Types of Organisational Structure

Functional organisations are usually organised through the specialist functions that each department has to offer. This type of structure is seen most often where there is only a single product or service on offer by the company. A good example of a company that is organised to this style is British Airways. They would be a centralised organisation that has several hierarchical levels within the company. The first level would be broken into departments like finance, personnel, marketing and so on where other levels would then be identified.

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Product or market organisation is very similar to functional organisation as it is based around lines of authority, but the difference is that the first level is divided into geographical locations rather than departments. Then within each geographical location you then begin to find the more traditional lines of authority. Marks and Spencer is a good example of this structure. All the stores in a certain region will report to the area manager, who then reports to the head office. Yet within each store the department managers still have to report to their store manager.

A holding company is very similar to that of a market structure, also known as divisional structure. A good example of this was British Rail before privatisation. British Rail was the main company, but there were several internal departments within the main one, e.g. Network South-East, Cross Country Sprinters services, main line routes up the east coast and the west coast. These were all independent divisions of the same overall company.

Matrix structure is associated to a company that produces many different products, but each product has to be managed simultaneously. CS is a good example of this as they produce many products. The distribution manager, maintenance manager, quality manager, sales and marketing manager all must communicate with the manager for each production team at the same time, not just one product at a time. The lines of command go from one department to several others, up and down, not just downward. How management style, Culture and Organisational structure interrelate Management style, culture and organisational structure interrelate together in Cadbury because they all work together to help the business to achieve its objectives; in order to lead a successful business.

Cadbury has strategies for the organisation, continually to motivate members of staff to support this process, and market change within the organisation. Management style, culture and organisational structure interrelate together in Cadbury because they all work together to:  Develop Strategies: CS good management involves long-term or sometimes strategic planning. Without members of staff (employees) at CS having a clear idea of CS’S goals, employees don’t know where the CS is going, or the best means to achieve the goals.

An institution needs to define where it’s going (the vision), why it’s going there (the mission), and how to get there (the strategies). It will then be easier to use this process to work cohesively towards organisational goals. Tools in this section for helping you develop a coherent strategy for your organisation include the affinity technique, force field analysis, SWOT analysis, and strategic analysis. Due to this employees at CS would feel they are part of the organisation.

Marketing Change: Quality improvement is about continued readiness to make changes towards improvement. However, every change of attitude or practice implies advantages and disadvantages. For people to accept a change, the advantages always have to be greater than the disadvantages. To promote the idea of change, you need to market its advantages. Tools in this section that will help you market change include developing a marketing plan, stakeholder analysis, and negotiation techniques. An example of making changes towards improvement, is when CS creates a new chocolate bar; for instance the chocolate bar, Fuse.

It was the highest selling chocolate in the year 1996. People accepted the chocolate because it was different, which means that CS filled a gap in the market. It also reached the consumer by promotion strategies. Every promotion had a meaning, for example the bill board promotion for fuse used a motto that was confusing. That’s what CS were trying to do confuse the consumers, so that they repeatingly, think of the motto to try understand it and what this is doing is reminding the consumers of the chocolate Fuse.

Motivating People: Motivating people to perform to the best of their capabilities and in the best interests of the organisation are a huge task. Important elements that CS uses in motivating their includes leadership, clear organisational and individual goals, rewards based on performance of staff, and participatory supervision. CS helps to motivate their staff also by including developing a supervision visit plan, effective meeting management, and techniques for solving conflicts.