CONTENTS SIGNIFICANCE OF ORGANIZING CASE STUDY FUNCTIONAL ORGANIZATIONAL STRUCTURE
ORGANIZING: Organizing is one of the major functions of management. In layman terms, one can look at organizing as an activity to eliminate chaos and introduce a systematic functioning in the enterprise . But by definition, organizing helps in establishing authorities, dividing workloads, assigning responsibilities, grouping tasks and allocating resources in an organization .
SIGNIFICANCE OF ORGANISING Specialization of Jobs Division of work into units and departments promotes specialization in activities. Well-Defined Jobs Organizational structure ensures suitable placement of individuals based on qualifications, skills, and experience. Clearly defines roles and responsibilities, enhancing clarity. Authority Clarification Clarifies authority positions for managers, preventing misuse of power. Enhances efficiency and productivity through well-defined roles. Proper Coordination Ensures all tasks contribute to the enterprise's objectives. Promotes seamless workflow and timely task completion across departments.
SIGNIFICANCE OF ORGANISING Effective Administration Identifies organizational structure to minimize duplication and resource wastage. Clarifies roles and responsibilities, promoting efficiency in administration. Promotion of Growth and Diversification Supports business growth by enhancing operational efficiency. Facilitates product diversification and expansion into new business lines . Job Security Development Defines job positions and roles, fostering coordination and job satisfaction. Enhances employee satisfaction and a sense of security . Facilitation of Change Provides structure for independent decision-making and innovation. Encourages adoption of new techniques and processes in production.
CASE STUDY:
APPLE Steve Jobs and Steve Wozniak founded Apple Computer, Inc. back in April 1976. Today, the company is known as one of the most successful companies in history and offers a huge range of consumer electronics, computers, servers, software and distributes multi-media content, too . Steve Jobs unveiled the first Apple iPhone in 2007. The iPhone stepped ahead of the competition with its revolutionary touchscreen; a world apart from the QWERTY keyboards of the era. Since 2007, Apple has sold more than 500 million iPhones Apple uses a company structure that is commonly known as “functional organization”. This means that the company has been organized around areas of expertise, rather than individual products. The products themselves are then worked on by individuals from across the different areas of expertise.
FUNCTIONAL STRUCTURE The management and direction of subordinates are organized based on the specific types of work involved. Activities within an organization are grouped into functional areas such as production, marketing, finance, and personnel. Each functional area is overseen by a specialist who excels in that particular domain, ensuring optimal performance. If an individual is responsible for multiple functions, they are accountable to the respective specialists overseeing those areas. This organizational approach ensures efficiency, specialization, and clear lines of responsibility within the organization.
FUNCTIONAL ORGANIZATIONAL STRUCTURE MERITS Scope for high specialization As tasks are handled by experts, therefore the quality of work and efficiency increases. Better Supervision Flexibility in work Area of work is narrow and key persons are not overloaded. DEMERITS Delay in decision making Lack of Coordination Difficulty in Fixing Responsibility Maintaining discipline is difficult Coordination among foreman is difficult