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Contents1.0 Introduction2.0 Findings2.1 Current Organizational Structure2.1.1 the Characteristic of Hierarchical Structures2.1.2 Span of Control2.1.3 Departmentalization2.1.4 Communication Patterns2.1.5 the Chain of Command2.2 Future Organizational Structure2.2.1 the Characteristic of Hierarchical Structures2.2.2 Span of Control2.2.3 Departmentalization2.2.4 Communication Patterns2.2.5 Chain of Demand 2.3 Contingency Approach that help determine the Future structure 2.3.1 Task 2.3.2 Technology 2.3.4 Size2.4 Relationships2.4.1 Line Relationship2.4.2 Functional Relationship2.4.3 Staff Relationship 2.4.4 Lateral Relationship 2.5 Authority, Responsibility and Delegation3.0 Conclusion4.0 Reference1.0 IntroductionThis report has mainly analysis the Tasty Company, which is a food company. According to the contingency approach, there is a need to re-structures the internal structure. It is also to identify the line, staff, functional and lateral relationships. In the report, I will explain the current and recommended structure of the company, and the authority, responsibility and delegation to line management relationships in the proposed structure.2.0 Findings2.1 Current Organizational Structure 2.1.1 the Characteristic of Hierarchical StructuresThis is the kind of structure that has a very specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line. This kind of structure is suitable for the beginning of the Tasty Company.This is the sort of structure that allows for easy decision-making and is also very informal in nature. They have fewer departments, which makes the entire organization become decentralized one so the authority and responsibility could be defined clearly Tasty Company with this structure can be bureaucratic and respond slowly to change the customer needs and the market within which the organisation operates. Communication across various sections can be poor especially horizontal communication. Departments can make decisions which benefit them rather than the business as a whole especially if there is Inter-departmental rivalry2.1.2 Span of ControlSpan of control is simply the number of subordinates that an executive supervises. The number of employees that a manager can manage must be determined by every organization. Wide spans have the advantage of supervisors having to delegate and ensure clear policies are laid down. As for Tasty Company, the span of control of the firm is narrow, a president control five managers. Usually, managers are easily to delegate and make sure policies are carried out.The high cost due to the numerous levels, supervisors may get too involved in the work of subordinates and undue delay may be caused. The possible loss of control by the supervisors and the need for high-quality managers as their workload tends to be so high that bottlenecks may occur. 2.1.3 DepartmentalizationThe assignment of jobs to departments is called departmentalization, and it represents one of the core aspects of the horizontal division of labour. The methods of departmentation include Functional, product, matrix, geographic, customer and hybrid. And the definition of function departmentation is that employees with closely related skills and responsibilities are assigned to the same department.This method is easy and logical to measure and evaluate the employees performance and decide usually efficiency and effective. Second, it can enhance the communication between managers and employees and enhance the career ladders and training opportunities. It follows the principle of specialisation, and economies result by having similar tasks grouped under one area.Functions may not be so important as the area covered by Tasty may be widespread and another grouping may be better.Such specialisation may invoke narrowness of outlook. And there may be conflicts between local functional goals and the needs of the whole organisation. A classic example is conflicts between operations staff and marketing staff where operations might want to standardise to get efficiency and marketing might want more variety to meet what they believe are customers need.Management positions need people of wide experience and this is not readily available in a rigid functional departmentation system that affords poor training grounds.2.1.4 Communication PatternsTasty company has numerous communication patterns. Generally, a normal company has six types of patterns for communication including line relationships, functional relationships, staff relationships, lateral relationships, matrix structure and hybrid structures. From the current organizational structure of Tasty, it is easy to find that they apply the line relationships, A president control five vice general managers, and each manager can not manages other managers because they are in a same level, and they plays the same roles of subordinate for the general manager. 2.1.5 the Chain of CommandIt is a typical pyramid shape. Generally speaking, the enterprise must take the focus of attention from supply transferred to the consumer demand. The concept of demand chain for channel members are facing a severe task: enable provide customers more value than supply chain. The main characteristics of the demand chain are demand enter into supply chain, power transfer, demand as the core and the alliance formation of real value. In addition, the flow contents of the chain of demand include demand, resource, information, knowledge and cooperation relationship. The core of demand chain management is the collection, transmission of demand. As for Tasty Company, the chain of demand is extremely significant, in order to stablish the demand chain, the company should push attention to more ceramic collectors and wealthy, and attracts them buy our food. Also the firm should ensure demand chain can solve the needs of market, sales and service in the value chain.2.2 Future Organizational Structure2.2.1 the Characteristic of Hierarchical StructuresTo solve the problems of current organizational structure which is too simple and leads that each manager doesnt recognize their task, thus Tasty Company may have confusions without appropriate hierarchy. After expanding the organizational structure, therere five levels of management. First, the president actions as the biggest controller, they take up the highest location of the company, and he counterbalances the power with every department. Therefore, President controls the general manager and it should work for himself. Then, every manager manage some departments or factories, and each department have closely contact with other departments, and they are controlled by their each manager. 