Organisations are social entities that which are made up of a group of people that work together in achieving the same goal. organisational structure is the framework that controls the hierarchy of the organisation and defines authorities and duties to its members. There is no one best way in which an organisation can be structured. Firstly, neither centralised or decentralised organisational structures were found to be better for organisations.
Organisation structure is very complex and company specific where there are a number of different variables dictate what structure is to be used where even modelling has attempted to determine the best fit. Different organisational structures tend to benefit the strategies of different organisations . Centralised or decentralised organisational structures are neither better nor worst than each other. Centralised management structure of an organisation is when decision making is kept at the top the hierarchical structure as oppose to centralised structure where responsibility is spread over a larger group.
The Essay on Poverty And Social Structure
Although the United States is one of the richest countries in the world many of it's people sleep in the streets, dig through garbage cans to find food, and carry all that they own in this world on their backs or in shopping carts. These people are known as the homeless. Recently I had the opportunity of helping, and at the same time being educated by one of the members of this unfortunate group. ...
A Canadian law firm, Borden Ladner Gervais (BLG) found that when they altered their organisation structure to a more decentralised structure, that it proved beneficial for their business. It allowed for the regional offices to have their own control of their operations while still maintaining constant communication. The firm’s national managing partner, Sean Weir, said “A top-down structure that might work for someone else was definitely not going to work for us” (Gray, J, 2003).
This law firm demonstrated how a decentralised structure was able to be better for an organisation than a centralised structure. Leiponen and Helfat (2011) also found that decentralised organisational structures were best suited to research and development as it minimised coordination costs and that division managers were better rewarded for dealing with their won markets. However, the centralised organisational structure also offer benefits as it allows senior management greater control over the organisation which means better decisions that also share the joint interests of the whole organisation.
For these reasons there is not better or worse to structure an organisation in a centralised or decentralised manner. Organisation structure is very company specific and complex. It depends on the organisation’s industry, location, size, ownership type and many other things. There has been efforts to produce empirical models to determine the perfect organisation structure for any organisation. The Cubic Contingency Model (CCM) is one such example that has 27 structure fits that can be applied to organisations.
The CCM used principles that had been applied in other models including the Stopford nd Wells Model and the Donaldson Model to get a more complete representation which could be applied to a larger range of organisation’s structures (Qiu and Donaldson, 2010).
In this way modelling is constantly being done to improve the ability to determine good ways of structuring individual organisations and in turn improve how the organisation can function as a whole. The motivation to have these models is reason that all organisations have a different best structure. Different organisation structures tend to benefit the strategies of different companies.
The Business plan on Organisation Structure Training
Structure Training ON BINANI CEMENT By : Mayank Agarwal MBA B 1220125 ACKNOWLEDGEMENT On completing this project it is my pleasure to thank and extend my heartfelt gratitude to the following people who made the completion of this project possible: My mentor Mr. Sudhindra. S for his vital encouragement and support. Mr. Magan Agarwal (AVP. ), Binani Cement Pvt Ltd. , for his invaluable contribution ...
Strategies of different organisations differ greatly and the relationship between strategy and structure has been studied and suggests that organisational design is dependent on strategy. Pertusa-Ortega, MolinaAzorin, Claver-Cortes (2010) found that “organizational structure does not exert a direct influence on performance” but it did have indirect influence. Dual management is an organisational structure where they are essentially headed by two people. In this style of management one of the leaders would play a managerial role while the other a more creative role.
This Dual management structure would be more consistent with a non-for-profit organisation (Landry,2011).
In this way the broad types of different structures of organisations are used by wide range of different organisations in different industry sectors. Organisations are very complex and because of this are unique. Organisations always have a changing external environment which forces internal changes. Through the examples that have been explained previously it can be seen that no one structure is able to bring out the best performance of any organisation.
Neither the centralised nor decentralised organisational structures were found were found to work for all organisations. This was because organisation structure is complex and company specific. Modelling has been found to be improving its ability to find a best fit structure however it will still be different for all organisations. Different organisational structures tend to benefit the strategies of different organisations and there is no one best way in which an organisation can be structured.
