Organization Structure
Student’s Name
Institutional Affiliation
Functional organizational structure
The functional organizational structure stands out as one of the most common structures in most firms today. This structure groups the company’s workforce according to their job functions and specific skills. Employees in various departments can concentrate on their specialty areas to achieve desirable results (Awa, 2016). One striking feature of this system is that it does not observe the principle of unity of command. As such, a single worker does not report directly to his boss and obtain information from other specialists within the firm. Staff specialists are awarded considerable authority, as they are in charge of running various departments within the firm. The smooth running of these departments is critical in fostering the success of the organization.
This system allows the executive to carry out a limited number of operations. Such is due to the division of the organization’s services into various departments. Employees in the multiple departments hence perform several business activities. As such, the executive does not have direct control of the routine operations of the firm. The functional manager allocates all the resources, sets the goals, and assigns the budget required to fulfill the organization’s various objectives.
Rationale
Functions or departments
The significance of organizational sustainability lies in its overall effect of providing the firm with a competitive edge over its rivals (Nawaz & Koc, 2019). Organizations need to be efficient in their various operations to become sustainable. A functional organization structure allows employees to focus on one specific functional area. Thus, the organization’s workforce can attain considerable efficiencies in terms of process flows and management methods. This situation allows for the firm to improve on service delivery.
Similarly, the firm’s workforce can be a source of competitive advantage over other rival firms in the market. It is viable to have a department consisting of experts in a particular field. Such allows for these employees to share expertise, hence making the organization more sustainable.
Chain of command
In a functional organization structure, there exists a transparent chain of command (Awa, 2016). Thus, each employee in the organization knows what decisions they can make, and who to report to in case of anything in the firm. This situation makes it possible for functional managers to control and monitor employee behaviors in the firm. In this way, the workforce can work towards achieving the firm’s objective due to close monitoring. Such makes the firm more sustainable.
Centralized structure
The functional organizational structure is primarily centralized in nature, which allows for departmental managers to report directly report to the executive. The top upper-level executives can then draft policies and ensure the rest of the organization follows these directives (Awa, 2016). In this scenario, the company’s primary aim is to achieve sustainable outcomes that enhance profitability and brand recognition. As a centralized structure, the functional system supports a focused vision, making it possible for employees to work in the desired direction.
Level of formality
This system is more formal in that the management and all the departmental employees are well aware of how things work in the organization. The system has a hierarchical structure, where the workforce acts according to the directives and instructions made by their superiors. In this way, the firm’s employees can easily coordinate to achieve the firm’s various objectives. With more emphasis on work, employees can work hard to beat deadlines, hence increasing their sustainability.
How scientific management theory supports this structure
The scientific management theory primarily focuses on the concept of work planning to attain specialization and standardization (Turan, 2015). Such is critical in achieving efficiency in any particular workplace setting. One notable aspect of the theory is the emphasis on the division of labor and responsibility between the employees and management. In a functional organization structure, the business operations are divided into various departments. Each sector is responsible for carrying out their respective duties to promote the success of the organization.
One other significant aspect of this theory is the scientific selection and progressive development of employees. This situation involves recruiting an employee for a position that matches his skills and capabilities. Specialization makes it possible for employees to engage in work responsibilities that suit their talents. The management must study and monitor the behaviors and performance of the various employees. Such is significant in pointing out their limitations, and adopt relevant strategies to overcome such shortcomings. A functional structure makes it possible to place employees in various departments hence likely to monitor their performance and efficiency.
This theory also emphasizes the need for equal responsibility between management and the company’s workforce (Turan, 2015). Such a situation will foster mutual independence and cooperation among employees and management. The company needs to adopt a functional structure as it primarily promotes equal responsibility through the division of labor. Similarly, the strategy brings together the science of work, and scientifically recruited workers, which is critical for the firm’s growth.
Impact of structure on effectiveness
The goal attainment approach specifies that the effectiveness of any particular organization is measured by looking at whether the firm has accomplished its set objectives (Nawaz & Koc, 2019). One way to measure such effectiveness is by looking at the organization’s size relative to its rivals. A company can gain a competitive advantage over its rival firms by improving the quality of its workforce. Such is possible through specialization and division of labor, a significant element in a functional organizational structure. Specialization also makes it possible for the organization to produce quality commodities critical in maximizing its sales.
Innovation is another critical element for promoting organizational effectiveness. Innovation is a fundamental aspect of enhancing an organization’s ability to react to changes and discover new opportunities. A functional corporate strategy supports innovation in that employees can perfect their skills through specialization (Awa, 2016). With such efficiency, the employees can discover new methods of production through sharing ideas and increased interaction. Such is critical in promoting the firm’s ability to achieve its various goals.
Advantages and disadvantages of using a different structure
Adopting a matrix organizational structure can have significant impacts on the firm as well. Such an arrangement allows for collaboration between different departments, hence can share new concepts and ideas. It is such ideologies that enhance innovation in the organization, therefore assisting the company in achieving its goals. Collaboration similarly brings together highly skilled employees from various departments, making it easier for the firm to capitalize on the existing resources (Nawaz & Koc, 2019). As such, the firm does not have to outsource personnel to carry out different duties within the firm. The matrix structure similarly combines both functional and project management structures. Such combination is critical in increasing efficiency and the firm’s ability to respond quickly to changes in demand.
One notable drawback of adopting a matrix organizational structure lies in its ability to slow down the decision-making process. Due to this structure’s complex nature, decisions have to pass through different managers before their executive management’s approval. This process can be lengthy, as a lot of time may be wasted in mobilizing managers to makes individual decisions. For instance, quality assurance is a critical element that can be hampered by a slow decision-making process.
References
Awa, K. I. (2016). Functional structure and operational issues: An examination of core challenges and remedies. IOSR Journal of Business and Management, 18(1), 1-4.
Nawaz, W., & Koç, M. (2019). Exploring organizational sustainability: Themes, functional areas, and best practices. Sustainability, 11(16), 4307.
Turan, H. (2015). Taylor’s Scientific Management Principles”: Contemporary Issues in Personnel Selection Period. Journal of economics, business, and management, 3(11), 1102-1105.