Alternative Structures That Business Can Apply Commerce Essay

Published: 2021-06-24 14:30:04
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A business organization is a profitable firm that moves towards its vision through missions. In this process, a group of employees works under a management in order to their designation in the org. So there should be a structure necessary to the management to handle the employees efficiently and effectively. The business structure is what a framework that arranged the employees in various levels according to their designation in an organization. A business structure should have some elements itself that make the structure efficiently and effectively. Departmentalization, Unity of command, chain of command, centralization or decentralization, formalizations and span of control, work specialization are the elements that make an organizational structure. However, these elements have an impact in the business structure. The departmentalization is one of the most important elements that can be determining the other elements for an organizational structure. This element divided the jobs under some departments which is created according to the function of the business or product what they are producing or their geographical business locations or their customers’ needs…
However, there is some business structures defined for the help of the business organizations. These structures will help to make the organizational hierarchy for the businesses. The business structures will organize the authority, chain of command and the way of management of the business organizations. Usually functional, product, customer, geographical, process and matrix structures are adopted by the business organizations. There may be the chances to select more than one structure at the same time as well. This part of the assignment will refer the functional, geographical and product structures which for the possible alternative structure for my business.
The functional structure is a most common structure for all businesses. Whether the organizations have adopted any other structures, the functional structure will be fulfilling the organizational structures. In this structure, the business will have divided according to the functions they have doing in the organization. These functional areas called as departments in the firm. Marketing, production, accounting, human resource and sales are the most common departments in an organization. These all departments have a manger and other employees such as middle level managers, supervisor and other operatives who are working under the manager.
For example a marketing department structure can be designed as in the picture
The functional structure will allow the employees specialization in their particular works. Because of this structure, the level, authority and responsibilities are clearly defined. As well as, the workers get the chance to work with the colleagues who have the same abilities and professional and it can create an enjoyable environment in work.
However, the disability of a broad overview on the organization for the each department can be a disadvantage in this structure. As well as, the delay in the final decision making because of the top level authorities located in the top of the structure, the co-ordination between the departments are less and generate the future manager with a narrower experience because of the careers of the employees are defined in the structure also some other disadvantage of the functional structure…
On the other hand, the product structure designed the organizational structure according to the product the company produced. The organizations which have multiple or different products will select the product structure. UNILEVER is a perfect example for the production structure. Here also every product areas have a chief or manager and under him others will work according to their levels in the structure. In the product structure, each of the manufacturing areas will have their own functional departments as we already discussed in the above paragraph. This structure makes easier to manage the working process in each production areas because of there is no interference from the other production areas. The manager of the product structure can able to cover the all divisions efficiently because they have the broader view on their production division. As well as, the decisions making is faster in this structure than the functional structure.
This is a simple example for the Product structure…..
The multinational companies which are covers all over the world by their products can get the advantages of the geographical structure. Because marketing the same product in America and Asia may have several different to do so. So according to the geographical position of the business it has to be changed to do the business there. In the lager organizations, having a centralized authority is really difficult to move towards the market. So these kinds of businesses divide their business activities into regions and promote their business from that level. It is helps to understand the real time situation of the market. In this structure, every regional manager will be the chief for the activities of the business. In the geographical structure, under the regional managers the production or functional structure will be follow the all other activities in the organization as we already discussed…. For the biggest business organization this is a better way to do the business. Because when it divided into the regional then it will easy to reduce the costs in the production. As well as, to create the good market in the region the organization has to consider the current situation of the area. So it is easy for the multinational organizations when they have a geographical structure.
Example for the geographical structure…
On the other hand, the organizational cultures also will have an important place in organizations structure. Organizational culture explains the way of the psychology, attitudes, set of beliefs, norm, beliefs and personal and cultural values of an organization. Simply you can say that the organizational culture is the way of doing things around the organizational. Charles Handy is one of the writers who described the four main types of organizational culture in his book "Gods of Management".
Handy define the four cultural types that can be followed by the organization according to the structure which they have. Task culture, person culture, power culture and role culture are the four types of the Handy’s organizational cultures.
