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Task 1c.

Reading
A. Functional Structure
So this structure is using by many large organizations include production, finance and so on.
I will tell you about first time this functional structure exist. Before the first world war, French
industrialist Henry Fayol organized his coal-mining business according this function to carry. He
is generally credited with inventing functional organization. This structure is efficient but there
are 2 standards. First, people are usually more concerned with the success of their department
than that of the company, so there are permanent battles in between. Secondly, separating
functions is unlikely to encourage innovation. (based on: paragraph 3)
Functional organization also operates at higher level of management. The whole work in the
organization is divided in various departments. Similar type of work and transactions are put in
one department under the control of a departmental manager or head. Various departments are
also known as functional areas of management viz., Purchases, Sales, Finance, Production, and
Personnel etc. The respective managers of these departments will be responsible for carrying out
various activities of their departments in the organization. For example, marketing manager will
be responsible for carrying out marketing activities and personnel manager will be responsible
for looking after the personnel matters in all the departments of the organization. The underlying
idea of functional organization at the top level of management is that a subordinate anywhere in
the organization will be controlled and commanded directly by number of managers operating in
different departments. (based on: internet)
So, the functional structure in general is using by large organizations and be responsible by
the superior. (based on: my conclusion)

B. Matrix Structure
An inherent problem of hierarchies is that people at lower levels are unable to make
important decisions, but have to pass on responsibility to their boss. One solution to this matrix
management in which people report to more than one superior. Thomas Peters and Robert
Waterman, in their well-known book In Search of Excellence, insist on the necessity of pushing
authority and autonomy down the line, but they argue that one element-probably the product-
must have priority; four dimensional matrices are too far complex. (based on: paragraph 7)
A hybrid organizational structure, the matrix structure is a blend of the functional
organizational structure and the projectized organizational structure. In the matrix structure,
employees may report to two or more bosses depending on the situation or project. For example,
under normal functional circumstances, an engineer at a large engineering firm could work for
one boss, but a new project may arise where that engineer’s expertise is needed. For the duration
of that project, the employee would also report to that project’s manager, as well as his or her
boss for all other daily tasks. The matrix structure is challenging because it can be tough
reporting to multiple bosses and knowing what to communicate to them. That’s why it’s very
important for the employees to know their roles, responsibilities and work priorities.
Advantages of this structure is that employees can share their knowledge across the different
functional divisions, allowing for better communication and understanding of each function’s
role. And by working across functions, employees can broaden their skills and knowledge,
leading to professional growth within the company. On the other hand, reporting to multiple
managers may add confusion and conflict between managers over what should be reported. And
if priorities are not clearly defined, employees, too, may get confused about their roles. (based
on: internet)
My conclusion about matrix structure is that employees on the lower level can not make a
decision on the company.

C. Line Structure
Most organizations have a hierarchical or pyramidal structure, with one person or a group of
people at the top, and an increasing number of people below them each successive level. There is
a clear line or chain of command running down the pyramid. All the people in the organization
know what decisions they are able to make who their superior is and who their subordinates are.
(based on: paragraph 1)
Line organization is the simplest and the oldest type of organization. It is also known as
scalar organization or military type of organization. In the words of J.M. Lundy, “It is
characterized by direct lines of authority flowing from the top to the bottom of the organizational
hierarchy and lines of responsibility flowing in an opposite but equally direct manner, ”An
important characteristic of such type of organization is superior-subordinate relationship.
Superior delegates authority to another subordinate and so on, forming a line from the very top to
the bottom of the organization structure. The line of authority so established is referred as “line
authority.” Under this type of organization authority flows downwards, responsibility moves
upwards in a straight line. Scalar principle and unity of command are strictly followed in line
organization. This type of organization resembles with the army administration or military type
of organization. As in case of military, commander-in-chief holds the top most position and has
the entire control over the army of the country, which in turn is developed into main area
commands under major-generals. Each area has brigade under brigadier-generals, each brigade is
fabricated into regiments under its colonels, each regiment into battalions under majors, each
battalion into companies under captains, each company sub-divided under its lieutenants and so
on drawn to corporal with his squad. (based on: internet)
So, line structure is simplest and oldest type. And this structure is with one person or a
group of people at the top, and an increasing number of people below them each successive
level. (based on: my conclusion)

D. Staff Structure
Some people in an organization have colleagues who help them. This is known as staff
position : its holder has no line authority and it is not integrated into the chain of command.
(based on: paragraph 2)
The way a business organizes its employees often depends on its size, objectives and
resources. However, one of the key elements to consider when creating an organizational
structure is where authority should lie within the organization and whether that aligns with
overarching business goals. One of the commonly used traditional hierarchical organizational
structures is referred to as line and staff. It is a vertical hierarchy where
some horizontal support is provided to key positions within the organization. It’s used in medium
and large organizations. (based on: internet)
In my opinion, this structure is used by medium and large organizations.

Task 1f. Describing Company Structure


In the highest position is The Board of Directors with a Chairman (GB) or President
(US). He command The Managing Director (GB) or Chief Executive Officer (US). And the GB
or US have to handle 5 departments in between production, marketing, finance,
research&development and also personnel.
First is Production department. It doesn’t have the subordinates. It handles about the
goods or services. Second one is Marketing department. They have 3 subordinates include
Market Research, Sales and Advertising&Promotions. This department focuses on how to sell
the goods or services to citizens. Because of that, Sales also have 2 department between Northern
and Southern region. Thirdly is Finance department. They have 2 subordinates include
Financial Management and Accounting. This department focusly about the financial statements
like General and Special Journal,Work Sheet, Income Statements and so on. This department
could make a statement if the companies/organizations are loss or have a profit. And the last two
is Research & Developments and Personnel. They both don’t have a subordinate. But Research
& Developments department focus on how to develop the employees and Personnel department
focus on how the employees feel on the company like are they feel comfort or vice versa.

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