Organizational Structure And Functional Structure

Within any business there are the organizational functions that can create the type of structure an organization will have. A business's functions are the things it does. Production, sales, and marketing are a few examples Chick-fil-A has within the company. The organizational structure defines the relationship and interactions between the different parts of the company, and identifies how the chain of command runs through the different levels. When money is earned at a fast pace, it opens doors for the company to expand. As the company grows, they begin to hire more employees and they offer new products.

Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. According to USA their structure states in order to provide clear alignment and focus for the planning process of USAA’s organizational structure, a planning team was assembled with strategic-thought leaders to author a strategic market outlook.

Functional structure is set up so that each portion of the organization is grouped according to its purpose. In this type of organization, for example, there may b a marketing department, a sales department and a production department. The functional structure works very well for small businesses in which each department can rely on the talent and knowledge of its workers and support itself. However, one of the drawbacks to a functional structure is that the coordination and communication between departments can be restricted by the organizational boundaries of having the various departments working separately.

It also is an industry that indicates national markets that organization complete. Corporate also provides the frame work with divisional managers create there business-level plans. A business-level plan has details that have long-term goals that will allow the division to meet corporate goals, and the division 's business-level strategy and structure. Many organizations have a business- level strategy that states the methods of a business or division. The use this strategy to compete against there rivals in the industry that they are in. Their is also a functional level this is the unit or department were people have the same skill or use the same resources to perform their job. The business-level plan provides the frame work for which functional mangers devise there plan. A functional plan states the goals that functional managers propose to pursue to help the division attain its business level goals mean that there is a goal set by corporate all the way down for everyone to meet. So that includes a functional-level strategy. Sets forth the actions managers plan to take the level of their department and grow. Functional level also consist of manufacturing, marketing, accounting, and R& D. Which allows the organization to reach its goal. One thing you should remember is that functional goals and strategies should be consistent with divisional

Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.

According to Reframing Organizations the benefits of a formal structure helps a company to not waste time and money especially on training products in an effort to solve problems that deal with social architecture instead of people. Structure, basically a blueprint for internal management/ employees and external constituencies like clients and competitors to follow. It has been said that structural form enhances and constrains what an organization can accomplish.

The functional structure provides employees, as well as their appropriate departments, with a clear objective and purpose for their work. As an example, employees within a marketing department know that their job is marketing and, as a result, those employees can focus on improving their marketing work and even specialize in a specific area of marketing. On the other hand, functional structure can create divisions between departments if a conflict develops between departments.

The structure of the company also has an influence on the organization. Organizing the company by department allows the employees to build strong teams. It also allows the teams to support each other’s daily functions. The structure of the organization also effects number of personnel hired into the company. The structure also effects departmental and organizational hierarchy. The departmental organization within the company is also important as it helps to determine departmental collaboration as well as the role of each person in the department (www.smallbusiness.chron.com 2013).

All in all, the cross-functional structure allows employees to create the set of functions they need in order to scan and monitor the competitive environment and obtain information about the way it is changing. With the right set of functions in place, Morgan Stanley’s managers are then in a good position to develop a strategy that allows the organization to respond to its changing situation quickly. Employees in the first line work level would communicate more with the customers. Under the cross-functional structure, the group can decide every aspect of a business. For example, the group formed to deal with real estate investment can make decision to set the price by themselves instead of the Morgan Stanley Marketing department. It will let the service firm keep itself closer to the market and customers.

In functional organizational structure, employees of the health agency operate on defined roles and obligations towards the realization of the set goals, vision, and mission of the hospital. Specialization characterizes the organizational structure, as employees perform roles in which they are specialized. This leads to the enhanced level of services delivered to clients by the hospital as the volume of production is increased. In health agency, high degree of specialization is significant, as patients require standardized products and ways of operation. Functional structure ensures that interests of the clients are met with the necessary quality (Daft 2010).

A business’ organizational structure is critical to the business and the employees. An organizational structure is “the manner in which an organization arranges (or rearranges) itself” (Fontaine, 2007, p. 6). At Kudler Fine Foods (KFF) the organizational structure that they operate under is a functional structure. A functional organizational structure is a structure where the position and function of employees are clearly specified. The business is divided into separate departments with specific tasks (Pearce & Robinson, 2009).

The functional organisational structure is also present at Verizon Company. This means that functions of the company like coordination, task allocation and supervision are group together, and employees placed where they are suited best. It is clear

Manager’s of an organization has to use structure to help the company run efficiently. “The five types of organizational structures are functional, divisional, matrix, team-based, and virtual network” (Draft, 2013, p.316). Functional structure in an organization that is developed by grouping departments by the skills, level of knowledge, activities done daily, and the resource used. “This structure places specific departments from the bottom to the top” (Draft, 2013, p.318). For example, specific departments such as: human resources, accounting, engineering, and manufacturing are placed at the top, while there are mostly seen at the bottom in other organizations. While common functions such as; people, facilities, and other resources are combined together as a single department instead of being divided into multiple departments.

Functional structures are proved to operate well in stable environments where business strategies are less inclined to changes or dynamism, the amount of bureaucracy makes it tough for organizations to respond to changes in the market quickly.

Organizational structure is a formal relationship between management and the employees. It is a way to motivate the employees and get them to working. It is also away to get employees to follow the company goals, and work together as a team. To make an organization work they need to have an organized structure to be able to run the company. The mission