Organization struture

"Organizational structure refers to the different hierarchies or levels in a company."

The organization structure is extremely important. It influence the whole organization,

 An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.

This week, our team analysis the Kodak. We searched the information on the Internet. 

This strategic failure was the direct cause of Kodak’s decades-long decline as digital photography destroyed its film-based business model. Kodak long-term dependence on relatively backward traditional film department, and for the impact of digital technology to the traditional image department, the management style of old-fashioned, meet the traditional film products market share and monopoly position, lack of market prospective analysis, there is no timely adjust the structure of business strategic focus and divisions of the company, decision-making hesitant, miss the good chance.


Centralized Vs Decentralized Organization Structure

Definition

Centralized organizational structures rely on one individual to make decisions and provide direction for the company. Small businesses often use this structure since the owner is responsible for the company’s business operations.

Decentralized organizational structures often have several individuals responsible for making business decisions and running the business. Decentralized organizations rely on a team environment at different levels in the business. Individuals at each level in the business may have some autonomy to make business decisions.

Advantages

Centralized organizations can be extremely efficient regarding business decisions. Business owners typically develop the company’s mission and vision, and set objectives for managers and employees to follow when achieving these goals.

Decentralized organizations utilize individuals with a variety of expertise and knowledge for running various business operations. A broad-based management team helps to ensure the company has knowledgeable directors or managers to handle various types of business situations.

Disadvantages

Centralized organizations can suffer from the negative effects of several layers of bureaucracy. These businesses often have multiple management layers stretching from the owner down to frontline operations. Business owners responsible for making every decision in the company may require more time to accomplish these tasks, which can result in sluggish business operations.

Decentralized organizations can struggle with multiple individuals having different opinions on a particular business decision. As such, these businesses can face difficulties trying to get everyone on the same page when making decisions.

The Disadvantages of Having Many Levels in an Organization Structure
1.Slow Decision Making

2.Communication Problems

3.Expensive

4.Inflexible and Rigid

There are many kinds of organization structure

1.Functional Structure

• Functional organization is a common type of organizational structure in which the organization is grouped based on specialization by functional areas, such as IT, finance, and marketing.

2. Divisional structure

3.Matrix Structure

Reading articles and cross-referencing them to my books and lecture/tutorial notes has since increased my knowledge and understanding on business studies.