Organization structure is a process through which people, communication, authori

Question

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.

Explanation / Answer

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.

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