2.2.2 Span of ControlSpan of control is too narrow as for these managers, nothing have controlled by them. As the result, some departments should be formatted while the organizational structure is expanding. Every manager controls four or more departments, that is to say, the span of control become much wider than the former structure. The president also actions as the biggest controller, he has widest span of control. Last but not least, in the future organizational structure of Tasty, many supervisor has appeared, and it ensure the span of control in the president which can not too wide to influence the operation of the firm, they make the span of control maintain a suitable quantity.2.2.3 DepartmentalizationIt is easy to find that the departmentalization is not obvious of the current organizational structure, and these managers can not consist a effective organization. Therefore, after extending the organizational structure, the company realizes departmentalization. The future organizational structure is matrix structure. Departments are working for four or more their own task. The organization will be more efficiency and the communication between departments and managers definitely are enhanced, the managerial performance also will improve a lot.2.2.4 Communication PatternsThere is no doubt that in the previous organizational structure, the communication pattern is too simple because line relationships actions the main communication pattern in Tasty management. As the result, there is a big change after the organizational structure changing. The future structure changes into matrix structure therefore the function of each department is able to develop easily. And manager can make command become more centralized, the degree of task completion enable maximized. Additionally, there are several department for marketing which was managed independently by one general manager which indicates that the matrix structure was very useful in the future organizational structure of Tasty.2.2.5 the Chain of CommandAs for previous organizational structure, the chain of demand is narrow which is not good for companys operation, and there are fewer managers. So in the future organizational structure, more department managers should be showed up, and that cause demand chain become more and more luxuriant. These managers can control the chain of demand forcefully. For example, Marketing Department can make the demand chain stronger, and it can control more departments to meet the common goals. Last, the chain of command would make Tasty Company work more efficiently. 2.3 Contingency Approach that help determine the Future structure2.3.1 TaskThe situational variables may include task, technology and size, which will determine the systems and structures determined. The nature and size of the task is a key determinant in shaping the organization. To accomplish the targets that provide better service to the customers after they purchased the products, and achieve the good effect of brand, Tasty Company can increase the After Service in the Line Executive. After having completed the task, the company can promote standardized and efficient services. The technology the organization uses is a key factor in its success. This is in relation not just to information technology but the complete approach to producing an item or delivering a service. 2.3.2 TechnologyIn the process of the social and economic development, the company has no choice but to develop new technologies constantly, thus it is a need to increase the Sales Managers who can help the company to research and develop the technology and also overall charge the departments of design and techniques. This change can make the company highly formalized, and has a great deal of specialization and division of labor, and high centralization of decision-making. The size of the organization is a key variable in influencing the design and structure of the organization, with small organizations typically having few procedures which typically will have many written procedures, organization charts and formal processes.2.3.3 Size If the company is attempting to employ a growth task by entering into global markets, it will need a structure that is flexible, fluid and readily adaptable to the environment. Therefore, Tasty Company should expand the scale. Thus, it is necessary for the company to increase the quality assurance manager which takes responsibility for the material, production, and equipment. With the size increased, the capacity, number of personnel, outputs includes customers and sales, resources are also increased. The organizational structures tend to be higher customization, specialization and differentiation. However, increasing size is also related to increase structuring of organizations activities but decreased concentration of power. 2.4 Relationships2.4.1 Line RelationshipThis is the kind of structure that has a very specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line, hence the name line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. l the Advantages of Line RelationshipThis relationship has the advantages of simple structure, would arise low management cost. The command is unified and under this structure departments could make decisions rapidly. The responsibility and subordinate relationship are also very clear, flexible. Its easy to maintain the discipline and order. the Disadvantages of Line RelationshipUnder this structure, it may cause some various contradictions and incongruities. To the production department and running of enterprise, it will cause some bad effects. And it is not conducive to develop comprehensive management talents.2.4.2 Functional RelationshipThis kind of organizational structure classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization. Wherever the functional specialist supports or has authority over certain activities of a particular department there is said to be a Functional relationship.l the Advantages of Functional RelationshipThis structure will make the most of the experts talent and give the lower level work specific guidance so as to make up