Arguably, organizations are structured in various ways depending on the aims and objectives they want to achieve. To some degree, the organizational structure influences the organizational process in an organization. In this case, the term ‘organizational structure’ is used in reference to both the horizontal and vertical linkage of authority, departments and jobs within an organization, (Chuck, 2006). On the other hand, organizational process refers to the activities that take place in the process of changing inputs into outputs that are valued by clients. The main aim of this essay is to analyze the relationship between organizational structure and organizational process. Organizational structure will also be analyzed in detail by examining functional departmentalization as an example. To clearly show the meaning of “organizational structure”, Microsoft serves as a good example. In terms of vertical structure, Bill Gates is the Chairman and founder of the company. Below him is Steve Ballmer who is the CEO of the company. Down the line are three division presidents answerable to Ballmer. Following are a number of vice-presidents who have been put in charge of different operations. All these people undertake different activities in the company in the attempt to meet the needs of the customers.
Admittedly, organizational structure and organizational process go hand in hand. The structure of an organization clearly indicates who is responsible for what as well as who reports to whom. Therefore, the structure assists or rather defines the activities that are to be undertaken within an organization at a given time in a given manner so as to address a problem at hand. Notably, organization process derives its objectives from the structure in place. Harold & Heinz, (2006) assert that, information is very crucial in this case; mainly because organization process takes place in order to address a certain issue. It will be difficult to effectively tackle such issue if there is no enough information. For instance, Microsoft relies on the feedbacks from customers in producing various software. As such, organization process depends on the organizational structure and it becomes difficult to undertake the process if there lacks a clear structure within the organization.
To effectively undertake operations in an organization, departmentalization becomes inevitable. According to Charles, & Raymond (2003), there are various types of departmentalization, whereby functional departmentalization is an example. Functional departmentalization categorizes various activities within an organization according to the functions that are to be carried out. To be more specific, it is the arranging of work and the workforce into separate units in charge of particular functions or sections of expertise. Best examples of this kind of departmentalization are that which is found in most Advertising Agencies and Insurance companies, (Chuck, 2006). Both organizations have different departments such as, sales, accounting, and human resource.
For Some of the strengths of functional departmentalization include: firstly, it facilitates in-depth specialization; secondly, it makes coordination in the functional vicinity a bit easy; thirdly, the top management is usually in control as directions are easily followed, and lastly, it enhances increased efficiency which results from putting together alike area of expertise and people with universal know how and skills. However, functional departmentalization has its own weaknesses, (Richard, 2007). Firstly, it is argued that there is poor communication across the functional areas. This is generally because there may be or rather it limits the establishment of clear communication channels across the functional lines across the functional areas. Secondly, there are chances that there will be a limitation in the view of the goals of the organization. Lastly, response to external changes for instance innovation may not be effective.
Charles, C. S & Raymond, E. M. (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press.
Chuck, W. (2006). Management. Washington: Thomson South-Western.
Harold, K & Heinz, W. (2006). Essentials of Management. Washington: McGraw.
Richard, L, D. (2007). Management. New York: Cengage Learning.