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Essay: Organisational Structures: An Overview

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  • Published: 24 November 2015*
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According to the (council dictionary fourth edition, p 1103) organisation means means union organization comprising parts and other people in a body (association, corporation, etc.) for specific purposes (mutual interest ). According to (Professor Schein (1973), the organization serves as a rational adjustment of human activity in order to achieve the goals set by the division of labor, and also functions through authoritative hierarchy ) . (Ralph Davis (1951) also quote that the organization is a group of a number of a group of large men who worked under one head or manager to achieve an objective)
Chester Barnard in his book, “The Function of the Executive” published by Harvard University Press, 1938, said that the organization is a system of personal power activity, consciously coordinated to achieve organsation goal. (Ralph M. Stogdill, the author of “Dimensions of Organizational Design” output of Pittsbury University Press, 1966,) defines the organization as a system of work that is done with structure that contains position and feelings are shaped and determined in advance of the role and the position filled by actors or workers.
However what is important in the definition of organization is that it is a group that has certain parts in it which consists of a group of people who work together and help each other and their surroundings are interwined with each other in order to achieve the objectives and goals of individuals, groups or organization.
Based on the chart, the Department of YAYASAN TERENGGANU has established the functional structure of different tasks or work to achieve the objectives and goals of the plan. Refering to a functional structure that has formed above, the Director General of YAYASAN TERENGGANU has the highest function power where he is responsible for administering and directing an organization with established policies, rules, working methods, making legal advise, coordinate the activities of the organization, department or unit / interior and goals of the organization , There are two parts function under the direct order Director General which is the Deputy Director (Operations) and Director General (Development) where both the function serves as chairman of the unit / section below.
The parts have different functions or tasks workflow. In addition, the functional structure is also designed to enable many individuals with expertise and experience in controlling and supervising the work of each taskforce . Besides, it can provide opportunities for member organizations to learn from other people and become more efficient in their job. Thus, indirectly it has facilitated the process of controlling and adjusting the good work. In addition, the functional structure has been set up to facilitate the work and service operation which is designed to run more smoothly. In addition, the functional structure serves as the focus and gather members or employees to facilitate organisational needed skills and use certain skills where the staff are needed. This functional structure allows the division of labor as a whole and indirectly facilitate the process of communication and interaction that can improve the ability and efficiency in producing the best technique in performing its obligations and is the best way to resolve any problem Moreover, it also facilitates the performance of some top managers know- how divisions, units or departments within an organization. The work done or carried as a whole can be adjusted for all activities and skills will be classified or grouped in one place / divisions under one head. In addition, the division function makes supervision easier because each unit has a chief and specific skills. In addition, the function can be used according to the change of the work, fast and effectively done

1) The task of supervision becomes easier because each head of department has and equipped with specific skills.
2) Any functional problem between units, departments and divisions can be easily identified and brought to attention immediately
3) Resources can be used efficiently
4) The functions and individual position is clear.
5) Expertise, knowledge, skills and experience can be consolidated or combined among individuals.

1) The response time might be slow and interupted because of waiting above from higher authority
2) It does not encourage innovation between staff and its perspective of view is narrow
3) Recaiving feedback may be slow because of the units, departments and divisions current un-done task
4) It contributes unto the lack of communication between units, departments and divisions.
5) It is weak in addressing all individual needs because of the slowness might occured in terms of action plan that can leads to un-achievable organisational objectives

Retrieved from : http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/annual-report-2007b.pdf1.2

The organizational structure of geography divide the workers by geographical area designated as below at different part of its bracnches operation . It was formed on the request of customers who are far away or outside an organization’s operations center. The organizational structure of geography in operation among different staff is responsible for carrying out business activities in designated locations. The chart below shows an example of the organization of geographical structure adopted by The Air Asia Management . At below of the image, I also present the advantages and disadvantages of the organizational structure of geography.
In this geographic structure, units and divisions based on the places and the geographical area. This structure is suitable when companies or offices operate in many different geographical areas in which the state, religion and country. In addition, the geographical structure is the coordination of work and workers in the unit or where different parts are all responsible for each of the organization or activity in a specific geographical area. Based on the geographical structure chart of the Air Asian Management , it has expanded its production in some specific geographical area. The advantage gained is the company able to expand its business across borders including financial markets, social relationships and the resulting product or products to the local market. In addition, the company is able to foster a closer relationship between places worldwide. The company is also able to expand the understanding and friendship between the peoples of the world with opportunities for personal conversion that is progressively emerged. Thus indirectly the company has formed or able to meet its own slogan which is “Now, Everyone Can Fly”. In addition, the company is also able to improve the standards prescribed or used in the ranking of global requirements such as the standards prescribed or used in the ranking of global requirements such as copyright law. The company on the other hand is also able to shape the universal’s value and get the technology needed to help in spreading its market (marketing) throughout the world. The company is also conducting management activities between the border and the processes of development which will be adopted when the emergence of a global market in the future. In addition, these companies are also more frequent use of advanced technologies because it often built connection or get connected between the border and to develop a global telecommunications infrastructure

1) The whole organisation is able to use the expertise of all staff in ‘worldwide’ speaking according to the geographical location of the organization.
2) Products and services can be produced and marketed to different countries thus, make marketing job easier and effective
3) It is able introduce the organization to the world.
4) The organization becomes larger.
5) ) It can reduce organisation costs by putting the resources of the organization closer to the geographical area specified.

1) There might be difficulty in coordinating the departments in the geographical area because its location that isfar from each other.