When an organization adopt the functional structure, the role culture will suitable for their business operations. In the role culture, the employees are given jobs according to the function of the organization. Their role in the organization well defined and employees can focus on their particular job according to the job description, procedures, rules and systems. In this culture, work specialization is one of the benefits for the organization. This culture most suitable for the government departments, local authorities, public utilities and the public sector in general. Those kind of cultural organizations will face the problems when the environment changes. Because of the role cultural organizations are having advantages with the steady business environments.
On the other hand, entrepreneurial structural organizations mostly have the power culture which is considering control as a key element. It is usually for the small size orgs. The one or more than one persons who own the organizations are in the position to take decision about the all operations. These fully centralized types of business have the advantage that they can react quickly at the times of crisis. But the employees of these orgs may de-motivate when their considerations ignored. As well as, lack of consultation may affect the business activities and the future of the business.
The matrix structure is a hybrid business structure that designs the structure of the project groups which are more than one department or organizations joined for working together. Handy describes the task culture for the matrix structure which has the cross-functional structure. Nowadays most of the business organizations have established the project groups for the particular tasks. This has become as a modern business strategy to complete a specific task in a time period. The task culture put the people in a group according to their specialization, up-to-date information and skills in the job. In this culture, there is a close association between the departments to complete the task. These organizations have the flexibility to adopt the business environmental changes quickly. And the employees who are in the task culture usually motivated because they are having authorities and responsibilities in the group. NASA is one of the examples for the task culture. They have put the people together in their missions.
Organizations are considering about their culture in recent years. Because of cultures are having the values and attitudes of an organizations. The organization structure decides the culture of the organization. These two factors have decided the organizational activities efficiently and effectively.
Mehroo, H, (2010) HND Organizational structure AND culture (Lecture Notes) Organizations and Behaviour, LSST (08.12.2010) (08.12.2010)
1.2 The Final Structure and the Type of Culture I Expect In My Organization…
The world may drink more than a billion cups of tea a day but having a brand name on the tea products is a long term process to archive. NYSA Ceylon Tea Ltd is an organization that produces and exports the Sri Lankan tea to the world market. NYSA Ceylon Tea Ltd has always been as the world’s best & biggest tea producers, since it enter into the world market. NYSA gives quality tea products to all around the world from the verdant highlands of Sri Lanka. Having a top world brand name on their products is the basic motivation to open the NYSA T-Bars around the world…
According to the demand of the NYSA tea products, now NYSA Ceylon tea Ltd has their NYSA T-Bars in more than 17 countries. Each country’s NYSA T-Bars are working as organization in that country. They have their own structure and culture according to the market situations. United Kingdom is one of the huge international markets for the NYSA Ltd. Currently NYSA has 9 T-Bars in London, UK and in the progress of increasing the number of their T-Bars in the other part of the nations as well. In this assignment, I’m going to consider the NYSA T-Bars, UK Ltd as my organization and following all parts of the assignment will consider only about the NYSA T-Bars, UK Ltd.
The NYSA international T-Bars, UK Ltd is a growing business in the UK market. In the 2nd half of their 1st year, NYSA has 9 T-Bars in London where they started with 3. Under the NYSA international marketing group, the C.E.O of NYSA UK Ltd has the all authorities to run the business activities in the market. According to the type of business and the location, NYSA UK Ltd has the functional structure to run the business activities under the geographical structure of the mother organization, the NYSA Ceylon Tea Ltd. Under the top level management, the structure divided in to some departments such as marketing, accounting, Human Resource, sales and procurement. The each T-Bars management is defined under the sales department. This functional structural design is giving a proper order of command between top and bottom level people in the business.
As a growing business, the culture of the business is most important fact to improve the spirits of the business. The people of the NYSA UK have to be motivated. They should have shown a real interest to improve the business through the competitive market. As I wrote in the previous part (1.1), the organizational culture is the factor that related to the way of the psychology, attitudes, set of beliefs, norm, beliefs and personal and cultural values of an organization. Our culture should have to give a boost in our business and the people, as well as, it has to be suitable for our structure according to the Handy’s methods. According to all above considerations has decided the role culture as our culture. This is a usual culture for most of the large organization nowadays. Divide the various functions and everyone assigned to a particular role in the structure is the theme of the role culture. Because of this particular role dividing, work specialization is the main advantage of this culture.
