Organsation Structure Essay

Submitted By cappuccino0013
Words: 2635
Pages: 11

Recently, become an efficient and effective organisation is a hot issue in global environment. There are lot of theory or discussion about the company how to structure their organisation, structure is significant to each organisation, as the suitable organisation would be profitable and cost-efficient, if the organisational structure not useful to the company, it is not doubt that those companies without a suitable structure, that organisation cannot be survived in the future. Consequently, how to choose a good or a appropriate organisation structure is a important aspect to their manager. This paper will discuss different type of the organisation structure which includes functional structure and team structure, tall and flat structure and centralisation and decentralisation structure.

Type of structure
Functional structure and Team structure
DuBrin (2012, p263) defined the organisation is the arrangement of people and task to accomplish organisational goals. Here, it is obvious that the organisation make up people and task. First of all, according to different task and skill of the member, the organisation can be divided into three major type-functional, divisional and matrix structure (Schermerhorn, 2010 658). In his viewpoint, functional structure group people with similar skill and perform similar task into a formal job unit. On the other hand, divisional structure groups people that work on the same product or process, are located in the same area or geographical region. Matrix structure combines the functional and divisional structure (Kris, 2010). Secondly, Robbins and Coulter (2007) present a theory called departmentalisation, functional departmentalisation groups jobs by functions performed. From the information provided; it can be found that can Corporation perform in divisional structure within functional departmentalisation. Can Corporation is a medium-sized manufacture produce light metal container. It manufactures three type of container in different location. One is soft drink cans container, other is paints container, and last one is aluminium foil. It is clear that this company use divisional structure as it group people work on the same product and in same area. Further, in each of its plant site, it set up several departments which include Finance, Human Resource Management and 6 support units under a centralised head office. Therefore, it is follows the principle of functional structure to establish its department.

Some dissenters argue that Can Corporation is matrix organisational structure. Under the discussion by Schermerhorn (2010), people in matrix structure is assigned to both project and functional department, they could communicate across each project and department. In this company, however, is not providing any information about the communication across each project and functional department.

On the other hand, Schermerhorn(2010) also talk about the team structure. In this structure, it convenes people with different skill and speciality to accomplish a particular task or project. As the information described, U-shape Unlimited is not a large but a small size manufacturer that produce light metal container. In this company, it has six team works, differ from Can Corporation, U-shape Unlimiteddose not build up department, but only project team consist with professional personnel such as human resource, finance, designing, costing and producing.

Advantage and Disadvantage of Functional Organisation
In a functional structure, total of the decision-making are taken place at the upper levels of manager. These make sure that top manager control completelythroughout the entire organisation. It is clear that provides a career trace for lower employees, from bottom-level positions, up to the upper decision-making positions. It is more stable and efficient for a complex and large organisations, as every member utilize similar processes (Agyapong-Kodua, Ajaefobi&Weston,