Mgt/230 Organizational Structure Analysis

Organizational Structure Analysis
Kelli Jo Searles
Susan Hickman
MGT/230
February 16, 2015
Todd Lambertson

Organizational Structure Analysis How does a company become organized with the daily tasks and operations? John Whybrow chairman of Wolseley, mentioned, "There 's always the issue of how to organize large companies, and there are fundamentally two ways of organizing” (Whybrow, 2010). Differentiation and Integration are the two fundamental ways in which to organize. Differentiation ~ is the different sections within the company that employs individuals. The individuals will then work on various kinds of jobs that require the use of various skills and techniques to complete the job. Whybrow states: “One way is in terms
of lines of business: in other words, you take an activity, say fluorescent lights, and you set up an organization that develops, makes, markets, sells and distributes fluorescent lamps to the marketplace. That 's a line of business" (Whybrow, 2010). Integration ~ all the units within the company, work together within the individual sections of the workplace, to produce an end product. When people don 't get involved with reports and only management does, it can make the whole thing more complicated. But when everyone reads the reports and gets involved it helps the overall business. (Bateman & Snell, 2011). "Horizontal differentiation is different from vertical differentiation because the elements work simultaneously" (Bateman & Snell, 2011).
Horizontal differentiation includes functional, divisional, matrix and the network organizations.
Network Organization
Kelli mentions the definition of network organization being ~ "the collection of independent, mostly single function firms that collaborate to produce a good or service" (Bateman & Snell, 2011). Some pros of networking would be, being able to be closer to the consumers, eliminating the amount of disruptions, and seeing the reactions the customers give and then being able to adapt to them accordingly. The con of networking organization is being able to adjust after losing the control over whatever procedures the company gives to others.
Functional
Organization Functional organization ~ "jobs are specialized and grouped according to business functions and the skills they require: production, marketing, human resources, research and development, finance, accounting, and so forth" (Bateman & Snell, 2011).
Functional organization happens is all sizes of organizations. Sue explained how functional organization can be both a pro, and a con. Sue stated the con to be how individuals may tend to care more about their functions than the functions of the company (Bateman & Snell, 2011). Kelli and Sue both agreed that the pro to a functional organization would be, the company employing a worker that knows that field of work well, and that can work at a high rate of speed. By having this kind of worker, it will help to minimize the number of mistakes by ensuring confidence within the line of work. Divisional Organization. Divisional organization ~ puts in place the order in which the activities will occur within the company. Kelli mentioned that the pro for the enterprise is that, individuals will learn to become whole within the workplace. While Sue suggested that the con would be, it could become harder for the business to receive needed information, because of working with so many other
divisions. Matrix Organization. Matrix organization ~ "a hybrid form of organization in which functional and divisional forms overlap" (Bateman & Snell, 2011). In other words, employees have to print two set of reports and issue them to the right divisions. The major potential advantage is a higher degree of flexibility and adaptability. (Bateman & Snell, 2011). Sue and Kelli both agreed that the con is, that it violates the unity-of-command principle, which states that a person should have only one boss (Bateman & Snell, 2011). Conclusion. As a group and as a team, we all understand and agree on the importance of running and operating a business with all four horizontal differentiations: functional, divisional, matrix and the network organizations. The four horizontal differentiations allow a company to run smoothly and efficiently while still becoming successful.

References
Whybrow. (2010). Structuring Your Organization. Retrieved February 16, 2015 from Whybrow, MGT/230 website, week 4.
Bateman, T. S., & Snell, S. A. (2011). Management: Leading and Collaborating in a Competitive World (9th ed.). Retrieved February 16, 2015 from The University of Phoenix eBook Collection database