Reflect on your reading for the week, specifically Analytical Exercise 8. Is another form of structural configuration better suited to multiproduct, multiservice companies? If not, is there a form of departmentalization for multiproduct, multiservice companies which would match somewhat the divisional structure configuration?”
Explain how the following somewhat match each other:
• functional structure with simple structure
• divisional structure with departmentalization by product
• machine bureaucracy with centralized, mechanistic structure
• professional bureaucracy with decentralized, organic structure
Guided Response:
Your initial post should be at least 200 words in length. Support your claims with examples from required material(s) and/or other scholarly resources, and properly cite any references. Respond substantively to at least two of your classmates’ posts.
After reading this weeks chapter I am really torn. I can say that yes SOME companies aren’t best with multi-product and multiserviced using the departmentalization by product approach, but others are. I believe it boils down to who you have working there and who can handle the task of using that approach. As some companies grow they realized they need to use this approach to keep the flow of products.
Functional Structure and Simple Structure- the simple structure of small business is that in most mom and pop shops everyone reports just to the business owner. This is just like most “shops” that use the Functional structure because all orders come down from the owner(s).
Divisional Structure and Departmentalization of Product- Divisional structure is defined as a company divided into autonomous units which reports to a executive leader. Departmentalization of Product has each product and all of its activities placed into one department. All of the departments report to one executive
Machine Bureaucracy and Centralized, Mechanistic Structure- Both are rigid and are able to thrive in simple environments. Structure can only handle low levels of change.
Professional Bureaucracy and Decentralized Organic Structure- Both are more of a self-running or self-governing style, with few ranks, but they both survive in different environments.
References
Baack, D., Reilly, M., & Minnick, C. (2014) The five functions of effective management [Electronic version]. Retrieved from https://content.ashford.edu
I believe the divisional structure would be best suited for this type of organization. There the presence of independence in the unit even though it will have that centralized HQ. But if not, Departmentalization by-product I believe would work out quite well. In our text, it talks about giving the authority to on “executive or senior manager” to make those decisions on the product.
Functional Structure with Simple Structure
The definition for a Functional structure states “allows for top-level control with expertise maintained in the individual departments” (Baack, Reilly & Minnick. 2014). In a simple structure, almost everyone reports directly upward to the owner of the business (Baack, Reilly & Minnick.2014). They match each other in that both relate to lower businesses and they both promote the top-down approach. The two also advise the use of apex for each structural group.
Divisional Structure with Departmentalization by Product
Departmentalization by-product is characterized as “in which all activities related to a product or service are placed in one department under one executive or senior manager” (Baack, Reilly & Minnick.2014). Divisional structure is showed as “actually a set of autonomous units, each typically a machine bureaucracy unto itself, coordinated by a central headquarters” (Baack, Reilly & Minnick.2014). They match because they both grant for companies to be branched into departments managed by higher leadership.
Machine Bureaucracy with Centralized, Mechanistic Structure
Each topic match in a way that they both maintain a high use of methods, regulations, and performing tasks. Machine bureaucracy illustrates the features that have highly routine operating tasks grouped into functional departments (Baack, Reilly & Minnick.2014). In centralized/mechanistic organizations, first line staff members will come into contact with a small number of projects as they do their job (Baack, Reilly & Minnick.2014).
Professional Bureaucracy with Decentralized, Organic Structure
Professional bureaucracy confides on highly skilled specialist, for example, hospitals, colleges, and accounting firms. Decentralized organic structure refers to the “delegation of decision-making, authority, and power within an organization” (Baack, Reilly & Minnick.2014). Both of these cases somewhat match each other because they both lack an in-depth rank structure and contribute to their employees a degree of autonomy.
References
Baack, D., Reilly, M., & Minnick, C.(2014).The five functions of effective management (2nd ed.) San Diego, CA: Bridgeport Education. Retrieved from https://content.ashford.edu/books/AUMGT330.14.1
Discussion 2
Classifying Structure
Address the following questions and also provide the name of a company example of each structure with supporting rationale. Reply substantively to two other learners.
1. What kinds of companies should employ the simple structure organizational configuration?
2. What kind of companies should use the machine bureaucracy form of structure?
3. What kinds of organizations should feature a professional bureaucracy form of structure?
4. What kinds of firms should use the divisional form of structure?
5. What types of organizations are best suited to the adhocracy form of structure?
Guided Response:
Your initial post should be at least 200 words in length. Support your claims with examples from required material(s) and/or other scholarly resources, and properly cite any references. Respond substantively to at least two of your classmates’ posts.
