Topic: Structure of Organization Introduction From this topic Ive learnt about the structure should have in each

organization. It is defined as the establish pattern of relationship among the components of the organization. Sometimes, it also refers to the network of relationships among the individuals and their positions in particular organizations. To build up an organization, it is better to have a wellmannered structure so that it is clearl seen the division of department that consist in the organization. In order to design a good organizations structure, it takes into account a several factors which are benefits of specialization, communication problems in creating authorit levels and so on. It is important to create the structure of the organization according to the organizations need because that organization knows what the want and their desire goal of the organization so that it will running smoothl based on what had been planned since the structure of the organization framework. Organization Structure In the perspective of organizational structure, the structure could be classified into three components which are formal characteristics, t pes of group and inertia of the organization. !nder formal characteristics, it has been discussed about the formalization, division of labour and the number of authorit level. Formalization In term of formalization, it refers to the e"tent to which the activities, rules, procedures, instructions are specified and written. #n the other hand, formalization can be said as the scope and diversit of rules in each organization in which the detailed and specific rules becomes more formal and all the activities of the organization are standardized and in line with the procedures that had been list out and written formall . Formalization also has its advantages and disadvantages. $hen we discuss about the advantages of formalization, we could even sa with the standardized activities it can reduces the variabilit in the organization, the operating costs, the conflict and ambiguit , the scope of personal discretion since the decision is taken on the basis of standard rules and procedures. %esides, with the formalization, it will promote coordination because all the organizations activities are defined and specified which facilitate the process of coordination. The disadvantages of the formalization are on the basis of prevention creativit and fle"ibilit in organization. Division of Labour &ivision of labour is the degree to which tasks are sub-divided into separate 'obs in the organization. It is more focusing on task assigning to the emplo ees according to their e"pertise and skills specialization in order to enhance the productivit in the organization. The best

outcome of the division of labour are the performance of specialized 'ob will enhances the work efficienc , the workers can attain perfection on that costs for training. #pposites of that, division of labour has been criticized since it can be used for all t pes of 'obs, ma lead to monoton and boredom, and more concern on ph sical performance of the 'obs and underestimates the behavioral aspects of the workers. (ven though there is a contradiction in the division of labour, man organizations still appl ing it in their organization since the want to meet with the best productivit in the organization. Number of aut orit! levels" It was involving the organizational range from the flat structures in which a large number of subordinates report to 'ust one superior. )eanwhile, tall structures re*uired subordinates report to several superior. +s for knowledge, span of control refers to the number of individuals a manager can effectivel supervise. )eaning that, the number of subordinates directl reporting to a superior should be limited. Thus it is eas to make supervision and control become more effective since e"ecutives have limited time and abilit to control all of the subordinates people below him. There are two categories of span of control that should have either wide span of control or narrow span of control. + wide span of control will results in few levels of supervision and facilitates communication. $hile narrow span of control re*uires multiple levels of supervision and hence longer time for communication. ,onse*uentl , flat structure is relevant with the narrow span of control. The both structure are describe as diagrams below. Flat structure -arge number of subordinates The top level will cover all the people below him .e*uired wide span of control

Tall structure For bigger organization Fewer subordinates reports to several superior .e*uired narrow span of control $ide Span -arger subordinates report 'ust to one superior

Narro# Span Fewer subordinates report to several superior %dvantages

Tight and close monitoring

/as freedom to e"press their initiative

,loser relationship between manager and Subordinates have been trained and able to subordinates make their own decision. Feel stifled due to e"cessive monitoring Disadvantages )ore e"pensive and complicates Fewer managerial

Types of Structure in Organization There are four types which bureaucracy, entrepreneur, free and matrix. Bureaucracy What is bureaucracy? Bureaucracy is a structure with highly routine operating tasks achieved through specialization, formal rules and regulations. t is the most common form of organization. The strength of bureaucracy is on its ability to perform standardized functions highly efficiently. Based on !ax Weber "#$%&', bureaucracy was considered as an ideal form of organization. t is because of bureaucracy focused on division of authority, taking order from the head voluntarily, and the decision making is not done by and individual. The bureaucracy is normally practice by large organization with skill workers. There are several characteristics of bureaucracy organization which is hierarchy where (obs and duties are specialized at different level. n terms of rules and law, all responsibilities are focus to division of power according to the rules and law. )or level of authority, each individual has their power and (urisdiction supervise by their top officer. The other characteristic of bureaucracy is impersonality where responsibilities and duties separate from personal interest, technical abilities and career orientation work and promotion based on merits and performance. This enables the organization to have an expert in their work of duties. Advantages *onsistent operation system *lear responsibilities and duties ,nity of the controlling system and the decision made +ot individuals decision and process -low but within the time allocated Disadvantages +o individual free Worker not creative -low decision

,nder bureaucracy, there are four structure which are function structure, production structure, division structure and geographical structure. -tructure is created depend on the functions. t is when units and sub.units of activities are created on the basis of functions. /ll activities connected with each such function are placed in the same unit. The advantages of the function structure is functional specialization in each unit, which leads to operational efficiency of people engaged and the organization as a whole derives the benefits of specialized operations. )or the production structure is re0uired whenever specialized knowledge of certain products or services is needed. This kind of structure usually occurs in large diversified companies. Besides, division structure is for large organization which is deal in multiple products to serve more than one distinctive markets. The organization is divided into smaller units which are entrusted with the business related to the different products or market territories. While geographical structure is a structure when organizations are spread throughout the world or have territories in many parts of a country, departmentalization by geographic area may provide better service to customers and be more cost effective.

Matrix !atrix structure is the combination element of functional management with ad hoc and flexible product known as the pro(ect management organization. t also involves bringing together personnel with different backgrounds and experience that bear on a pro(ect and giving them certain time period to complete it. 1nce the pro(ect is completed, these specialized personnel return to their regular work assignments. The disadvantages of matrix structure are related to the vague role, competition of power, and excessive overhead.

Entrepreneur This kind of structure is where the management focuses on 2one man3 decision. -ubordinate do and implement work according to the direction. 1n top of that, the management is more emphasizes on process not on the result. n addition, the decision making by the top management is final and cannot be alter. The weaknesses of this structure are slow to develop4 subordinate staff cannot make a decision, high risk, little creativity, minor decision could not be solve by staff and not involve tea spirit in the organization.

Free -uccessful free structure organization much depends on individual3s performance. This structure was implementing for small and professional3s organization. The goal is to give assistant to individual organization. 5owever, this kind of structure is difficult to get support and cooperation to carry out 0uality pro(ects.

Centralization versus Decentralization *entralization and decentralization are different sub(ect matter. ,sually this sub(ect matter is involving the principle of delegation of authority. )or centralization, it is called as centralized when it is related to the delegation limited amount of authority in organization. While, when a significant amount of authority is delegate to the lower levels in the organization, it is called as decentralized. n term of decision making authority, the employees in the highly centralized organization have limited range to make decision. n contrast, employees in the decentralized organizations have a very broad in the scope of authority to make a decision.

Advantages of centralization and decentralization *entralization *loser control of operations ,niformity of procedures policies, practices, 6ecentralization )aster decision making without resort to higher level consultation and 7xcellent training experiences for promotion to higher level management 6ecisions better adapted to local conditions

Better use of centralized, specialized experts