Functional and Divisional Concepts

Organising is a process that involves coordinating human activities, gathering resources, and integrating them into a coherent whole that can be used to achieve certain goals. Organising is a process that starts the execution of plans by defining tasks and working relationships and effectively deploying resources to achieve certain outcomes (goals). An organisation structure chart is a diagram that depicts the structure of a company. It shows who reports to whom and indicates authority ties between various roles. The organisational structure is created to help businesses achieve their goals. Manufacturing and assembly, for example, would be the most prominent element on an organisation structure chart if they were in the production line.

Steps in the organising process

Organising entails a set of actions that must be completed to attain the intended result. Let’s see how organising is done with the help of an example. Assume that twelve pupils work in the school library during the summer holidays. They are given the task of unloading a cargo of new releases, stocking the shelves, and then disposing of all garbage (packing, paper, etc.) one afternoon. It will cause widespread chaos if all pupils opt to do it their way. The following phases in the organising process derive from the previous description:

1. Work identification and division: The first stage in the organising process is to identify and divide the work that needs to be done according to previously established plans. The task is separated into manageable activities to minimise duplication and distribute labour strain among the personnel.

2. Departmentalization: Similar tasks are grouped once work has been broken down into tiny, manageable chunks. Specialisation is made easier using these sets.

3 Assignment of responsibilities: It is required to define the tasks of various job roles and assign work to the appropriate people. After departments have been established, each one is assigned to a certain person. The personnel of each department are then assigned jobs based on their abilities and competencies. A suitable fit between work and an individual’s skill is critical for efficient performance. The job should be given to the most suited people to complete it.

4. Setting up authority and reporting lines: Simply distributing tasks isn’t enough. Each individual should also know whom he must obey and whom he is answerable. The construction of such explicit linkages aids in creating a hierarchical structure and aids in departmental cooperation.

The Importance of Organising

The organisation’s performance can pave the way for a smooth business transition with the changing business environment. The importance of the organising function stems primarily from the fact that it aids in an enterprise’s survival and growth and its ability to handle various obstacles. The organising function must be correctly executed for any company firm to complete duties and fulfil goals. 

1. The clarity in working connections: Establishing working relationships simplifies communication lines and outlines who is responsible for what. This eliminates the ambiguity in the transmission of data and commands. It aids in forming a hierarchical structure, allowing for the assignment of responsibilities and the definition of the scope of power to be exerted by a person.

2. Effective management: Organising clearly explains tasks and their responsibilities. This eliminates ambiguity and redundancy. The clarity in working connections allows for good task performance. The management of a business gets easier, and administration becomes more effective.

3. Personnel development: Organising encourages managers to be more creative. Managers can lessen their burden by delegating ordinary tasks to their employees effectively. Delegation reduces the burden not just because of an individual’s limited ability but also because it allows the management to create new methods and ways of accomplishing duties. It allows them time to look for new opportunities for growth and the chance to innovate, bolstering its competitive position.

Types of Organisational Structures 

The nature and types of activities conducted by an organisation will determine the structure selected by that organisation. The following are the two categories in which the organisational structure may be classified:

1. Functional structure

2. Divisional structure 

1. Functional structure: In a functional structure, activities are organised, and departments are formed based on the tasks to be completed. Activities connected to a function are organised into a single unit to provide the entire group with a clear direction. For example, in an industrial firm, main tasks such as manufacturing, finance, marketing, and staff may be divided into several departments.

Functional structure suitability: The functional organisation is well suited to a company that produces and distributes a single product or a small number of items. It comes in handy when specialisation is required to execute multiple duties like manufacturing, finance, marketing, etc. The functional organisation, on the other hand, the functional organisation structure may be insufficient when dealing with a huge number of items.

2. Divisional structure: In Divisional structure, the activities are organised by forming groups for each product or market or location or service rather than based upon their expertise. Many major organisations with diverse operations have restructured themselves from a more basic functional structure to a better divisional structure suited to their activities. This is especially true for businesses that provide more than one product category. This is because, while every organisation performs a set of homogeneous functions, as it expands into other product categories, the necessity for a more advanced structural design to deal with the resulting complexity becomes apparent.

Each division in a divisional system organisation is semi-autonomous, with resources and facilities. Each division is given its divisional manager, who has ultimate responsibility and is accountable for its success. Furthermore, each division is multi-functional, meaning that activities such as manufacturing, marketing, finance, and people are conducted inside each division to ensure its efficient operation. However, depending on the product line, functions may differ amongst divisions.

Conclusion 

A functional organisational structure includes operations such as coordination, supervision, and job assignment, all of which are organised into departments according to their functions. The main advantages of the functional organisational structure are simplicity, ease of administration, and efficiency. Meanwhile, problems exist, with one of the most significant being departments’ inclination to operate in silos, pursuing departmental goals at the expense of the organisation’s overall structure. Despite the disadvantages, implementing a coordinated effort and cross-functional teams is a critical cure. The use of ad hoc or standing committees will go a long way toward boosting communication in functional outfits.