2) Lack of control might occur to each geographical department of the organization

3) Redundancies can happen

4) It can not guarantee the full loyalty of employees to the organisation

5) The existence of a change in products ( travelling ) and services as cultural factors, physical and weather

Retrieved from :http://kamarularnizam.blogspot.com/2015/02/contoh-pbs-pengajian-perniagaan.html

The product is the output of an organization that can be produced in the form of goods or service . This refers to the coordination of work between workers in a unit or the other. This means each unit hold different responsibility to produce the output of products or services that have been set. The advantage of this section is to allow employers and employees to broaden their experience and expertise in relation to the overall activities of the products or services to be offerd. Accordingly, this allows management to assess the performance of work done in each work unit.
From the image of product structure below , SAMSUNG company is capable of designing and producing a wide range of different products which generally meet the needs of everyone. All of these products are produced in different part or unit of work and function. Each division will be headed by a chairman and a chief that is responsible for coordinating the work or production activities as well as other activities such as purchasing, marketing and distribution of any products. Products produced by SAMSUNG company headed by a chairman with responsibility to ensure the product is produced in accordance with the criteria set and ensure marketing, distribution is done correctly. Thus working to produce each product is easy because each product will be distributed to the head that will manage it and supervise it
The separation of individual products and these products have facilitated the production of such products. This separation is important because it can generate and collect ideas and brilliant creative in producing these products to market s. Each product has a function, purpose, use, benefits and advantages of its own.
The resulting product is equipped with features such as it is psysicalll attractive, colorful, and the materials used to form the product . ( in eaxample: how a new I-Phone is formed with its colourful structure and its function) Apart from the physical characteristics SAMSUNG companies also produce products based on non-physical characteristics such the image, concept and its flexibility to use. These features make the users and buyers interested in purchasing.
With the diversity of the products it can also solve the needs of purchasers or users and the importance of such a requirement in other words, the higher term needs of a person, the higher the consumer is willing to buy
The company further then makes high quality products and good price comparable with other competitors after a thorough discussion of each of the products made

1) Managers and employees can develop their talents, their experience and expertise in product development activities.
2) Managers in every department can monitor the activity of each unit and staff in the production of the product under operation.
3) A very clear lines of responsibility between departments.
4) The structure of the product is very suitable for large-sized organizations.
5) It is appropriate for organizations that produce various kind of products

1) The Manager is focused only in products management
2) There is a lack of communication between departments and its staff
3) The cost of the operation is big because each department has its own managers and experts.
4) It requires a high amount of workforces .
5) It does not promote cooperation which is a very important value because each department is of different expertise

Retrieved from :http://www.ibm.com/developerworks/rational/library/apr05/hanford/


Matrix structure is a result of two or more of the combined organization at the same time and the matrix structure is suitable for use when an organization has to handle a large project or task at a time. It is very complicated and complex structure as of individuals from different organizational structures work together to control and ensure the success of a project to achieve the intended purpose. There are some factors that distinguish this matrix structure that differentiates with other structures such workers report and work-related contact of two ifferent supervisors or managers.
“Matrix structure developed as a way to improve horizontal coordination and information sharing” (Richard. L Daft, 2008). Managers have a responsibility to ensure the success of the projects undertaken while the departments of other acts to maintain technical competence in their work.
(Harold Kerzner, 2003) also quote that there were certain rules that exist for the construction of a matrix structure
1) “participant must spend full time on this project to ensure the loyalty”
2) “there must be good communication channels between managers and independent access”
4) “there must be a quick and effective methodto resolve the conflict ”

For organizations like this ( image 1.4 ) that are experts iin commissioning employees from different units and parts to perform tasks for one or more projects led by a project manager. The project was carried out on a temporary or contract where its members consist of different functional departments that collaborate in carrying out the project. In this structure, the manager will be responsible to his supervisor or the head.
There are lots of advantages to be obtained. Including the presence of matrix functions provide flexibility (flexibility) to the organization. Besides, it enable the employee to discipline themselves to do two or more tasks provided with full responsibility. It also stimulates the matrix function of co-operation between the employees and other employees in two or more work done. Among other advantages derived from this organizational structure is that they can learn new skill at one time during the working process. Matrix organizational structure also allows them to transfer skills to the other participant workers to the areas that are and this in turns help when desperation of skills workes are in demand in certain areas. In addition, the matrix structure of this organization can strengthen the relationship between each worker because they are connected and can carry out their duties in accordance with the requirements set. This organizational matrix structure will also be able to further develop desired goals and is of good use when the organisation need to use two or more employees to perform two or more tasks / work in an organosation
1) It encourage the staff to use resources more effectively.
2) It provides more accurate and extensive information.
3) Collaboration between disciplines and expertise is available to all sections.
4) Flexibility and adaptation to the changing environment.
5) It fosters the spirit of cooperation which is an important asset for all organisation

1) Confusion can happen because there are two directions.
2) It can be a complicated approach because instructions can come between the two sides of different departments
3) More meetings and discussions need to be held to determine action plan
4) Distribution of resources becomes difficult when many projects are carried out simultaneously.
5) There will be a dominant power struggle when there are managers who are more prominent.


Each organization has a clearly established objectives and goals of its own. In general, the organizational chart has been used by many organizations to assist their operations. Without careful planning and the right implication or action plan, the organization would not be able to operate at the level best to achieve the goals set. It also requires knowledge and efficient management of the organization is to ensure great success. In short every organization should take into account every factors either internal or external to make sure every task is done accordingly and smoothly in line with the goals set

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