In a very small company with a flat structure have all staff report to the chief, on the other hand in an international corporation may have a huge number Of layers Of management but still be flatter than its revels Example: M & S and Tests ???? Advantages of flat organization: Faster decision-making as fewer number of layers help organization to respond more quickly to new opportunities or challenges Decision making also faster in this process as a fewer numbers of layer are dealt with Due to fewer layer frequent communication channels managers and staffers, resulting in better understanding of company goals for employees and managers.
Disadvantages of flat organization: Flat organizational structures may not last so long. As business grows bigger and goes to public and flat structure can’t cope with.
Less motivation among employees as there is very little scope to grow up in the business for employees Manager can be overloaded due to many issues must be sorted in the small time span which may cause problem in process of decision making Centralization The main decisions are made by senior management, where little authority is passed down the organization. Advantages: final decisions are done by senior officials with an overview of the company. make Eng sure policies are consistent throughout the company. Ensures rapid decisions may be made without consultation. Procedures such as ordering and purchasing can be standardized wrought the company, leading to economies of scale.
; in times of crisis the firm may need strong leadership by a central group of senior managers. DISADVANTAGES centralization reduces the input of the day to day experts, e. G. , the shop floor staff, into the firms decision making. It risks demoralizing branch managers who may feel mistrusted or powerless.
Decentralization Decisions are made by junior management as authority is passed down the organization, thereby accepting less uniformity in how things are down. There has been a trend in the 1 sass and sass is to decentralized to provide greater flexibility. Advantages educes the stress and burdens of senior management ; it can empower local managers encouraging them to be more innovated and motivated. It reduces the volume of day to day communication between head office and the branches, therefore giving senior managers the time to consider long term strategy. Barbiturates may have a better knowledge of local conditions affecting their areas of work.
This should allow them to make more informed well judged choices, e. G. , salesperson have detailed knowledge of customers. ; management at middle and junior levels are groomed to take over higher positions. They are given the experience of session making when carrying out delegated tasks (management could allow greater flexibility and a quicker response to development).
; changes. If problems do not have to referred to senior management decision making will be quicker.
Since decisions are quicker, they are easier to change in the light of unforeseen circumstances. Disadvantages reduction in uniformity may unsettle customers who expect every Sunburst’s to look the same or for every McDonald’s hamburger to contain just one slice of gherkin.
; head office is in a position to measure the success of every aspect of the product and sales mix, therefore its instructions may prove more profitable than local manager’s intuition. It is unlikely there will ever be complete centralization or decentralization.
Certain functions within a business will always be centralized because of their importance, e. G. , decisions about budget allocation are likely to be centralized as they affect the whole economy.
The decision to distribute profits is also taken only by a few. Some delegation is necessary in all firms because the limits to the amount Of work senior management can carry out. Even if authority is delegated to a subordinate it is usual for the manager to retain accessibility. Role culture Every organization, regardless of how many people are employed, can take advantage of the benefits that a workplace culture has to offer.
Workplace culture reinforces the way a business operates with spoken and unspoken beliefs, and values and norms shared between employees and the owner. It is evident in everything from how workers dress, what time they come in, how they spend their lunch hours and how they create solutions for internal and external issues Improve productivity: Employees who understand their workplace culture have a better grasp of heir goals and are more in tune with the needs of their managers, fellow employees and customers.
They’re invested in the company and demonstrate loyalty.
Entrepreneur, an online resource for business owners, says that employees who work for company IIS with healthy workplace cultures may be more committed and productive. Increase Marketability: Company culture is a part of the brand you create for your business, and it will make an impact on how you hire talent and what type of talent you attract. Job seekers look for company’s that fit their lifestyles, whether it’s flexible hours, financial assistance with continuing education, casual dress odes, international work opportunities or companies boasting amenities such as on-site gyms.
Form unity between employees: Employees and organization members take cues from management as they form their opinions about the culture of a workplace.
Once employees adopt the shared norms of a company, it unifies employees and management. Corporate culture starts and ends at the top with the business owner and upper management. The unity makes employees feel like they’re a part of a team. Entrepreneur online says this feeling makes employees more concerned for the success of the entire business, not their own personal accomplishments.
Task culture Task groups Offer a chance for employees to relate to each other and form bonds that can make the workplace more enjoyable and help it to function better. Solving problems together fosters a spirit of teamwork.
However, this often means that individual achievements and contributions go unrecognized and unrewarded. This can cause dissatisfaction among some task group members. Task groups typically govern themselves. A co worker may lead the group, or the group may take a more democratic approach and ask all members to lead at various times.
This can help employees feel important ND contribute to better morale and productivity.
On the other hand, an absence of management in the task force can cause members to compete for leadership positions and this can foster disagreement and conflict that slows down the task-solving process. Advantage Task groups offer the advantage of arriving at decisions that have approval of all the members, thus reducing resistance among the staff to the decision that has been made.
The danger lies in the fact that a dominant group member may cause others to conform in order to feel they belong to the group. This may not result in the best decision because the criteria for making he choice is more social than factual.
Because groups take on one task at a time, their focus on the issue at hand can help generate solutions that a busy manager might otherwise overlook. Unfortunately, this one-task focus can cause decision-making to be slow, because each decision requires the input of group members.
The primary advantage of a corporate form of business is that a corporation is a stand-alone entity, which means you are not personally liable for the assets and debts of the business. Incorporating protects your personal assets from lawsuits, debt collection and other business issues that an arise. As a business owner, you are responsible for paying taxes only on the money the corporation pays you in the form of a salary, commission or dividends–this is on your personal tax return.
The corporation is responsible for paying corporate taxes (at the corporate tax rate) on any profit the company makes. 1. 2 explain how the relationship between an organization’s structure and culture can impact on the performance of the business Culture and structure is working like a backbone in the organization. It creates a new concepts and strategies which can affect any level of planning. When it applies on any hierarchy organization.
So then implications of organizational culture and structure will be implemented to the government companies etc.
Organizational structure and culture can affect progress of organization in the positive and in the negative way. In the positive way it differentiate the organization to the another one which don’t have a culture and structure. It explains the limitation of the firm.
It provides a sense of license among the employees to know each other for the success and achievement of goals. It can bring stability and social system in the organization. In any organization having culture and structure strange there will be working environment also provides appropriate standards of working environment.
Every organization has different policies rules and regulations that how to communicate with the employee. The organization also shows about the responsibilities that who will report to whom mean who will be responsible to whom majority in this kind of organization tasks a good decision foe the company Culture and structure has also some drawbacks on the business progress.
If the organization culture is too much complex then in the organization decision ill be very slow and also there will be centralized decision making in which the lower level employee’s will not be entertained. . 3 Discuss the factors which influence individual behavior at work All individuals are different and behave differently to people over time. Interpersonal behavior is different from individual behavior There are many terms and factors which influence the behavior. But the most important one is one is personality and Perception Personality will be defined as the distinctive traits, thinking and the characteristic of a person and the relation to the others there are two main actors which affects personality are heredity and environment.
