Oganisation
The managerial task of organisation is the process of putting and setting together individuals with the necessary resources in order to achieve goals. One way this is done is by
creating and managing both an informal and formal structure within the said organization. The formal structure clearly shows the various job titles and positions in the organization along with the prescribed hierarchy. While the formal structure presents the official positions, there are times when the relations in the informal structure of the organization become very helpful. There are times when employees tend to provide greater support for one another during critical times via the informal structure.
The more traditional organizational structures are those which evolve because the employees specialize in certain roles and functions. There are three major types of traditional organizational structures are functional, divisional and matrix. In the functional type of structure, people with similar tasks and functions are grouped together. Functional structures are able to create economies of scale, are able to solve highly technical issues, and there is a high level of skill development within the organizational unit. Divisional structures on the other hand are based on putting together employees with the same task or geographical location. There is more flexibility in the organization as it responds to environmental changes, and the expertise of the employees can be concentrated on specific segments or markets. Changes in the size of the organization can also be made by adding or reducing the number of divisions, making the changes quite easier to implement. Finally, matrix structures could be said to be hybrids of the functional and divisional structures. Thus, employees may belong to more than one organizational unit. A common example of this would be the case wherein the manager of the manufacturing unit is called on to participate in a project for a new product that is to be launched. As his expertise is needed for the project, he then joins the project team while still working in his own department. Matrix structures are able to offer inter-functional cooperation, enhanced customer service, better decision making.
Organisational design is influenced by and premised on several factors: people, environment, organisation size, technology and management strategy. Bureaucratic designs are centralised, rigid, highly specialised and very formal and impersonal. On the other hand, the more adaptive designs are those that are very flexible. Power and authority are shared within the organisation, and tasks are shared as well. The environment in the organisation is also more informal and personal. Finally, there are the virtual designs as well. Virtual organisations are those that are defined by the presence of collaborative networks among networks. These designs make use of the latest in information communications technologies. These designs also afford more mobility at work, and are also hybrids in the sense that individuals can become part of a virtual design and another design at the same time.
Team structures are very important in organisations today. These team structures have also evolved into network structures because of the Internet. Companies can now operate with fewer employees and yet produce the same or even greater output. It is expected that these structures will continue to evolve in the future.
Reference
Drucker, P. 2012. The Practice of Management. Boston: Elsevier.
