The success of any business is dependent on the type of organization structure it adopts. Businesses employing less than fifteen employees may not be stressed with which type of organizational structure to adopt. However, medium or larger business that employ more than twenty people must decide on the type of organizational structure to adopt because such a structure is likely to benefit the owners, employees, managers, lenders as well as investors. This report is therefore concerned with highlighting relevant organizational structure for small, medium, large business types. For every business type, an organizational chart has been used to reflect on the type of organizational structure. The report also brings to light the most appropriate support required by managers when changing from traditional divisional structure to a more modern flat, function-based structure.
For small and medium sized businesses, functional organization structure is appropriate. Basically, the employees of the business are divided based on tasks performed by each. The business is structured around the job functions. It is suitable to these types of business because such businesses do not have wider production requirements. Basically, each of the organization’s portions is grouped as per its purpose. It is excellent for small businesses and medium sized business because each department of the business can effectively rely on the knowledge and talent of workers and support itself (Writing 2012). Also, the structure enables small businesses to produce standardized services and products often at low cost but at larger volume. Basically, the specialization and coordination of tasks remain centralized. This makes production of services and products predictable and efficient which makes it relevant for small and medium businesses. In addition, it is suitable for small and medium businesses because it guarantees efficiency.
The structure enables small and medium sized businesses to have their activities integrated vertically simply for the products to be distributed and sold at lower cost and quickly.
For large businesses or companies, divisional structure is very appropriate. Large businesses usually operate in wider geographical areas or have diverse products in different market areas. Also known as the product structure, it groups every function of the organization into a division. This structure is appropriate for large businesses because it facilitates the meeting of customer’s needs in a more specific and rapid manner. Large businesses have branches in different geographical locations. Every region stands alone. For each region to effectively supply services and products to the customers, the employees must be divided as per the products they are involved in or as per where the branch of the business is located. It is appropriate for large businesses because every division needs to have, for instance, sales staff, management staff and accounting staff and division head that briefs central office (Writing 2012).
The divisional structure is also appropriate to larger businesses because it encourages accountability. Organizing the structure of activities along the product lines offer clears correlation between profit and expenses of a particular division. This allows the formulation of business objectives objectively (Writing 2012). Eventually, this clear coordination leads to superb departmental coordination. Lastly, divisional structure is also advantageous due to its development of broader skills.
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The most appropriate support required by managers when changing from traditional divisional structure to a more modern flat, function-based structure is up-to-date technology and additional capital (Ferguson 2010). With up-to-date technologies, businesses are in a position to operate efficiently at reduced costs. Therefore, managers need updated technology when changing from traditional divisional structure to a more modern flat, function-based structure. In essence, valid technology assists workers complete the tasks at faster rate (Ferguson 2010). An organizational structure must be blended with better technology so that the organizational success is attained. Similarly, the company needs a strategy. Regardless of which method being used in production, strategy must be included which will basically assist in attaining the company goals. Lastly, communication system must be put in place. Current communication systems should be put in place so that there is flow of information from the top management to the company’s subordinates.
Interpersonal communications is a very important factor in the MA role since it helps in pursuing personal goals. Basically, it is the interpersonal communication that we often use in while pursuing our personal goals. Such goals may include self presentation goals, relational goals and instrumental goals. Thus, for achievement of such goals, interpersonal communication is very vital. Also, information management is important factor in the MA role in that it facilitates coordination. Colleagues are able to share freely their work with each other simply to avoid work repeats. Also, it helps in recognizing the capabilities of the staff, their expertise, and their knowledge and is an effective way in increasing job satisfaction and performance. Basically, it offers an efficient working environment. Lastly, it is important because it helps identify my knowledge in a systematic way besides identifying the gaps that exist in my collective knowledge.
With the understanding or the latest developments in ICT, the likely future requirements for MA’s in each of the 3 businesses are appropriate technology, finance and relevant internal ICT expertise (Harindranath, Dyerson, and Barnes). Day to day challenges such as dependence on external consultants and vendors and the unreliability of systems, potentially owing to technological obsolescence and technical complexity can only be solved with appropriate technology and expertise.
The skills required by the MA when using this technology include advanced knowledge in concepts of network design, basic understanding of server/client system concepts, and skills in project management. The MA also requires the skills that relate to the configuration and installation of the various computer equipments. Also, they should have skills in evaluating the trends in technology.
Ferguson, G. Factors Determining Organizational Structure. 2010. Web. 16 June, 2012.
Harindranath, G., Dyerson, R. and Barnes, D. ICT in Small Firms: Factors Affecting The Adoption And Use Of ICT In Southeast England SMEs. Web. 16 June, 2012.
Writing, A. Different Types of Organizational Structure. 2012. Web. 16 June, 2012.