Question

Discuss some costs and benefits of the different management structures. If you were a CEO of a company which structure would you like to see?

Why are trust and commitment so important to strategic alliance? These are also important in our personal life. How so? Do you have any examples?

Answer 1

In the organisation, the two most famous and important management structures are functional structure and divisional structure.
Functional structure is that management structure there work is done on one product line it means when an organisation is manufacturing only one product then there is a use of functional structure in the organisation.
The cost and benefits of the functional structure are easy to set up; it means the functional structure is not so complicated which involves easy cost structure and the setup cost which can be managed by medium enterprises also.
Functional structure is basically meant for single streamline organisational work in the company.
The decision making in the functional structure is good and it is a very easy system of the management where everything is under the control of one department.
Next management structure is the divisional structure which is used for two or more products in the organisation and the main purpose of Divisional structure is to manage and organise a separate Department for or separate functioning in the organisation.
The setup cost and benefits of Divisional structure are very good because here there is no confusion and there is no overlap of the work in the organisation. Every person in every department knows their work very well and they can arrange all the things under fixed guidance which is very essential for the management of various things.
Trust and commitment are so important to strategic Alliance because it creates a sense of accountability and responsibility of the management towards the stakeholders and it is very important for the creation of goodwill in the market of the organisation without trust and commitment trade relations are not possible and it is not an easy task to capture the market share or to build the future relations.
These are also important in our personal life because if you have trust then you can easily build your relationship on a good path, therefore, it is important to work according to the assigned trust and the commitment among the parties.
The best relationship among the family members for the sister concerns in the organisation where one concern is responsible for the work calls another concern.