Question

For a global business, organizational structure is not important. Do you agree or disagree? Defend your answer.

Answer 1

Organisational structure is important for every type of business specially for a global Business. Global Business are those business which works domestically as well as internationally. Organisational structure is the formal arrangement of roles, responsibilities and relationships with an organisation which allows which allows business to conduct better negotiation and better business deals. It is a framework within which business activities are performed. Every company needs organisational structure in which the overall work is divided into small task show that there can always be someone who can be held responsible. Organisations that are large in size and that operate globally set up different divisions and departments so that work can be handled effectively e n efficiently.

the two commonly used organisational structure include functional and divisional structure. Functional structure is suitable for doors business that are small scale and deals in single line of product. Where as divisional structure is suitable for for those businesses that the division multiproducts and have different division or branches.

Within the divisional structure, functional structure may exist. For example a company ABC is operating globally and has its head office in New York. This company is operating in India, China, srilanka and newzealand. It means that the company has four divisions. These divisions will report to the head office. Each division can further we divided into functional departments.

Is division is responsible for their performance and profitability. It is easy to fix accountability. One division cannot put blame for its poor performance on other division.