Orgstructures (2)
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This document discusses different ways that businesses can structure their organizations. It describes organizing by function, product/activity, area, customer, and process. For each structure, it provides examples and lists the potential advantages and disadvantages. Functional structures group departments by specialized tasks, while product structures group them by product lines. Area structures divide the business geographically. The document aims to explain the pros and cons of different organizational structures.
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Orgstructures (2)
- 1. http://www.bized.co.uk Organisational Structures BTEC Business Copyright 2006 Biz/ed
- 2. http://www.bized.co.uk Why Have a Structure? All businesses have to organise what they do A clear structure makes it easier to see which part of the business does what There are many ways to structure a business Copyright 2006 Biz/ed
- 3. http://www.bized.co.uk Some Key Terms Flat or tall structure Span of control Chain of command Hierarchy Delegation Empowerment Copyright 2006 Biz/ed
- 4. http://www.bized.co.uk Ways to Structure a Business By function: arranging the business according to what each section or department does By product or activity: organising according to the different products made By area: geographical or regional structure Copyright 2006 Biz/ed
- 5. http://www.bized.co.uk Ways to Structure a Business By customer: where different customer groups have different needs By process: where products have to go through stages as they are made What are the advantages/disadvantages of different types of business structure? Copyright 2006 Biz/ed
- 6. http://www.bized.co.uk Pros and Cons of Different Structures This depends on the business type, size and structure used Lets look at a functional structure: Chief Executive Board of Directors Production Marketing Accounts Personnel IT Copyright 2006 Biz/ed
- 7. http://www.bized.co.uk Functional Structure Advantages Disadvantages Specialisation each Closed department focuses communication on its own work could lead to lack of focus Accountability Departments can someone is become resistant responsible for the to change section Coordination Clarity know your may take too long and others roles Gap between top and bottom Copyright 2006 Biz/ed
- 8. http://www.bized.co.uk An Example of Organisation by Product/Activity Hewlett Packard Imaging and Personal Enterprise HP Financial HP Services Printing Group Systems Group Systems Group Services Copyright 2006 Biz/ed
- 9. http://www.bized.co.uk Organisation by Product/Activity Advantages Disadvantages Clear focus on Duplication of market segment functions (e.g. helps meet different sales force customers needs for each division) Positive competition between divisions Negative effects of Better control as competition each division can act Lack of central as separate profit control over each centre separate division Copyright 2006 Biz/ed
- 10. http://www.bized.co.uk Organisation by Area Hewlett-Packards Headquarters Worldwide Hewlett Packard Americas Europe, Middle East, Africa Asia Pacific Houston, Texas Geneva, Switzerland Hong Kong Copyright 2006 Biz/ed
- 11. http://www.bized.co.uk Organisation by Area Advantages Disadvantages Serve local needs Conflict between better local and central Positive competition management More effective Duplication of communication resources and between firm and functions local customers Copyright 2006 Biz/ed
- 12. http://www.bized.co.uk Other Organisational Structures By Customer: Similar effects to structuring by product By Process: Similar to structuring by function Copyright 2006 Biz/ed
- 13. http://www.bized.co.uk Organisational Structures Now go to the Activity for more Copyright 2006 Biz/ed