Organizational Structure General Framework
The article mentioned below is the composition of a brief explanation of what an is organization along with its characteristics. These characteristics define the basic requirement without which an organization cannot run. Several elements form the core of any organization be it big, small, public, private and they are explained well in the article which gives a comprehensive view about the core elements of the organization. Further, there are some factors as well which affect the organization in its functioning and are contemplated as very important factors.
Also,we have discussed the types of environments that prevail in the organization. The external environment includes threats and opportunities that are affecting the functioning as well as the performance of the employee. The internal environment is the environment that is taking place within the organization and how rapidly the employee is adapting to that change in the organization. Emphasis has been put on the various factors affecting the internal and the external environment in the organization. External factors include - general & industry environment and internal factors, on the other hand, include the culture of the organization, resources of the organization, goodwill of the firm, manager, and the board of directors Further, it has been discussed the organizational structure of Domino's which includes the hierarchy of the persons in the organization in the sequential order - president, chief financial officer, manager of the human resource and fast food. Later on the factors of contingencies such as size, technology, environment, and strategy of the organization and how it is applicable in the outlet of Dominos.
What Is The Organization?
The organization is the structural framework in which personnel along with some resources come together to achieve some desired goal. When the involvement of two or more people in achieving the desired goal is institutionalized then it is known as organization. The goal to be accomplished has to be decided to keep in mind that it should be largely in the interest of the organization and personal interest should be kept aside. In any organization, we require land, labor, capital, machinery, etc.
Laasch (2018), stated that a structure of an organization does not only include the machinery installed, rules and regulations, budgetary procedures but its components also include the informal environment in the organization i.e. the behavioral study of the employees, their interpersonal relations, social relations, number of breaks given to them, measures taken to motivate them, grievance redressal mechanisms. It is to be noted that these informal factors play a larger role in the success of any organization. Money alone cannot motivate the workers, one needs to have some social relation at the wok place as well. A human being performs well in an environment in which he is given some space to talk to someone, to laugh with their teammates, these measures help reduces the stress at the work and in turn enhances their efficiency. Hawthorne's study by Elton Mayo (the well-known behaviorist) had proved that a human being works better in an informal environment.
Characteristics Of The Organization -
1. Coordination of various activities
According to Lubis and Hanum (2020),Coordination is a prerequisite for the achievement of the desired goal. Without which the achievement of a goal is near to impossible.
2. Technology and its investment
Technology plays a very important role in bringing out the output from utilizing inputs. Investment in technology will provide you returns which will motivate the employees further.
3. Common goal
There has to be a common goal that defines why the organization was set up and what is its purpose for its existence.
4. Division of work
Without a proper division of work, efficiency and productivity will be hampered as there will be duplication of efforts.
Elements involved in the structure of an organization -
El Talla, et. al., (2018),There are six elements involved in the structure of any organization and they form the bedrock of the organization or we can say that they are the building block of the organization.
1. Designing jobs
The foremost stage involves the process where jobs are definedaccording to the predetermined goals and are assigned to an individual so that the person is aware of his or her responsibilities and the decision-making process accordingly. Designing jobs involves identifying the goals and their process means towards the achievement of ultimate goals, decision-making responsibility.
2. Departmentalization of jobs
It refers to the grouping up of jobs according to some rationality. It includes the formal structure of the organization. Departmentalization is done according to the task assigned to each group. It enhances flexibility, productivity and reduces the burden. Departmentalization is done based on Functional departmentalization, product departmentalization, Customer departmentalization, Matrix departmentalization, Departmentalization by the task force, process departmentalization.
3 . Establishing reporting relationships between jobs
This is the third building block of the organization. It composes the clarity of unity or the desired chain of command and span of control. The chain of command will define the line of authority which has to be followed by the employees and the span of control defines the number of people supervised by a person at a time. This is to ensure that the process is carried on smoothly without duplication of efforts with a well-defined hierarchy.
4. Distributing authority among jobs
It is another important element in the structuring of the organization. When the power is legitimized it is known as an authority. Thus, when authority is assigned to a person he has the power to make a decision at his discretion within his zone only and to ensure its proper execution to achieve the predetermined goals. For instance, a warehouse manager has the power to ascertain the quality of the product but he has no power on deciding the selling price of the product.
5. Coordinating activities among jobs
Coordination is an essential part of when two or more people come together in the same interest.Without coordination, it is almost impossible to achieve the predetermined goals. If each employee tends to perform a task without consulting other members then there will be duplication of efforts and reduction inefficiency.Coordination ensures enhanced efficiency,productivity in the process.
6. Differentiating among positions.
There is a differentiation in the position in the organization.These positions are divided into line and staff.A line position is responsible for the achievement of a predetermined goal and a staff position is responsible for assisting the line position and providing them technical assistance in any matter related to the organization.
Types of the organizational environment
Lubis and Hanum, (2020), There are broadly 2 kinds of environment that exist in any organization namely external and internal environment. Let's discuss these 2 kinds of organizational environments in detail.
External environment
It refers to the kind of environment which affects the threats and opportunities of the organization affecting the surrounding. This kind of environment has the following factors which should be taken into consideration:
Industry environment
It is one of the factors that influence the external environment of the organization. It affects the working of the individual in the organization and all the workers should be capable enough to adapt to the changes rapidly and cope up with them.
General environment
The usual environment in which the workers are willing to work effectively and efficiently. The organization should provide the workers healthy and hygienic environment so that they could not face any problems while working in the organization with their peers and group members.
Internal environment
It refers to the kind of environment which prevails within or inside the organization and it is easily controllable by the members of the organization. It consists of the following factors which should be considered:
Culture of the organization
The culture of the organization refers to how the persons inside the organization behave. It could the values, ethics, and beliefs to develop the perception and enhance the personality of the workers within the organization.
BOD ( board of directors)
Mangundjaya (2019), explains that it refers to the head of the organization where the persons used to work under the supervision of them and assist them at each step where they do mistakes. It could also be said that they are a group of individuals who are elected and represent themselves as shareholders. They play a major role in the overall efficiency of the firm. The public company are generally in need of appointing the board of directors
Owner of the organization
It could be defined as the person actually to whom the firm or the organization belongs. Monitoring all the activities taking place in the firm and look at the policies and guidelines. Which needs to be altered and followed by the co-workers of the organization.
Resources available in the organization
If we want that our organization will work properly the all the resources should be provided to the workers timely without having any much delay as it could stop the growth as well as the functioning of the organization. Using the updated technology will also improve the working efficiency of the workers resulting in the high profitability of the firm.
The reputation of the firm
The firm should try to maintain a good reputation with its members as well as outside the firm so that more and more persons could feel comfortable while working with the organization. The kind of individuals working with the organization also plays a major role in affecting the reputation of the firm. The workers should be able to complete their allotted work before the deadline gets over it will enhance the goodwill of the firm.