a few chiefs and managers which lead more employees. A structure is very important for an organization. As for the division of work, when we need to divide the work in an organization, how to design different type of work to suitable employees? We should divide by function, product or service, location and customer.

For example, a global organization wants to build up their brand in the other countries. They can choose or hire some local employees to design the marketing of the company’s transnational business. It is because they understand the local culture. They can set up a more suitable business plan. Starbucks is a good example. Some stores of Starbucks’s style like a Chinese restaurant. This idea is designed by a group of Starbucks Chinese staffs.

 

Moreover, almost of an organization’s structures would be centralization or decentralization. There are different management skills, which suit for different situation. Centralization is easier management control and possibly a reduction in overhead costs. Decentralization can enable better decision making because the people closest to the customer and the market can make the decisions and they know their customers needs.

Lastly, Span of control and chain of command which are two main types of an organization structure. Those two structures also have some benefit and drawback. Span of control is suitable for an organization which aim having a good relationship and communication between subordinates and managers. Chain of command is for an organization which aims to run fast and smoothly.