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Organizational Structure

In: Business and Management

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Organizational Structure Analysis

MGT/230

06/30/2014

Structure Analysis

An important trait to any organization in the business world of today is the functions within the organization. Overall, an organizing function of management outlines the practice in which individuals within the organization interact and work with each other. In this paper the discussion will be focused on the pros and cons of the three major horizontal structure types; Functional, Divisional, Matrix. The Pros Commonly found in organizations are the pros of the horizontal structures. Functional Structure has its advantages because it saves the bottom line, and that is cost. Employee performance is better maintained, the line of communication is more precise and clearly elaborated. The advantage of the Divisional Organizations is that less information is required and employees receive broader training. All task responsibilities tend to be clearer with the Divisional Organization. The advantage of the Matrix Organization is that extensive communication helps others process larger amounts of information. Decision making is given to others and when its processes accordingly, it is then applied through trainings. The Disadvantages The disadvantage of the Functional Structure is the employee caring more about the revenue than the customer or the product. Managers learn through trial and error but do not inherit the skills required to operate the organization. The disadvantages of the divisional structure are the opposite of functional structure. Managers develop certain skills that would not be operational in a function structure, they become generalists. Functions do not have a headquarters they are done through divisions and the cost becomes expensive. The matrix structure faces its own disadvantages because it is faced with democracy and it leads to debates and not enough production. There is no set manager and the confusion arises when a person does not have a leader to whom they feel they can rely on.

Team B’s Employment Having worked at United Blood Services going on eleven years, I feel I have experienced the all three structures at some point during my tenure at Blood Systems. The Functional structure at my workplace exists at my workplace because of job structure and how each specializes. The divisional structure exists because there are several divisions within the organization and they all operate differently depending on the need. Matrix structure also exists in my current job because there are too many chiefs and they all want to operate the center, however, they should have the best interest of the organization and not their own. The only structure that I can say has helped my current employment is functional structure, but having employees cross trained can help the organization with operations.
Frances’ Employment The hotel industry is operated and managed through structure. In my 10 years as Regional Manager, I’ve seen different forms of structure built and fall. Learning from past mistakes and experiences today the company operates under the divisional structure. As a corporation there is an operations division, marketing division, and finance division. The corporation consists of seven hotels and three restaurants, and within each company there is structure. Each hotel and restaurant the company’s daily operations are managed through a general manager, and under those there departmental supervisors and their employees. The marketing division focuses on the different forms of promoting the company and their services, while the finance division controls each company’s finances. Through the years in the corporations, I have learned that today’s organizational structure the business has been very successful.
Bens Employment Having worked at United Blood Services going on eleven years, I feel I have experienced all three structures at some point during my tenure at Blood Systems. The Functional structure at my workplace exists at my workplace because of job structure and how each specializes. The divisional structure exists because there are several divisions within the organization, and they all operate differently depending on the need. Matrix structure also exists in my current job because there are too many chiefs and they all want to operate the center; however, they should have the best interest of the organization and not their own. The only structure that I can say has helped my current employment is functional structure, but having employees cross trained can help the organization with operations.

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