The Organizational Structure Of Managers Management

Essay add: 28-10-2015, 15:10   /   Views: 346

The organizational structure depicts the way each activity in an organization is performed, the way formal jobs are allocated, the way resources are optimally allocated, and the way departments are coordinated. Organizational structure shows the position of a unit or division in the organization. Next, organizational structure also shows the types of jobs performed in an organization and the relationship between each job. An organizational structure is usually depicted in a graphical illustration knows as the organization chart. Below is an example of organization chart.

Finance Manager

General Manager

Administration Manager

Production Manager

Marketing Manager





The organization chart shows each department's functions, positions, and relationship between each department in the organization. An organization chart has several characteristics. Firstly, each box shows the individual's position, department, division, or unit in the organization that has been given specific functions or responsibilities. Next, the line that links the rectangles shows the communication relationship between individuals, departments, units, or divisions according to the chain of command. Third, each individual will report to his supervisor in the same management level. The organizational structure must be formed according to the organization's strategies. The organization's strategies are formed in order to determine 'what should be done to achieve organizational goals', while the organizational structure is created to determine 'who is responsible' and 'how to goals can be achieved.

In organization structure have four common structures, there are entrepreneurial structure, functional structure, divisional structure, and matrix structure. The different organization structure each has different function and different organization chart. Firstly, entrepreneurial structure is chief executive (CEO) is retains control over large or important ventures of the organization. There are other managers to carry out their roles in relation to the chief. Next, this structure has clearly defined lines of authority for all levels of management and has a highly bureaucratic procedure. In an entrepreneur structure, every things decided by the top management such as café and clinic.

Secondly, functional structure is divides the activities of the organization into different functional areas. Each functional area would have its own management structure, so this structure combines both hierarchical structure and centralized structure. In a functional structure, activities or tasks are grouped according to organizational functions such as production, marketing, and finance. For example, the marketing manager is responsible to market all products produced by the organization and perform other duties related to marketing.




Fresh Milk



General Manager Furthermore, the divisional structure is a form of departmentalization whereby activities are grouped according to similarities in terms of products, market, and geographical location. A divisional organization can be divided into three types of departmentalization: product, geographical, and customer. Product departmentalization involves the grouping of activities or tasks based on the products produced by the organization. The organization chart as shown at below shows three product divisions: chocolate product, sushi, and fresh milk. Each division has its own functional departments such as marketing and finance departments. Product departmentalization is usually practised by organization is not suitable due to difficulties in controlling the organization.

Product Departmentalization


Branch Manager


Branch Manager


Branch manager

General ManagerNext, geographical departmentalization is performed based on location. For example, when the headquarters of company in Kuala Lumpur and they open a branches in other locations such as Kedah, Perlis, and Sabah. Therefore, the general manager in Kuala Lumpur is responsible for managing all the branches with the assistance of branch managers in Kedah, Perlis, and Sabah. Every division is responsible for the production and marketing of products in their location. Below is the organization chart of geographical departmentalization.

Geographical Departmentalization


Office Customers


Ordinary Customers


Industrial Customers

General ManagerIn addition, customer departmentalization as depicted in below is based on customer groups who purchase the organization's products such as industrial customers, ordinary customers and office customers. Each division will be managed by a manager responsible to the services general manager. The services general manager will control all the decisions made by manager of each division. Each division is responsible for producing and marketing the products that will use by consumers in their market. These types of departmentalization can fulfil customer needs and requirements promptly.

Customer Departmentalization

Lastly, the matrix organization operates in a horizontal and vertical organizational structure whereby an employee report to two supervisors such as the division or line managers and functional or project managers. The matrix organization is also known as the Multi Commands Systems. In a matrix structure, human resources are used efficiently because the skill processed by each employee is combined to develop a new product and perform functional duties. Moreover, the matrix organization operates in an environment that is always changing due to tight competition and technological changes. For example, the competition services are offered by the organization. The effort and creativity of employees must be combined in order for the organization to maintain a competitive advantage in the industry.

Definition of event management is the process by which an event is planned, prepared, and produced. As with any other form of management, it encompasses the assessment, definition, acquisition, allocation, direction, control, and analysis of time, finances, people, products, services, and other resources to achieve objectives. An event manager's job is to oversee and arrange every aspect of an event, including researching, planning, organizing, implementing, controlling, and evaluating an event's design, activities, and production.

My company is Wonderful Gardening Sdn Bhd. My company are doing landscaping; we have helped the households to maintain their plant or grass, or have a project to design on a new company, factory, new houses and the image of city. We have over 20 years experience and had won many rewards. Our department have site operations, finance, and personnel. Finance department is control the capital, under site operations department have project managers, different project manager have different tasks and project to do. However, in personnel department is the place that our company hire foreign workers from Nepal, Vietnam, and others country to come here and work.

Our company are using functional structure. We are using this structure it is because the project managers have different project or tasks to do. As an example, one project manager are doing routine work to do such as maintain the plant in different households, however another project manager is to help other company, factory, or houses design their surrounding areas or to help their have a small garden in their building. Below is an organization chart of our company Wonderful Gardening Sdn Bhd.







Project Manager

Work Scheduling


Site Agent

Plant & Materials


Project Manager

Project Manager

Finance Director

Personnel Director

Site Operation


Managing Director

Furthermore, the advantages of functional structure is emphasizes job specialization, minimizes conflicts in resource utilization, the problem solving process is more effective due to specialization of skills, decision making process is more effective because the authority of making decisions is centralized, and easier to control the organization as managers practise job specialization. Next, the disadvantages of functional structure is involves the implementation of routine tasks, lack of communication among employees in different departments, career development is limited to certain areas, employees tend to concentrate on achieving departmental objectives, and cannot produce employees who are skilled in many areas due to job specialization.

In short, functional structure is practising the manager job specialization, job specialization or job division involves dividing tasks into smaller jobs. Each job will be performed by different individuals. The company can have a gathering or have a travel to the employees. With this ways, the employees can improve their relationship each other and can prevent conflicts, and also can makes this gathering or travel as a rewards to encourage the employees.

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