M2: Analyse the advantages and disadvantages of the interrelationships between organizational functions and its impact that can have upon organizational structure.
Organizational functions within an organization are Sales and Marketing, production, human resources, finance, Research & development, and Purchasing etc. Each of them work together to achieve the organizational objectives. Interrelation of these function relay on the base on dependency and also the structure of organization. Relationship of these function different in each organizational structure. Interrelation of these function have some advantages and disadvantages.
Interrelation improve employee’s skills as the get knowledge from other functions. Produced quality work as
…show more content…
To make these goals effective and efficient objectives are important. It gives an organization right direction to achieve its goal, that is why organizational objectives should be specific, measurable, achievable, realistic and time bound (SMART).
Here is an example: ABC Company introducing a new detergent to the market in their first year marketing objectives is ‘to capture 5% of the detergent market in Britain within the first year of operation’.
Organisational structure:
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure: Functional Divisional Matrix Project-based.
The relationship between different organisational functions and how they link to organisational objectives and structure.
There are different organizational functions within an
Every organization was established to meet needs or goals, for example, to provide goods or services. Organizational structures may form in many ways; these were influenced by factors such as the purpose, size of the company or the complexity of the tasks it performs, and the external environment and culture. Moreover, the products, services or the location of the organization will also determine which structure was the best. The structure chosen will govern the way in which the organization operates and could occur either positive or negative effects. Below are some types of organizational structure that usually see.
The job design and the motivation are not self-sufficient to increase the productivity and they require an organizational structure to further coordinate organizational activities. Organizational structure, through its chain of command, coordinates, motivates and monitors employees. Buchanan and Huczynski (2010) argue that the structure of the organizations serves 3 functions:
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.
Evaluate the inter-relationship between the different processes and functions of a selected organisation. Include the following for a selected business organisation: mission statement, corporate culture, aims/objectives, business functions (e.g. human resources)
The aim of the report is to observe and analyse how organisational structure, culture, management and the leadership are helping to function effectively and achieve the organisational goals. I will try to apply as many different theories as possible to support the report.
Explain how the relationship between an organisation’s structure and culture can impact on the performance of a business
Organizational structure affects performance by either inhibiting or promoting the same. This is dependent on the relationship between the various elements in the organizations. Supervision relationships in any structure influences productivity and performance. A good structure has performance management systems which are responsible for goal setting activities as well as ensuring the hierarchical flow of activities is maintained (Lawler, Hall and Oldham, 2014). For a company to achieve the desired goals and objectives there, exist
Firstly, functional departmentalisation coordinates work and employees through different units. Departmentalisation based on functions is used widely by organisations. Functional departmentalisation requires employees with the same knowledge, skills, and resources to allow them to work efficiently and promotes the development of greater expertise. For instance, departmentalisations according to functions are accounts, sales, marketing, production, operations and human resource department. This department has its advantages in where it allows work to be carried out by individuals who are qualified and skilled in the areas concerned. Besides that, it also reduces cost by decreasing work duplication and use of resources in the organisation. However,
A functional organizational structure administers a ranking with one or more than one manager(s) manage the overall operation (Barrows and Powers, 2008). Then, there are operational department and functional department. In the operational department, there are a unit that assists the business’s operation. Those operational groups are food preparation group, food and beverage services group, accommodation services group and front of house services group. On the other hand, for the functional group, there are human resource, finance, marketing, research and development, security and maintenance. Human resource department's main role is to focus on the labour issue such as providing training and management of the labour. Finance Department manages the financing of the return rate, cash flow and controlling the expenditures of the business. Marketing departments works on the advertising and promoting the business’s goods and services to the targeted audiences. Research and development department are mainly on the improvement or innovation of the overall business operation quality. Security department are on the duty of secure the safety of the business and maintenance department are focus on repairing defects and execute daily or monthly maintenance on the appliance or machinery used in the
The organizational structures and functions of any company, specified by management decisions will have an important effect upon the way that companies relate to their physical assets and monetary resources. Understanding the nature of the relationship between management structures and the two aforementioned business elements can reveal much about the way that the company is organized, its goals, and its expected market performance.
Companies are being challenged every day with factors that affect their primary management functions. Globalization, technology, innovation, diversity, and ethics are just some of the factors companies are facing that can affect functions of management. Managers are trained to identify these factors and analyze how they will affect the functions of their management. Planning, organizing, leading, and controlling are the four functions managers operate under. Managers will look for signs indicating when of these factors are affecting their management function. In the following
Organisational structure is to ensure effective communication between various parts of the company, as well as to increase co-ordination between different departments.
The organisation structure determines the manner and extent to which roles, power and responsibilities are delegated, controlled and coordinated, and how information flows between levels of
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
Describe and discuss how an organisation’s structure influences its behaviour, with particular emphasis on decision making and workforce management and control.