Classifying Structure
What kinds of companies should employ the simple structure organizational configurations?
One type of business that lends itself to the simple structure organizational configuration is a locally owned pizza place. Our text states “The local dry cleaner, the corner restaurant, the auto repair shop, and many others are likely organized as simple structures” (Reilly, Minnick, Baack, 2011 p.3.5). In our area, there is a local pizza place called Brothers it is family owned, and the owners run the site as well as cook the products they would be considered as following the simple structure.
What kind of companies should use the machine bureaucracy form of structure?
These companies have several different levels of top management to the shop floor. “There is high formalization, central authority, and decision making flows through a chain of command” Organization that have a high volume of production, resulting in a routine (Reilly, Minnick, Baack, 2011 p.3.5). Large companies such as the post office, Walmart or McDonald’s are companies that would use machine bureaucracy form of structure.
What kind of organizations should feature a professional bureaucracy form of stricter?
Organizations that are more of that of government offices or offices licensed by the state should feature a professional bureaucracy form of structure. An organization such as schools, social security officers, social services and businesses of that kind, “Certified public accounting firms are licensed in most states. They have a professional organization (American Institute of Certified Public Accountants) and several governing bodies, including the Financial Accounting Standards Board and The Securities and Exchange Commission” ” (Reilly, Minnick, Baack,
2011 p.3.5).
What kinds of firms should use the divisional form of structure?
The companies that use the divisional form of structure is the post-industrialized business world. “General Motors, Microsoft, 3M Company, AT&T, General Electric Company, International Business Machines, Coca-Cola Company, United Technologies Corporation, and the Walt Disney Company” (Reilly, Minnick, Baack, 2011).
What types of organizations are best suited to the adhocracy form structure?
“Most people working in an organization have experienced a project team, task force, or a cross-functional team” (Reilly, Minnick, Baack, 2011). Organizations that are temporary are best suited to the adhocracy form of structure. A local construction company that has an active construction project and when it is finished they move on the other projects. Any small team that has come together to work for a standard finish, but without structure and very informal such as a local community putting on a car wash.
Kathryn
Reference
Baack, D., Reilly, M., & Minnick, C., & (2014). The five functions of effective management (2nd ed.) [Electronic version].
Instructor,
The following are examples of structural organizations.
Simple structure– This type of configuration can be associated with small entrepreneurships. Most commonly local mom and pop stores or local gas stations; non franchised. Its strength functions under a strategic vertex. Although fairly simple to operate, it has no formal system.
Machine bureaucracy – A business or corporation such as this involves departments that run with their own agenda, but yet achieving results aligned with the company’s goal. One fault of this type of structure is that it does not give room for change “This type of organizational design requires asimple and stable operating environment, which may be its single greatest weakness” (Baack & Reilly & Minnick, 2014). Mass producing businesses do not have the ability to adapt overnight. This often involves ordering new machines that require allocating funds and time. Some examples of this type of structure are Eaton, Cuttler Hammer and Styris.
Professional bureaucracy – Most commonly associated with skilled level professionals who work in a industry that provides a certain type of service. This could be anywhere from a nurse or doctor to a lawyer. They must maintain a high ethical and performance standard due to the governing body that holds their license. It is often self imposed, but the derelict of duty could cause them to lose their authorization “Accounting professional training incorporates the standards of conduct, legalrequirements, and the skills appropriate to the profession. Thus accountants have a degree ofautonomy within the organization and in the exercise of professional judgment” (Baack & Reilly & Minnick, 2014).
Divisional form – Often associated with machine made corporations. One of the weaknesses of this form is that it creates undue allocation of resources; creating internal competition with its own brand “It was a significant factor leading to GM’s 2009 bankruptcy reorganization and federalgovernment bailout. Now reorganized with fewer divisions and dealers, GM may be able to rebuildits business and value” (Baack & Reilly & Minnick, 2014).
Adhocracy – Any organization that creates project opportunities is using this type of structure. Most projects do not have an undefined end date. So when the project is ended those team members move on to a different venue or task. This type of structure can be attributed to all of the above except the simple structure example. Roth construction company and Turner construction are examples of adhocracy ran organizations.
Baack, D., Reilly, M., & Minnick, C., & (2014). The five functions of effective management (2nd ed.) [Electronic version]. Retrieved from https://content.ashford.edu/
