Tuesday, 21 January 2014

Entry 2 (IY1 Introduction to Business and Management)

Entry 2

Starting from now, I am going to talk about the structure of organisation.
 
Why is the structure of organisation important?

I can tell you three major reasons why the structure of organisation is important.

1) An organisational structure enables the organisation to change or to respond according to its environment.
2) A clear structure makes it easier to see which part of the business does what.
3) Organisational structure is particularly crucial for communication.

What is span of  control?

It is the number of employees over whom a manager or supervisor has authority.
In addition, there are two types of span.

                                                                       1) Narrow
\

                                                                         2) Wide



                                               There are many ways to structure a business.
                                                       I am going to discuss two methods.
                         
                                                              (!) Functional structure

                                 


                                                  This structure has good and weak points.
                                          
                                                                    Advantages


                           1)  Specialisation : each department focuses on its own work.
                           2)  Accountability : someone is responsible for the section.
                           3)  Clarity : know your and others' roles

                                                                  Disadvantages
 
            
                           1) Closed communication could lead to lack of focus.
                           2) Departments can become resistant to change.
                           3) Coordination may take too long.
                           4) Gap between top and bottom.

                                                               (!!) Matrix structure
                                      

                                  
                                         This structure has good and weak points as well.

                                                                      Advantages

1) Communication within the team is easier.
2) Specialists can contribute new ideas and see problems in a different way.
3) A close team can be dynamic and enthusiastic, leading to high level of motivation.
4) Project managers are directly responsible for completing a project on time and within the budget.
5) Individuals can be chosen according to the needs of the project.

                                                                   Disadvantages

1) People may have more than one boss.
2) There can be conflict between line managers and project managers over the allocation of resources.
3) If a matrix system is superimposed on an existing structure it can increase staff costs as more managers are created.
4) Can be difficult to control and monitor if teams have a lot of independence.


As for me, I experienced functional structure in an English academy. I could easily saw people doing their specific parts: driving, managing people, managing finances and teaching English. It not only represented the specialisation of their tasks but also accomplished their own works efficiently, having responsibility and clarity. However, I found some problems. For example, it was hard for me to communicate with  immediate supervisor. Moreover, it often took a lot of time to do something together becasue they were accustomed to doing their sections.


To conclude, I mentioned the reason why the structre of organisation is important, the span of control and the pros and cons of two major structures: functional and matrix structures. What is more, I dealt with functional structure with my real experience. Therefore, structures of organisations should be placed in the right place, considering their advantages and disadvantages in all aspects.   

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