Research and describe how the scholarly literature describes the functional and

Question

Research and describe how the scholarly literature describes the functional and divisional approaches to structure.

Select an organizational structure (see exhibit 10.3 in Management 12th Edition by Daft, R) and explain how the structure is designed to work by providing an example or scenario (make certain to address the theory’s advantages and disadvantages).

Discuss how culture is reflected in the chosen theory. What types of companies might choose it? Once chosen, how might the company's culture be affected?

Explanation / Answer

Answer:

Organizational Structure –

The structure of an organization is the effective and efficient way of allocating human resources in such way that the business objectives are achieved. This structure helps for the routine work allocation, coordination and supervision of the employees by the management. The structure is basically dividing the large group of employees in small teams, and these teams are assigned specific nature of tasks for execution. This helps in utilizing the expertise of the individual teams in completing the specific nature of assigned tasks.

These are various type of organization structure are in use based on the need of the organization.

Following are the characteristics of below organizations based on the scholarly structures.

Functional Structure –The functional structure is such that employees are grouped based on their skill sets. The characteristic of functional structure is that one set of skills are in one group/team of employees, these skill sets are common in nature and helps to achieve the specific objective goal. We call it as functional structure or departmental structure. Functions like Manufacturing, Quality, Material, Engineering, Sale, Marketing, Finance.

Divisional Structure – The divisional structure means dividing the employees on product line basis. This helps to select the people skill based on their skill with respect to the product lines. The characteristic of this structure is that the product based skill sets are available in the assigned team/group, so that they can meet the skill set requirement for the product line. Example –Let the company has three products – Truck, Car and Tractors. So they want to make the separate structure for Truck division, separate structure for Car division and separate structure for tractor division. All the three products will have separate structures, are known as divisional structure. And the individual division will be having functional structure.

Organizational structure – Functional structure

This structure is designed to work by the human resources in the functional structure, such that one set skills of employees are group in one function and headed by the functional leader/manager.

Example : The Service Function in ABC company:

The service function is structured in the company such that the team is responsible for providing the service support to the customer of the organization upon any product issues reported in the warranty and non-warranty period.

The function is made up of a functional manager with executives in the team supported by engineers, technician and operators. Thus all these people are skilled in service process and service work needed for customer care and customer service.

Advantage is that the function is capable in delivering the services to customers and they are competent enough for managing the customer complaints. Disadvantage is that this group is not able to handle other source of work needed for the organization and they can develop other skills needed to support the organization.

Organizational Culture – Organization culture is an essential factor of the organization and it reflects the behavior of the people in organization. In a good culture and strong relation band between the employees create a sense of positive energy. The values, norms, and artifacts of the organization are excellent. The human values of treatment among employees are remarkable. All the people are treating each other with dignity and respect. The norms of behavior among the manager and employees are great and they have a great feeling for each others.

Culture is reflected in the structure and the developed culture in the organization is of the nature of functional working culture, which is developed due to functional structure.

The companies which are required the work to be categorized is the companies which need the work to be carried out in functional structure, like they want to do routine work for the company.

The culture of the organization is affected with the structure of the organization because the behavior and interaction of people is primarily based on the working structure of the company.

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