1. Organizational Design and Structure (Advantages and Disadvantages)

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Submitted By Katekot
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1. Organizational Design and Structure (Advantages and Disadvantages)

Each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals. The organization's strategy determines the organizational structure that will work best for a business at a particular point in time. For example, a small business that hires only experienced personnel, who require limited supervision, will likely adopt a different organizational structure than will a business that hires a number of recent college graduates, who require extensive supervision. (McShane and Steen, p. 362).
In this assignment I would like to offer to your attention an ABC Ltd. IT company, it’s organizational structure, job design and other segments of corporate system. All organizational structures include two fundamental requirements: the division of labour and the coordination of that labour so that employees are able to accomplish common goals. (McShane and Steen, p. 364).
ABC Ltd. is a large IT company with divisional organizational design. ABC’s design is organized around products, projects, and markets. Each division includes its own functional specialists typically organized into departments.
A company has North American division, exploration division, marketing division, production divisions and others. Divisions are relatively autonomous and consist of products and services and are different from those of other divisions. Divisions executives help determine product-market and financial objectives, manage their own hiring, budgeting and advertising. Using this structure, division heads have decision-making power, which they rely on to respond to changes in their particular markets or areas of responsibility quickly. In addition, one division might compete with another division for resources and market standing, just as…...

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