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Reflect on your reading for the week, specifically Analytical Exercise 8. Is another form of structural configuration better suited to multiproduct, multiservice companies? If not, is there a form of departmentalization for multiproduct, multiservice companies which would match somewhat the divisional structure configuration?” Explain how the following somewhat match each other:
• functional structure with simple structure
• divisional structure with departmentalization by product
• machine bureaucracy with centralized, mechanistic structure
• professional bureaucracy with decentralized, organic structure
Functional structure and simple structure are the most common forms of structure. Small companies use them forms of structure. With the smaller companies, most employees report straight to the owner of the company because there are not any other managers or supervisors. Both of these structures are good for businesses that are just starting or small. Divisional structure and departmentalization by product forms are used for multiproduct businesses. Larger companies divide into departments consisting of people who specialize in certain areas. Departmentalization by product is where you have all product related services under that one department. When you have someone qualified in a certain department they are of more help to customers that are looking for answers.
Machine bureaucracy is known as a standard trademark but more in detail than mechanistic bureaucracy which is more a standard company that has flexibility. Machine bureaucracy is more about routine than mechanistic bureaucracy because the machine company does the same thing day in and day out. Both of these types of companies rely on their procedures and rules that are in place. Professional bureaucracy and organic structure are similar because they are both decentralized forms of control. A professional structure would be a company that has very knowledgeable employees about their jobs. Organic structure is more flexible to guarantee the company best fits what they need to offer their products and services. Reilly, M., Minnick, C., & Baack, D. (2011). The five functions of effective management (2nd ed.). San Diego, CA: Bridgepoint Education, Inc.
1) What kind of companies should employ the simple structure organizational configuration? Simple structure configurations are starter companies. They hire top level managers to ensure the company serves its mission in the most effective way. Employees who work for these types of companies only answer to one manager which is typically the owner. These businesses mostly have a small crew that work there. These types of organizations work their way up the divisional structure. An example of this type of business would be a pet grooming. The owner is usually always present and there are no managers. 2) What kind of companies should use the machine bureaucracy form of structure? Bureaucracy structures are mass producing factories that work on a set routine schedule and require strict rules which are implemented by several managers.
These types of companies are a stable work environment and employees do the same thing every day. Any company that requires a uniform standard to operate and produces mass quantities of a product will use this type of structure. An example of this type of company would be Snap On. 3) What kinds of organization should feature a professional bureaucracy form of structure? A professional bureaucracy may be used when a company relies on highly skilled professionals delivering goods and services at the core of the company. An example of professional bureaucracy would be the police force. All police duties duties require professionals to accomplish them. 4) What kinds of firms should use the divisional form of structure? Divisional form of structure would be companies that are ran by executive managers who make the rules and send them down the chain of command to put in place. These companies produce a mass amount of diversified products which are dispersed throughout different parts of the company.
These types of companies started out as a simple structure and have formed into divisions over a period of time. An example would be US Cellular. 5) What types of organizations are best suited to the adhocracy form of structure? Adhocracy forms of structure are mostly used by temporary task forces or teams that are later separated. This type of structure is long term. The employees work on projects or jobsites and once completed they move on to their next project or jobsite. An example of adhocracy form of structure would be construction workers because they work together for long periods of time but move from location to location. Reilly, M., Minnick, C., & Baack, D. (2011). The five functions of effective management (2nd ed.). San Diego, CA: Bridgepoint Education, Inc.