In: Economics
Suhanthi and Annie both work at fast-growing tech firms, but their organizations are very different. Suhanthi works at a place that is very centralized and structured. Jobs are formalized and the hierarchy is defined. Meanwhile, Annie’s workplace is very organic in nature; employees are encouraged to seek input from others throughout the organization and they are pushed to seek further development and training. Please name and describe in your own words five types of organization structure from the textbook. Also describe how each type of organization structure would impact the culture of the respective organization.
ans....
Organization structure is a process through which people,
communication, authority, power, responsibility, and integration
among different working people can be achieved. It has many
advantages associated with its types. The five type of structure
can be explained in the following headings,
1)Line organization structure :
In this, every employee will be directed from the top authority of
the organization.
Here, rules and procedures will be important for the people to
grow. Communication flows from top to down only. Many time rigid
and complex policies might be framed. It is useful in a growing
environment where faster decisions are important.
2)Staff organization:
In this there are two type of authority can be traced one is line
and second one is staff.
Line authority will have direct chain of command. Whereas staff is
given supportive role to assist the line authority or mangers.
Here, a people might have to work under the guidelines of both the
authority. There will be both autocratic as well as supportive
leaders. An average , leadership can be identified with few people
supporting the work completion and few will be count the number of
unit produced.
3)Functional organization :
In this structure will be formulated on the basis of different
functions like, HRM, Marketing, Operations, R&D, and Finance
etc.
There will be some functional leaders who will be very knwolgeable
about their domain. They will define new dimensions for the
functional objectivity. They will write policy guidelines for
functional areas. For example: employment policy, ethical
guidelines etc.
4) Divisional organization:
In this people are categorized under department based on product,
geographic, project etc. FmCG companies adopt this approach
frequently. In this structure, leaders will be responsible to
complete the task associated with their respective departments.
They will have to integrate policies and guidelines for their
people.
5) Mechanistic vs. organic structure :
Many organizations develop their own structure on the basis of
their, growth, people, type of business, goals and employee centric
aspirations etc. These are called organic way to manage the
corporations. Annie’s organization is an organic one. Mechanistic
organizations can be traced by rigid structure, one way
communication, limited growth, production emphasised leaders
etc.
In terms of leadership, organic leaders set their own vision,
mission and parameters to achieve the unique goals for the
organization. In mechanistic structure, leaders behave to their
subordinates just to accomplish production centred task. They will
be rude and rigid. They will not like people and their
welfare.