The full structure of the NYSA T-Bars UK LIMITED is given under the NYSA CEYLON TEA LIMITED.
NYSA T-Bars, UK Limited
Organizational structure
Description of the Structure
Under the management of the NYSA CEYLON TEA LIMITED, the NYSA International T-bars sector controls the all NYSA T-Bars in the world. Each country T-Bars are control by the each countries C.E.O of the NYSA T-Bars Ltd. These countries C.E.O s have to report their Regional Directors while these regional directors have to report the Regional Coordinator. The Regional Coordinator is governing the NYSA International T-Bars along with Finance Director, Marketing Director and Procurement Director under the Command of Managing Director of the NYSA International T-Bars limited.
The NYSA T-Bars UK is fully managing by its C.E.O. The Managing Director of the NYSA T-Bars, UK has to report to the Chief Executive Office of the NYSA T-Bars, UK while he has to control the main five departments. The Marketing, Finance, Human Resource, Procurement and Sale departments have their own directors under the Managing Director of NYSA T-Bars, UK. The Marketing Director has the responsibilities to look after the advertising, research & development and customer service units. Accounting and employees payment units are working under the Financial Director of NYSA T-Bars, UK. The Human Resource Director directs the administration, employee’s relation and welfare and employees training and education sections. The Employees payroll unit have to report the Administrator while it has report to the Financial Director as well. All draw materials for the each T-Bar are supplied by the Procurement management. The purchasing, quality control and warehouse management units also work under the Procurement management.
The nine NYSA T-Bars located in London selected areas are mange by the Sales Director. Each T-Bar has a T-Bars Manager and Assistant Manager. The dining area supervisor, kitchen area supervisor and Food & Environmental Hygienic supervisor are working under the Assistant Manager of the T-Bar. Waiters and cashiers have to follow the orders of the Dining area supervisor while t-makers and snack and food makers have to follow the Kitchen Supervisor. Food & Environmental Hygienic supervisor have the responsibilities of the t-bars health and safety conditions. According to the development progress of the T-Bars, there is a T-Bars sales development officer working for each T-Bar under the Research and Development unit and each T-Bars manager. This job offered to increase the sales and number of the t-Bars in UK. The T-Bars sales development officer is researching the ways of increasing sales for each T-Bar according to the situation of the T-Bar.
As a growing business in the region, NYSA T-Bars Ltd has to be moderate with the time being to get the hard work from their employees. So encouraging employees is one of the most important facts for the business. The NYSA T-Bars Ltd has a number of facts that to encourage the employees in a positive way to support the business. These facts can be divided in to some areas such as language, education, ceremonials, physical layouts, mottoes and symbols…
The NYSA T-Bars Ltd does not have employees, thus, we have ‘our people’
We don’t have coffee shop, we are T-Bar...and Our T-Bars managers are called T-Bar Manger rather than Branch Manager…
Education and Training…
As we understand the important of our people skills & talents related to the work have a most important place in the business. This is the main reason for the Training & Education unit under the Human Resource department.
As an international business, our peoples are from multinational countries. So to improve their communication skills with the customers, we are providing courses in their training period.
We have a day in a year to make a trip to somewhere with all our peoples together… all of our 278 peoples are enjoying the teams games, trips, programmes and their food together…
When a new group of peoples getting ready to work from their training, there will be a function that ask them to become as our people from trainee.
Physical Layouts
Our T-Bars has designed with modern technology and real passionate architecture…
Our people’s outfits are designed with their desire and it is changing with the new passion…
NYSA... The Matter of Real Taste……
Our symbol is designed with a picture of the tea estates of Sri Lanka. This is because every cup of NYSA teas and coffees has to remember the origin and the people who make it.

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