Organizational Structure

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Question 1. Organizational Structure:

a. Draw and discuss the type of organizational structure?

Answer: Organization structure is a system which defines the line of authority and responsibility within an organization . it specifies who will report to whom and how information will flow at various level of management. Well defined organization structure helps in achievement of organization goals and objectives faster. It also defines line of communication for the workers. It helps in laying down the well defined procedure for grievance management for the employees of the organization. it helps in determining the span of control for the managers. Organizational structure defines the different levels of management in the organization. it also determines which person in organization is assigned with which responsibility.

There are various types organizational structures:

1) Line Organizational structure: The structure in which line of authority flows vertically from top to bottom. The CEO of the organization give instructions to managers who In turn give instructions to foreman and foreman to workers.

Figure 1: Line Organizational Structure

2) Line and staff organizational structure: The structure in which supervisors give the work instructions to the workers to perform the work. Supervisors are thinkers and workers are the doers who do all the work .

Figure 2: Line And Staff Organizational Structure

3) Functional organizational structure: The structure in which hierarchy is defined on the basis of different functions performed by the organization. The operations of the organization are classified into different categories such as Production ,Manufacturing , Finance, Human Resource Management, Logistics and supply chain management. Each function is assigned different manager and staff members according to their area of specialisation who report to their manager and manager in turn report to chief executive officer.

Figure 3: Functional Organizational Structure

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4) Matrix Organizational Structure: This structure is two dimensional in which authority and responsibility flows vertically and horizontally. It violates the unity of command principle of management as at one time one employee can receive orders from more than one employee. It is used for large organizations which have a range of operations.

Figure 4: Matrix Organizational structure

5) Project Organizational Structure: The structure which is defined in reference to requirements of particular project by assigning employees from different departments of the organization.

Figure 5: Project Organizational structure

6) Hybrid Organizational Structure: The structure which combines 2 or more structures according to needs of the organization is called Hybrid Organizational Structure

Figure 6: Hybrid Organizational Structure

Al Saffa food in Oman is company which is pioneer in providing sea food, Frozen fruit, Frozen fruit pulps and processed food like Chicken Franks, Chicken Mince, Chicken samosas, Chicken spring rolls, Chicken nuggets, Beef burger and Beef Mince. The board of directors team of Al Saffa foods include Chairman, vice chairman and 5 other directors. The senior management team of Al Saffa foods include Chief executive officer, Assistant CEO for Admin Affairs, Chief Financial officer and Senior Operations Manager.

Figure 7:  Organizational Structure of Al Saffa foods

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b. Explain why the chosen organization follows this organizational structure? Justify your answer the company is Al Saffa food in Oman.

Answer: Al Saffa Foods follows this organizational structure because it is large company so it has to diversify its line of Authority to manage its day to day affairs. To delegate line of authority it has appointed assistant CEO of administration affairs to manage all the matters related to administration of Al Saffa foods. The assistant CEO is supported by various team leaders , supervisors and staff. It also has chief financial officer with team leaders, Supervisors and staff to manage the day to day financial affairs of the company. The responsibility of handling all the financial statements and finance related issues lies with the chief financial officer. Al Saffa foods also have one Senior operations Manager assisted by manager, team leaders and staff to manage different operations of the company like processing of food, inventory, procuring raw material and other operations.

Conclusion: Organization structure defines roles and responsibilities of various employees of organization . it tells who is responsible for what. The organizations which have well defined organization structure can achieve their objectives and goals faster than the organizations who do not have proper organization structure. Organization structure determines span of control for various managers.

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