Company Structure 周韦 外国语学院

Contents Lead-in Definition of Company Structure Classification of Company Structure Exercises Summary and Questions

Questions to Think About … What is organizational structure? What kind of organizational structures can be applied in organizations? What advantages and disadvantages does each structure has?

What is Organizational Structure? Chapter 1 definition

Organizational Structure The framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated. 1.The set of formal tasks 2.Formal reporting relationships 3.Systems of ensuring effective coordination

CEO (Managing Director) Senior Executives (Functional Heads) Assistants to Senior Executives & Specialized sections Supervisors Workers Top Management Middle Management Line Management Shareholders Board of DirectorsEstablish objectives Operate business in order to accomplish objectives Coordinate activities to attain objectives Assist Senior Executives and act as their deputies Put management’s plans into effective action, allocating individual work and seeing that it is accomplished definition

How are companies organized? Chapter 2 classification

Line Structure A Functional Structure B Divisional Structure C Matrix Structure D Ways of Organizing classification

line structure classification

There is a hierarchical arrangement of authority. Each department is self contained and works independently of other departments. Lines of authority are vertical i.e. from top to bottom. There are no staff specialists. classification Line Structure

Advantages: Simple to establish and operate. Promotes prompt decision making. Easy to control as the managers. Communication is fast and easy. Disadvantages: Lack of specialisation. Managers might get overloaded with too many things to do. Failure of one manager to take proper decisions might affect the whole organisation. classification

However, line structures are suitable for: small businesses where there are few subordinates organisations where there is largely of routine nature and methods of operations are simple. Factory Manager Plant A Plant B

functional structure classification

Advantages: Is logical and reflection of functions; Follows principle of occupation specialisation; Better control as the manger in charge of each functional department is usually an specialist. Disadvantages: Reduced coordination between functions. Conflicts between different functions could be detrimental for the organisation as a whole. Difficult for general managers to coordinate different departments. classification

However, it is much suitable for large organisations where there is ample scope for specialisation. Once harmony and proper coordination among different functions is achieved, it could lead to sure success for an organisation. CEO Marketing Production Finance HRM IT R&D

classification

Advantages: Focuses on results — division managers are responsible for what happens to their products and services. Disadvantages: Duplication of activities and resources increases costs and reduces efficiency. classification

However, it is very effective for large corporations that have indeed multiple products that are poorly interrelated.

matrix structure classification Design Engineering Contract Engineering ManufacturingPurchasingAccounting Human Resources Design Group Contract Group Manufacturing Group Human Resources Group Alpha Project Omega Project Repeated as above for each project Purchasing Group Accounting Group Beta Project Gamma Project

Advantages: Is oriented towards end results. Professional identification is maintained. Pinpoints product-profit responsibility. Disadvantages: Conflict in organisation authority exists. Possibility of disunity of command exists. Requires manager effective in human relations. classification

It is used in industries with highly complex product systems for example, aerospace industry where project teams are created for specific space or weapon systems.

What structures do these companies belong to? Chapter 3 Exercises

Functional Structure

Matrix Structure

Divisional Structure

Functional Structure

Divisional Structure

What have we learned? Chapter 4 Summary & Questions

company structure KS line structure divisional structure functional structure matrix structure more…… Summary

Based on the characteristics of the four company structures we introduces today, tell how are the following companies organized and try to describe the charts. Questions

文化 星巴克 Thank You!