Organizational Structure

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Task 01
1) Discuss different organization structures and identify the type of organizational structure that do you thinks suitable for your selected organization?

Organizational structure
• Organizational structure is the way in witch an organization’s activities (job tasks) are divided, organized and coordinated. • Organizational structure is the way in which and work, authority resources of an organization have been divided among members.

Types of organizational structure
▪ Entrepreneurial structure
▪ Bureaucratic structure
▪ Matrix structure

Entrepreneurial structure

Most organizations start life as an entrepreneurial structure in that they are brought into existence to extend the capability and capacity of an individual, who has discovered a way of meeting potential customer – or client need, but cannot achieve results without assistance. The two essential components of any dictionary definition of the word ‘entrepreneur’ are risk and initiative. The fact of having had the initiative and taken the risk gives the entrepreneur such dominance in the evolving organizations that everything depends on him and most activities of other members are either replicating or mirroring what the entrepreneur is doing. The initiative shown usually includes a powerful ingredient of expertise or specialized knowledge that nobody else can supply, and which is the secret of success.

Most people are employed in organizations that do not depend absolutely on the continuing, irreplaceable contribution of a single entrepreneur. The large oil companies most public sector undertakings like the National Health Service or the Civil service, High Street banks, schools, colleges, airline companies, insurance companies have a quite different type of drive to their activities. Other types of organization appear to need, however, the strong centralization of the entrepreneurial form to be effective. Where there is the need to move fast and take major decisions requiring flair and skilled judgement rather than a measured weighing of alternatives, then the entrepreneurial form is maintained.

The entrepreneurial form is attractive to many managers because of its emphasis on individual power and risky competition.

This organization works on precedent, on anticipating the wishes and decisions of the central power sources. There are few rules and procedures, little bureaucracy. Control is exercised by the centre, largely through the selection of key individuals, by occasional forays from the centre or summonses to the centre. It is a political organization in that decisions are taken largely on the outcome of a balance of influence rather than on procedural or purely logical grounds.

Bureaucratic structure

Bureaucracy is the most common form of organization and has been used, as we saw in the second chapter, in various forms for most of human history. It is only recently that the word has taken on the unattractive overtones that turn “bureaucrat” into a term of abuse.

The principal of bureaucratic organization is that jobs are grouped according to some common feature and then ranked in a conventional hierarchy of responsibility to distribute power between organization members. The most common grouping is function, with a marketing hierarchy, a production hierarchy and so on. An alternative is the geographical grouping, whereby there is a factory hierarchy and another for the London office and a third for the warehousing and distribution centre. In bureaucracy the employee focuses on his role in the organization rather than on the relative power of individuals.

Bureaucratic structures are characterized by an advanced degree of specialization between jobs and departments, by a reliance on formal procedures and paperwork, and by extended managerial hierarchies with clearly marked status distinctions....
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