MANAGING ACTIVITIES

1. What are the types of organisational structure?

Line, functional and line-and-staff structures It’s a very rigid structure, with little information exchange, typical of bureaucratic companies in which there is little collaboration.

Project-based structure highly dynamic and creative companies – such as software developers, architecture firms, special industrial equipment installation projects and event organization companies

Matrix structures This structure is widely used both by companies that are constantly launching new products and marketing campaigns, for example, and by companies that have project-based structures, but also believe that functional supervision is necessary and important.

5 Organisational Structure Examples | Which to use? (2018, March 28). Retrieved August 28, 2018, from https://www.heflo.com/blog/business-management/small-business-organizational-structure-examples/

2. What are the processes in the internal structure?

Function: Functional organisation meant that a company is divided into broad sectors each with its own particular specialism or function, for example, marketing, accounts or human resources. Traditionally, functional organisation is hierarchical, with some form of line management.

Product: When a large organisation produces a range of different products, it might find it convenient to create an organisational structure based on product lines. A great advantage of this form of structure is that divisions can concentrate on their own market areas. It also becomes possible to assess the profitability and effectiveness of each sector. At the same time it is still possible to share expertise between divisions and to share combined services such as a combined transport fleet.

Process: The advantages of organizing on a process basis are that, it is possible to set up teams of similar minded specialists. It becomes easy to identify points in the production process at which things go well or badly. It is easy to introduce new technology at a given stage of production

Geographical area: There are a number of advantages of organising on a geographical basis: Setting up distinct regional divisions makes it possible to respond quickly to local needs, issues and problems. Setting up national and regional divisions makes it possible to tailor the operation of an organisation to local conditions. Differences would include those of language, law and custom. Local knowledge is best gained by hiring local specialists.

Type of customer: The advantages of organising in a pattern based on having different sets of customers are, different types of customers can be dealt with by separate departments. Customers will be more inclined to deal with a business with departments concentrating on their particular needs. It is easier to check on the performance of individual products.

LLP, B. C. (n.d.). Strategy theory. Retrieved from https://businesscasestudies.co.uk/business-theory/strategy/internal-organisation.html

3. Which are the main departments in a company?

A typical business organisation may consist of the following main departments or functions:

• Production: The Production function undertakes the activities necessary to provide the organisation’s products or services. Production planning and scheduling, control and supervision of the production workforce, managing product quality, maintenance of plant and equipment, control of inventory, deciding the best production methods and factory layout.
• Research and Development: Research and Development, concerning the implications of product design for production methods and cost.
• Purchasing: The Purchasing function is concerned with acquiring goods and services for use by the organisation. Quantity, quality and price.
• Marketing: Marketing, concerning desired product functionality, appearance, quality, durability and so on.
• Human Resource Management: Human Resource Management, concerning staff motivation implications of job design and production methods.
• Accounting and Finance: Finance, concerning the availability of funds for purchase of new equipment and the acceptability of inventory levels.

Organisations and management accounting. (n.d.). Retrieved from http://www.open.edu/openlearn/money-management/organisations-and-management-accounting/content-section-4.4