Types of Departmentalization Used by Business Organisations in Malaysia.
Introduction
Every organisation has certain basic parts that are made up of people who perform, supervise, and plan besides those who render support services and technical advice. As such, studying the structure or design of an organisation means analysing how these parts are put together, who reports to whom, the degree of centralisation or decision making power concentrated at the top, the extent of rules, policies, regulations, and procedures in the organisation. The building of the initial structure of an organisation may be based on the conditions prevailing in the society and the industry characteristics prevailing at the time and the personality of the founder (entrepreneur). As the organisations grow in their size from small to large over a period of time, their priorities do change and it becomes necessary for the organisations to make changes in the organisation design in order to ensure that the organisations function efficiently.
In any discussion of Organizational Structure, it’s helpful to become acquainted with a few key terms that describe specific aspects of business organization practices. Very simply, Organizational Structure is the manner in which an organization arranges itself. Once an organization investigates its options and decides upon how it’s going to structure itself, it’s common to draw up an Organizational Chart.
An Organizational Chart
Some organizations consider their Organizational Charts as confidential, while other organizations most of them, in fact, do not. Some companies go so far as to post their Organizational Charts on their publicly accessible websites. Other key terms include Centralized and Decentralized Decision Making. Centralized decision making refers to a business model in which decisions are directed to the top of the organization. Decentralized decision making is a model in which the organization tends to push the decisions down to the lowest levels, which can be a good thing. With decentralized decision making,
Every organisation has certain basic parts that are made up of people who perform, supervise, and plan besides those who render support services and technical advice. As such, studying the structure or design of an organisation means analysing how these parts are put together, who reports to whom, the degree of centralisation or decision making power concentrated at the top, the extent of rules, policies, regulations, and procedures in the organisation. The building of the initial structure of an organisation may be based on the conditions prevailing in the society and the industry characteristics prevailing at the time and the personality of the founder (entrepreneur). As the organisations grow in their size from small to large over a period of time, their priorities do change and it becomes necessary for the organisations to make changes in the organisation design in order to ensure that the organisations function efficiently.
In any discussion of Organizational Structure, it’s helpful to become acquainted with a few key terms that describe specific aspects of business organization practices. Very simply, Organizational Structure is the manner in which an organization arranges itself. Once an organization investigates its options and decides upon how it’s going to structure itself, it’s common to draw up an Organizational Chart.
An Organizational Chart
Some organizations consider their Organizational Charts as confidential, while other organizations most of them, in fact, do not. Some companies go so far as to post their Organizational Charts on their publicly accessible websites. Other key terms include Centralized and Decentralized Decision Making. Centralized decision making refers to a business model in which decisions are directed to the top of the organization. Decentralized decision making is a model in which the organization tends to push the decisions down to the lowest levels, which can be a good thing. With decentralized decision making,
References: 1. www.tmpoint.tm.com.my/content.cfm/ID/1BD61A81-D267-404E-9E353F2C4EBA979A 2. www.tarc.edu.my 3. www.utar.edu.my 4. Matrix organizational design, Jay.R 5. Organization Structure, Craig W. Fontaine