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Business & Marketing
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Topic:
Management Fundamentals and Organization Structure (Coursework Sample)
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Management Fundamentals are set of principles used to govern an organization. Project management is the act of planning and organizing a business enterprise so as to achieve a certain goal. It involves the use of structures, structures are designed to improve services and increase the level of output. While creating an organizational structure its important to consider time constrains, finances and quality delivery (Harrison & Lock, 2004). A successful project should meet or exceed an institutions target. Projects are temporal and done within a specified constrain. Once a project meets the desired goal, they are restructured in line with the new demands.
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Management Fundamentals and Organization Structure
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Management Fundamentals are set of principles used to govern an organization. Project management is the act of planning and organizing a business enterprise so as to achieve a certain goal. It involves the use of structures, structures are designed to improve services and increase the level of output. While creating an organizational structure its important to consider time constrains, finances and quality delivery (Harrison & Lock, 2004). A successful project should meet or exceed an institutions target. Projects are temporal and done within a specified constrain. Once a project meets the desired goal, they are restructured in line with the new demands.
A project should also focus on the risks and the possible constrains. Large organizations require more elaborate structures. Institutions have different structures depending on the objectives. A functional structure integrates institutions with similar functions within an organization. (Dismore, 2005)
A number of elements must be put into consideration while structuring an organization. One of the key elements of an organization is the Geographical area, its important to look at the distance between an organization and the departments. Managers need to report the activities of the organization to the executive; you should clearly define the mode of communication for the purposes of time and efficiency. Another element to consider is the number of employees; the structure should consider employees’ population and plan for future accommodations.
Product control is also a key element, smaller organizations stand higher chances of control over the products compared to large-scale organizations that face more challenges. Having control over products improves the quality of the product. Marketplace is another element that used is to define the structure, one may decide to market through wholesalers, manufacturers or online. Product evolution is also a factor, an organization starting with a small product should consider creating room for future expansions. The last element is the distribution authority, how products will reach out is key, one should decide whether it would be centralized or decentralized (Kerzner, 2003).
Organization structures are made for different goals. The structure mainly focuses on Control as one of the main problems that need to be dealt with, a well-structured operation will allow for easy communication. It will also specify how the employees should report their views to different heads within the organization. It will specify the number of employees in a department and the number of managers in and the entire organization. A good structure should be acceptable to all members of the organization (Harrison & Lock, 2004).
Workers are graded in different job groups according to their positions in the institution and education qualification. A worker may also be grouped in terms of departments or the functions they hold. In a department workers are grouped according to the tasks allocated. The tasks may include accounting, human resource or marketing. Within a department employees will also be grouped basing on the products in that particular department. Functional organizational bring together people with common knowledge and skills. Structures can also be formal or informal. Formal structures give the top authority the powers to make decisions on behave of the organization. In an informal setting, information and decision-making is a responsibility of each member within the organization (Witzel, 2003).
EXECUTIVE
DEPARTMENTAL
HEAD
MANAGERS
DEPARTMENTAL
HEAD
The figure above shows the chains of command in a simple formal organization structure. Each person’s tasks are clearly defined. A hierarchy defines authority, duties and information flow. The executive is in charge of decision-making; the decisions are then passed to the managers who will take the responsibility of informing the various departmental heads. The departmental heads initiate the various work activities. A departmental head is in control of all the activities in that particular department. The employees in a particular department report their grievances to the departmental heads.
Decision making in an organization can differ depending on the nature of the organization. In a decentralized organization, the departments make decisions on their own without necessarily involving the top authority. In this centralized organization, the executive is the high authority; it makes decision on behalf of the whole organization. This information is then disseminated through the structure to different departments in the organization.
The executive is made of experts. They analyze the market trends and come up with strategies that will benefit the organization. They are also control financing and inflation. Managers are professional who are fully equipped with managerial skills. They are in charge of the entire organizations smooth operation; they coordinate various departments within the organization. Employees have little control over decision-making but their views are heard through different departmental heads (Kwak, 2005).
With the new structure, operations are easier and quick to administer. Information from the executive directors can easily reach the employees through a hierarchy that is well defined. However, the biggest challenge is the lack of direct participation...
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