Group Assignment 20%

1. Discussion questions

I. What is the definition of organization structure? Does organization structure appear on

the organization chart? Explain
An organizational structure is a system that outlines how certain activities are
directed in order to achieve the goals of an organization. These activities can
include rules, roles, and responsibilities. The organizational structure also determines
how information flows between levels within the company.
Organizational structure is the method by which work flows through an organization. It allows
groups to work together within their individual functions to manage tasks.
An organization is a group of people who work together, like a neighborhood association, a
charity, a union, or a corporation. You can use the word organization to refer to group or
business, or to the act of forming or establishing something.
 yes
 An organizational chart graphically represents an organization's structure, highlighting
the different jobs, departments, and responsibilities that connect the company's employees
to each other and to the management team.

II. When is a functional structure preferable to a divisional structure?

 a functional structure helps smaller businesses or those with singular products or
services. Larger companies with a variety of brands, products or services often benefit
from divisional structures that allow you to customize each region, division or sector
based on the offering it provides.
 Three ways
i. It is preferred when environmental uncertainty is low to moderate and
ii. when the dominant competitive issue is technical specialization and
efficiency.
III. Large corporations tend to use hybrid structures. Why?
 Most large corporations tend to use a hybrid structure that combines
characteristics of various approaches modified to the corporation's needs.
Typically a company may start off utilizing a particular structure; however, as
time goes on and the company grows different structures are needed for different
tasks. Corporations take advantage of the various strengths of geographic,
divisional, horizontal, functional, and network structures, as they appeal to their
needs.
  The major advantage of a hybrid organizational structure is high flexibility. It
allows the organization to optimize the value of employees by engaging them
with multiple projects. Organizations with hybrid structures rarely feel the
workforce scarcity because they can quickly transfer suitable candidates from one
project to another. Hybrid structure helps employees learn new processes and
improve functional knowledge within a short period. Employees who work under
hybrid structures tend to progress quickly in their professional careers.
 A hybrid structure increases employee loyalty. Employees feel that their skill sets
are valued, so they stay with the organization for a longer period. The hybrid
structure increases productivity and efficiency by making employees feel more
invested in their positions. It also creates a shared vision and facilitates better
coordination between the projects or teams.

IV. What types of organizational activities do you think are most likely to be outsourced?
What types are least likely?
2. Organizational structure

To o better understand the importance of organization structure in your life, do the following
assignment.
Select one of the following situations to organize:

• A copy and print shop

• A travel agency
• A hotel
• A bakery

Background
Organization is a way of gaining some power against an unreliable environment. The
environment provides the organization with inputs, which include raw materials, human
resources, and financial resources. There is a service or product to produce that involves
technology. The output goes to clients, a group that must be nurtured. The complexities of the
environment and the technology determine the complexity of the organization.
Planning Your Organization

1. Write down the mission or purpose of the organization in a few sentences.

2. What are the specific tasks to be completed to accomplish the mission?
3. Based on the specifics in question 2, develop an organization chart. Each position in the chart
will perform a specific task or is responsible for a certain outcome.
4. You are into your third year of operation, and your business has been very successful. You
want to add a second location a few miles away. What issues will you face running the business
at two locations? Draw an organization chart that includes the two business locations.
5. Five more years go by and the business has grown to five locations in two cities. How do you
keep in touch with it all? What issues of control and coordination have arisen? Draw an up-to-
date organization chart and explain your rationale for it.
6. Twenty years later you have seventy-five business locations in five states. What are the issues
and problems that have to be dealt with through organizational structure? Draw an organization
chart for this organization, indicating such factors as who is responsible for customer
satisfaction, how you will know if customer needs are met, and how information will flow within
the organization.