Organization Structure

Organization Structure

An organization structure is representing the differences level of responsibilities of a company, and how their decision put into the management structure.Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and how information flows between the different levels of management. A tall organization is one in which there is a long chain of command. Different levels of the organization are known as hierarchy.  A flat organization has a short chain of command.

Chain of commands

Chain of commands usually being used in a big company. An example through the picture, the top of the people is the Boss and follow by the Manager , Assistants and workers. In chain of commands of businesses, the boss give orders only to those directly below them in the chain of command and the workers receive orders only from those directly above.

Span of commands

A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager - the wider the span of control. Less means a narrower span of control.

Bill Gates's organization and structure

Structure

Microsoft is a public corporation. Shareholders elect the board of directors, who in turn hire the top executives including the president, vice presidents, secretary and treasurer. The company must follow Washington state's laws regarding a corporation and must also abide by Securities and Exchange Commission regulation for financial reporting. As of July 2010, Steve Ballmer held the title of CEO, while co-founder Bill Gates was the chairman.

Organization

As of 2010, the company has a divisional organization as described by Richard L. Daft in his book, "Management." Each division, or product group, focuses on a specific line of goods and services. Each group has its own research and development, sales and customer service staff. Daft says although this type of organization is more expensive, it allows the groups to better serve their customers. Each product group has one executive in charge who reports directly to the company's president.

My opinion on his organization structure

In his book "Management," Daft describes how companies benefit from using a divisional, or group, organization. The entire group is often in one location, allowing more interaction and better communication between all the employees developing or supporting one line of products. Daft adds that having a smaller business unit means each division can develop new products and get them to market faster, making it easier to compete against rivals.