Company Structure

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Structure is the pattern of relationships among positions in the organization and among members of the organization. Company A and company B are both the business organization in term of manufactures. They manufactured different kind of product. Shirts and blouses in a limited range of tradition styles are Company A’s products and B is a specialist producer of Health, Fitness and Beauty products. Therefore, the structure is not the same between them. Company A’s operating in functional structure because it only makes shirts and blouses, and it needs to keep a high standard and a uniform production. In addition, the functional structure keep each department centralizes on its well-defined roles and operating procedures. The functional structure best suits this company because it needs its employees adept and efficient at making blouses and shirts, which should results in higher productivity and higher profit margin. Jack Pitts, who started the company in 1977, has consistently developed the company’s organizational culture, which is a combination of values and beliefs of its employees. He faithfully followed the principles of Scientific Management. The worker was paid on a “basic + bonus” system. In addition, Jack Pitts is a strong character, who runs his company in functional structure to maximize productivity and efficiency. As a Managing Director, Author Pitts wants to change the organizational culture of the company by trying to introduce “softer” management style than that of his father’s.

Span of control which “refers to the number of subordinates immediately reporting to a superior official”. Company A has 580 employees with a managing director, while company B has more than 1,000 employees. The span of control is wider in company A than company B. The reason is that the superior in company A is in charge of fewer subordinates than in company B. The division of work in company A is divided by function: production, marketing and sales, finance,...
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