A company organizational struc...

A company organizational structure is a guidance to all employees by laying out the official reporting relationships representing the workflow of the company and provide clarity on specific human resources management issues, such as managerial authority and to achieve the company goals George, J. (2005). A formal outline of a companys structure makes it easier to add new positions in the company, as well, providing a flexible and ready means for growth, hence, departments can work more efficiently and have more time focusing on productive tasks. The structure refers to both the formal and informal frameworks that shape how the business is operated. However, the management must select the most suitable structure for the organization as it is not a one size fits all decision. Implementation of a formal organizational structure can also differentiate small-business operations from large-business operations. (David, 2018). This report attempts to focus on the different type of structure (functional, divisional and network structures) undertaken for each type of different organization. However, there are also elements such as work specialization, departmentalization, chain of command, span of control, centralization, decentralization and formalization which contributes to build a positive organization behavior. Functional structure is set up so that each portion of the organization is grouped according to its purpose. The functional structure is more technical orientated hence it enhances productivity level in which the organization can identify the expertise in each department. The lower level hierarchy level also gets to play a role in their responsibility, thus employees will have job satisfaction (Kalliath, 2009). Work specialization is the key structure to the organization structure. Today we use the term work specializations or division of labor, which activities in the organization are subdivided into separate jobs. For example, Google company adopted work specialization element, employees are carefully recruited, and they are job match each employee according to their knowledge. However, this hinders the rapid growth of the organization due to their stringent hiring process. The employees are strongly driven by the corporate culture. The organization also creates motivation to the employees by reward system and job enlargement to make sure that the employee is well engaged in the organization (Steven.L.M, 2005). However, the drawbacks to a functional structure is that it could lead to higher dysfunctional conflict and poor communication between departments which can delay the decision making, inflexibility. This type of structure is only suitable for small organization with one product or service as management can oversee the work process efficiently and maximize the employees performance (Julie. D, 2018). Starbucks had rearranged their organisation structure to improve on customer satisfaction (Shultz, 2008). The functional structure of Starbucks company is centralization of various departments or functions within the organization. By adopting functional structure using departmentalization element (geographic) each region has individual reporting managers which receives a closer managerial support for geographic needs and therefore a clear chain of command is apparent. A high degree of flexibility was used in individual department in adjusting strategies and policies to fit into various market conditions. This allows the employees to communicate effectively within the departments (George, 2005). Thus, there is presence of empowerment for the employees to make their own decisions and this gives them a sense of belonging to the organization (Starbucks, 2018). Today, with the new organizational structure, Starbucks had successfully achieved customer satisfaction and reduncies of employees are also eliminated and hence created a tensed working environment during the change of the structure. individual teams are being centralized to create an infrastructure with span of control globally within the region and hence capability and effectiveness are improved. Management can also focus more on the employees and functional activities can be design for each individual employee so the mission and goal of the organization will be shared across the organisation (Shultz, 2008).