Organizational Structure: Types and Importance

An organizational structure is a system set in place, by which work flows within a firm, that helps the firm achieve its goals.

Academic Questions on Org Structure

Management (MBA) question on Organizational Structure:

Question:

Write a Report to your Senior Management Team based on the following scenario:

You work for an organisation that has been established for in excess of 100 years. Your manager, who is one of the Senior Management Team, has recently joined the company and is concerned that the current structure, which has changed little in the last twenty years. She feels that the structure is outdated and needs to be revised in order to ensure that it allows the organisation to achieve its Mission and Goals through effective management. The Senior Management team are considering re-structuring the organisation. You have been asked to write a formal report which:

• Identifies and examines the key factors that need to be considered when designing the structure of organisations
• Evaluates the implications of organisational structure for the management and development of people and resources

Q) Explain any 4 types of organizational structures with an example.

Q. As the HR head of a Jubiliant Hospitalities, you have to create an Organizational Structure. Jubiliant has a pan India presence with an employee strength of 5000. They own three-star properties and cater majorly to corporate houses. Their key departments are business development, operations and Guest management teams. The company believes in empowering employee and is looking at creating an inclusive and transparent work culture. Explain the elements to be considered while finalizing the structure.

Question / Assignment: To analyze a team working in a sports facility. A real sports facility willl be selected by each participant. The HR structure will be analyzed following a strucured methodology.

Please follow the methodology explained at ‘Organizational structure’ and ‘HR Management’ notes. When analyzing Job positions and Persons, develop the analysis for only 3 cases of the facility in study. In case of not having all the information of the facility available, make hypothesis of a potential real situation.

Objective is learning to identify the organizational structure suitable for a sports facility based on its management model and to utilize a job position and persons analysis methodology.

Question:

You have recently started a new job in an organisation which is currently considering the possibility of restructuring in the near future. Your manager is aware that you are studying for your degree in Business and Management and feels that you have the knowledge to develop a presentation suitable for delivery to groups of managers across the organisation.

You have been tasked by your manager to produce a PowerPoint Presentation suitable for delivery to a panel of middle managers. You will not be required to verbally present your PowerPoint, but you should ensure that it is suitable for your manager to use to present to their team, when required.

Your PowerPoint should focus on two themes:

• Discusses the historical and theoretical basis of organisational structure
• Analyses the relationship between organisational structure and business strategy

The PowerPoint must be fully referenced using the Harvard Referencing System and a Reference List provided as the final slide of your presentation.

Focus on:

• The importance of organisational structure: links to organisational theory; Henri Fayol, Synergy, specialisation; links made to American and European approaches
• Formal organisational structures: line, line and staff, matrix, team; mechanistic versus organic; centralised versus decentralised; flat versus tall
• Informal organisational structures: difference between formal and informal structure; benefits, e.g. promote communication, provide satisfaction, provide social control; potential drawbacks, e.g. resistance to change, role conflict, lack of control over information of informal structure
• Organisational effectiveness: achievement of objectives, efficiency, sustainability, growth, competitive advantage, reputation, influence, external benchmarking

Demonstrate your knowledge and understanding of the historical development and theoretical basis relating to organisational structure. Develop a sound analysis and evaluation of the relationship between the structure of organisations and the business strategy.

Application of Theories to the Organisation Structure

• (i) Management Approaches
• (ii) American/European Based Theories
• (iii) Mechanistic vs Organic Structures
• (iv) Galbraith’s Star Structure Model
• (v) Functions of Management (PODC)
• (vi) PESTLE
• (vii) Henry Mintzberg’s 10 Managerial Roles
• (viii) Handy’s shamrock Organisations
• (ix) Mintzberg’s 5 types of Organisations
• (x) Grenier’s Growth Model
• (xi) Porter’s Generic Strategies Model
• (xii) Galbraith’s Growth Model
• (xiii) Treacy and Wiersema’s Value Discipline Model
• (xiv) Impact of IT on Organisational Flexibility

Conclusion- How effective your suggested structure linked to the theories will be successful for the organisation- link to change in PESTLE factors, change in consumer demands etc.

Q. An article published in McKinsey Quarterly June 2015 states;
“Organizational redesign involves the integration of structure, processes, and people to support the implementation of strategy……. it comprises the processes that people follow, the management of individual performance, the recruitment of talent, and the development of employees’ skills. When the organizational redesign of a company matches its strategic intentions, everyone will be primed to execute and deliver them. The company’s structure, processes, and people will all support the most important outcomes and channel the organization’s efforts into achieving them.”
https://www.mckinsey.com/business-functions/organization/our-insights/getting-organizational-redesign-right

Using the following Case Study, as a focus of your report, write a formal report which addresses the following Learning Outcomes:

• Identifies and examines the key factors that need to be considered when designing the structure of organisations
• Evaluates the implications of organisational structure for the management and development of people and resources
• Relationship between the organisation and individuals