Organization Diagram

Organizational structure is one of the important factors which determines the company’s hierarchical structure. There are four types of organizational structure which includes functional top-down, divisional structure, matrix organizational chart and flat organization chart. In this report the functional top-down chart has been taken. In case of the functional top-down chart it is observed that C-suite personnel are at the pinnacle of the hierarchical structure. These are followed by the senior managers, and then it comes middle managers and then comes all the executives. In the C-suite posts includes some of the important personnel like Chief Executive Officer, Chief Financial officer and Chief Operational Officer. These C-suite personnel are reported by senior manager from different departments like IT department, finance department and also the sales department. These senior managers are reported by the executives and different heads of the management.

If the company went in any kind of project then the decision making process are being decided by the C-suite personnel of the company which involves CEO, CFO and COO of the company. Then the project are being divided into fragmented part and assigned to respective departments (Winnubst, 2017). The senior managers of different departments further assign the work into their respective managers and the managers of the different departments distribute it to their teams.

There are two types of system of organization. This includes the mechanistic system and organic system. In case of mechanistic system the organization chart which is more bureaucratic in nature and are more hierarchical in nature. The function top down chart is the hierarchical in nature and also promotes the idea of bureaucracy which includes the control lead by the main managers of the company.

Informal Structure of Organization

Informal organizational structure is the type of structure which are more focused on the personal relations and depends on the interactions of people in organizations. Unlike organizational structure this informal group is created naturally. These formations of the group are mostly taken outside the formal organizational structure. In case of the informal organizational structure is being crosses it horizontally and vertically. In informal organizational structure the employees are often have very powerful communication system which helps to resolve any kind of issues in a very quick moment. The main advantage of the informal organizational structure is that it can change easily and a very adaptable to the changing situations (Winnubst, 2017). If there any change in the organization in terms of the shift then it can easily be changed easily with the help of the informal group as it is more liquid and fluid in nature. The change which is done through informal organizational structure are more efficient and more acceptable. The only disadvantage which the informal organizational structure holds that it is sometimes becomes reorganized and hence a serious issue may rise which may lead to demise of the company.

Differentiation and Integration in Companies

In the big organization differentiation takes place. Differentiation is a kind of situation where different departments, branches ort different offices follow their own culture. The differentiation of the company also includes different approach which leads to conducting a work in their unique way (Winnubst, 2017). The differentiation also occurs in terms of the production line of the company. The different production line with the finance, accounting and marketing follows different approach for conducting the job. These all are done under the same organization. The differentiation may lead to the rise in the using different technology and also using different types of model rather than using the same model which are common in the organization.

Integration is also one of the important factor which leads to use of the same type of model in different departments of the organization. The large companies which are integrated with high factors lead to the strong connections between the departments and also same found in the case of the product lines. Integration is used mainly in the top down chart organization. These are also seen as the increase in the productivity and unity of the company which helps the company to move forward. These are also directed with the financial structure of the organization.

Advantages and Disadvantages of Differentiation and integration of Organization

There are many advantages of the differentiation strategy of the organization of the company. The advantages of the differentiation of the organization are as follows:

The multinational companies are working in different market around the world. So differentiation helps the company to cop up with that market and hence it becomes fruitful for the company.

The organization can successfully solve the problem of the client easily if the organization is using the differentiation system. This will help to satisfy the customer more and able to increase the brand value for the customer.

The differentiation system also helps to keep the unity in the specific branch of the company. These help to increase the productivity of the employees of the company as they have some suitable working environment for the employees.

The disadvantages of the differentiation system of the company are as follows:

The main issue arises when there is an exchange of employees happens. It takes considerable period of time for adopting with the working environment.

This also excludes some buyers when the organization follows the differentiation system.

It causes some of the biggest problem for the management of the company as it cause some of the problem in the decision making (Zaridis & Mousiolis, 2014).

The advantages of the integration are as follows:

The integration has provided greater advantage over competitors as it helps the company to invest and also to develop the products during their offering.

The integration helps the management of the company to have better control over the company.

 The cost for transactions is said to be much lower as the branches of the company has same kind of rules and regulations.

The disadvantages of integration are as follows:

 When the company is having vertical merger then the company has to face some serious problem.

It also decreases the flexibility of the company.

It also creates some of the barriers for the market intervention.

Suggestion for Improvement

The hierarchical structure needs to improve in regards to the burecarcy of the company. The structure needs to be more flexible which will help to adapt the change in the society.

References

Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive advantage: the importance of organizational structure and value chain position. Research-Technology Management, 58(5), 53-60.

Neubert, M. J., Hunter, E. M., & Tolentino, R. C. (2016). A servant leader and their stakeholders: When does organizational structure enhance a leader’s influence?. The Leadership Quarterly, 27(6), 896-910.

Van der Voet, J. (2014). The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure. European Management Journal, 32(3), 373-382.

Winnubst, J. (2017). Organizational structure, social support, and burnout. In Professional burnout (pp. 151-162). Routledge.

Zaridis, A. D., & Mousiolis, D. T. (2014). Entrepreneurship and SME’s organizational structure. Elements of a successful business. Procedia-Social and Behavioral Sciences, 148, 463-467.