for the inadequacy of ability of administrative leadership and management.l the Disadvantages of Functional RelationshipThis structure is easy to form multiple leadership and results in lower employee do not know what course to they should take.2.4.3Staff Relationship It may be between the administrative support staff and the different teams. And it describes the relationship between the assistants of senior staff and other staff. The assistant may not have direct authority, however, but act as a representative of the senior manager they work for. l the Advantages of Staff RelationshipUnder this relationship, responsibility is clear, every departments are aware to what they should do work, the manager could centralize and unify the employee and command. A variety of experts can play an significant business management role. The stability of organization is higher, when external environment changes small , its easy to develop an organizing group efficiency.l the Disadvantages of Staff RelationshipSome every department becomes a system. And in this structure some departments may dont pay attention to information lateral communication, which will cause repeated easily and low efficiency. If the departments are delegated with excessive power, its harmful to this structure. Some departments are lack of flexibility and lags on response to environmental changes. Also, this structure may increase the management cost2.4.4 Lateral RelationshipIn management, it is a link between two employees of the same organization who are at the same level of authority. They may not have the same job title or description, but they report to either the same person or to people who are of equal standing in the companys chain of command. The term describes the side by side relationship that two employees may have in the hierarchical structure of a business. l the Advantages of Lateral RelationshipIn this situation, it can shorten the distance between managers and employees. The speed of information circulating longitudinally is fast so there will be less distortional information. And the employees are more active and autonomy and satisfaction. Its better for leaders to understand employees situation. Supervisors and employees can form a larger collective, which is beneficial to solve more complex problems.l the Disadvantages of Lateral RelationshipBecause the management range is wide, the decentralization of power, its difficult to implement the strict control. The managements are difficult to carry out thorough and specific management. When supervisors and employees form a larger collective, with the expansion of collectives scale, the coordination and consensus becomes more difficult. 2.5 Authority, Responsibility and DelegationAuthority is the right to direct or guide the actions of others and extract from them responses that are appropriate to achieving the goals of the organization.Responsibility is the obligation placed on a person who has a certain position in an organization to perform a task, assignment or function.Delegation is the act of passing the responsibility to complete a task to another person.l The Authority, Responsibility, Delegation of the Sales ManagerThe sales manager in the Tasty Company should take responsible for the sales activities in regard of the sales growth for the company. Whats more, the sales manager should develop sales plans and assist in developing the market. Also, the sales manager should direct support and train related local Account Sales Managers to achieve branch and personal objectives. Moreover, it is a need for sales manager to monitor the sales result for each sale on a monthly basis to make sure that his monthly sales quota is met. At the same time, meet with top customers, assist sales representatives to maintain relationships and close deals is also their responsibilities. When it comes to the authority, the sales manager has the framework of the guidelines, policies, rules concerning line or staff relations as well as of budgets and plans approved the authority to make the decisions necessary to fulfill his responsibility. Considering the delegation, for instance, the general manager appoint the sales manager to increase the economic trade at home and abroad, and highlight the importance for the sales manager to make a plan about the cooperation with some of the large and medium-sized enterprises at home and abroad, and enhance the sales of the Tasty Company. Also, the sales manager can carry out the plan if the general manager gives the authority to make the cooperation plan, and communicate with other companies and give abundant information and resources. Meanwhile, its essential for the general manager to support and monitor the sales manager. l The Authority, Responsibility, Delegation of the Administration ManagerThe responsibilities of the administration manager in the Tasty Company are establish and maintain good relationships with local governmental authorities, and in charge of management of all offices in China including the head office and factory property. The administration manager has the authority to check finance manager expenses, precede work described. Also, approval of department expenses within the approval limited and approval to selection of service provider within the responsible area are also the managers authority. Next comes to the delegation, for instance, the general manage appoints the administration manager to select the excellent people to help the development of the company and tell the administration manager to increase the difficulty of hiring staff and make sure their loyalty to the company. The administration manager can carry out the plan when the general manager gives the authority and give abundant information and resources. Meanwhile, its essential for the general manager to support and monitor the production manager during the recruitment of the staffs.3.0 ConclusionIf the Tasty Company adopts the new organizational structure, it will have a good reputation for its leading market, maximum profit advanced management,. The size of the company and beneficial parts has a dramatic improve. If they do well in these every points above, they will more likely a stable development in its future.4.0 ReferenceScottish Qualifications Authority, 2004, China Modern Economic Publishing House, Managing People and Organizations
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