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The conventional organizational structure in businesses

Paper Type: Free Essay Subject: Business
Wordcount: 1682 words Published: 1st Jan 2015

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Organizational structure refers to the method that an organization arranges employee to increase the productivity and achieve the organization goals. It defines the task, responsibilities, work roles and relationship, and channel of communication. An organization structure can be plan in many different ways depend on the organization objective, the modes in operation and business types.

A proper organization is important to an organization. It will affect the effective of the management. The first point is work specialization. The employee will work accordingly to their specialization, they do not do different task in order to increase the company productivities. Besides, the organization structure is important to evaluating employee performance. Organization structure clear list out the responsible of the employee. So, the supervisors can more specific when evaluate their subordinates. It will help the organization give training to weaker employee.

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In addition it is important in achieving goals and objectives. Organizational structure allows for the chain of command. Leaders are in charge of delegating tasks and projects to subordinates so the department can achieve their goals. It also important in solve problem and implement new strategy. When problems occurred, the same level of management can meet and solve it together. Organization structure are depends on the organization activity, goals and scale.

2.0 Body

Event management refers to the process which an event is planned, prepared, and produced. Event management involves studying the intricacies of the brand, identifying the target audience, devising the event concept, planning the logistics and coordinating the technical aspects before actually executing the modalities of the proposed event. Post-event analysis and ensuring a return on investment have become significant drivers for the event industry.

The main business for the event management company establish by the writer is manage in Exhibitions, Expositions & Fairs. It is an event aims to bringing interested persons, buyers and sellers and in the certain industry. The event gathers the interested people together to view or sell the industry related products, services, and other resources to a specific industry and the public. There are a lot of exhibition conduct today such as Car shows, PC Fair, Mattress Fair, Education Fair and others. It can prove that the demand for exhibition is increase continuously. So, it is a business opportunity to the company although there are a lot of competitions and it is the reason why the company concentrates in this business.

The organization structure in company should have divide into several department to help the business running in good condition. There are four main functional departments in the company such as administration, operation, marketing and risk management. Administration department includes financial to control the company budget and pricing structure, human resources to employ and training the employee, information to collect database such as feedback and analysis, technology for communication and maintain the IT equipment, and time to schedule the time for the event. Operation department includes communication to communicate internal and external of the company, infrastructure to make sure the basic facility for every event conduct, logistic to install and move the facility to other function, program design to carry out SWOT analysis and design according to people wants, site manager to make decision and control in certain area.

Marketing department includes marketing plan to do research and strategic marketing, materials management to find out cheapest and quality material, sales management to sale the booth and ticket, public relation management to build up relationship with public, and sponsorship to get sponsor from other organization. Risk management includes compliance management to get the licensing and permit, emergency management to plan emergency action plan and provide medical services, health and safety management to make sure the safety in the event, insurance management to reduce the risk faced, and security management to make sure the participant and property are safety.

There are four common structures in organization structure for business. It consist of Entrepreneurial Structure, Functional Structure, Divisional Structure and Matrix structure. Entrepreneurial structure is totally centralized, it refers to chief executive retain control in the organization. This structure has clearly defined lines of authority for all levels of management and has a highly bureaucratic procedure. This structure is lack standardization of task. It is most common in smaller organization and used to solve simple task. Functional structure is also a centralized structure, it refers to the activities of the organization divides into different functional area, and each functional area has different management structure. The employee in this structure tends to perform a specialized set of task. It’s leads to operational efficiencies but it also leads to lack of communication between functional groups and making the organization inflexible. Functional structure is suitable use in organization that with different functional team or produces standardized goods and services at large volume and low cost.

Divisional structure refers to group the functional into different division by product, service or demographical area. Each division structure has its own functional team. The division managers are responsible in decision making for day-to-day operation. This structure suitable for the organization with different product, different industry and operate in different demographic area. Matrix structure is decentralized structure, it refers to group employee by both function and product. It is a complex structure which involves multiple lines of authority, rather than hierarchal lines of command. In this structure, employees have to report more than one boss. This structure normally use in organization with different production line.

It should be use functional structure in the Event Management Company for better controls the management of the company. The company is new established and divides into different functional area. It is suitable using functional structure in a small company with different functional area. It also works best in relatively stable environments that allow organizations to pursue consistent strategies. Besides, this structure can also give the employee a clear picture about their responsible, task, and supervisor. This structure can also maximize the functional performance by grouping the same interest or talent in same department.

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The advantage of using functional structure are skill development, clear in chain of command, focus objectives to increase efficiency, clear career path and minimize duplicate. Skill development because functional structure groups the people with certain skills and experience in the same functional area together. This help them to improve with exchange their opinion and share their experience with each others. Clear in chain of command refers to the hierachy show a clear picture about the authority. It is important to a company because it creates standard operating procedures.Focus objective to increase efficiency refers to the employee only focus on task in their specialist area. So, it can increase the efficiency to the company.

Besides, funtional structure given their employee a clear career path. The reason is the company have separate the functional department, the employee will know what is their job, what responsibility and what department they are. So, it will give a clear career path to the employee. In addition, it will minimize the duplicate work. It refers to the people do their specialize, they will not do others task. So, it will minimize the duplicate in work.

The disadvantage are includes employee might become isolated, poor communication among the department, problems are push around and minimize the career development opportunities. Employee might become isolated because every thing in this structure are specialize, so it will cause the employee only do their specialize job and do not care about others problem. Poor communication among the department because each department have their own management structure and specialize. It will cause decrease in communicate with other department.

Besides, problem are push around because there is different department. The employee might focus on their own performance. When problem occurs, they are try to push around but not to solve it. In addition, minimize the career development opportunities because the employee in the company only do specialize task, so they lack of chances to learn others knowledge from others to develop their career.

3.0 Conclusion

Although there are advantage and disadvantage in functional structure, this is the best to using in event management company. It is suitable for a small and new establish business because it is easy to control and functional area can increase the productivity of the company. It also help the company minimize in duplicate work to decrease the wastage.

There are some disadvantage to overcome. The first is employee mightbe isolated and poor communication among the department. To solve this two problem, company can having gathering once a month. Besides, the company also can have a meeting with all the department to increase their communication and improve the idea. Problem are push around can minimize by not only care about personal performance but group performance. This will help the team to work together to solve the problem, not only push around the problem. The minimize in career development opportunities can solve by having training in different area for their employee and change their department after a period of time to increase the knowledge.



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