Organization structure and control system

This structuring provides a company with a visual representation of how it is shaped and how it can best move forward in achieving its goals. Organizational structures are normally illustrated in some sort of chart or diagram. Why Have an Organizational Structure? For instance, employees may have difficulty knowing to whom they should report.

Organization structure and control system

Buy Now To order the entire book click on the button below, and select the book from the list of available books: Please allow 5 to 10 days for delivery of the Book. Design of Organization Structure and Control Systems: Overview Organization structure refers to the role-responsibility relationships of different employees in an organization along with their pre-defined interaction patterns.

It facilitates the flow of information both vertically and horizontally in an organization. The structural dimensions of organization design are - formalization, specialization, hierarchy of authority, centralization, professionalism, and personnel ratios.

Some of the contextual dimensions of organization design are - organization size; the technology it uses; and the environment in which it operates. An organization should be structured in such a way as to go beyond maximizing performance levels and effectiveness of operations. It should encourage participation and innovation throughout the organization.

The various types of organization structures include - functional, divisional, matrix, horizontal, and hybrid structures. The functional structure is characterized by grouping people based on their expertise and skills.

Organizational Structure

The matrix organization tries to integrate the desired features of both the functional and divisional structures. In this structure, an employee reports simultaneously to two different supervisors.

One of these supervisors represents a functional department and the other represents the division, product, market, geography, or project. The horizontal structure prevents the rigidity and departmentalization existing in a vertical system by grouping the managers and employees into synergistic teams for problem solving.

When organizations use a combination of any two structures say, functional and divisional or functional and horizontalthe resulting structure is called a hybrid structure.

It combines the strengths of the structures being merged.

Organization structure and control system

A responsibility structure is a collection of responsibility centers. A responsibility center is a function, division, or unit of an organization under a specified authority with a specified responsibility. Responsibility accounting can be defined as a system of management accounting under which accountability is determined according to the responsibility allotted to various levels of management.

In an organizational setting, it is necessary that the performance measurement systems are designed to be fair. Two major aspects to be considered are controllability and goal congruence. Goal congruence is achieved when managers and employeeswhile working toward their best self-interest as perceived by themselves, take decisions that are successful in attaining the overall goals of the organization.

This happens when their individual objectives are aligned with the organizational goals. Transfer pricing is a tool used in responsibility accounting to assign monetary values to transactions taking place between two or more responsibility centers. According to the nature of monetary inputs and outputs, responsibility centers can be classified into four types.

They are cost centers, revenue centers, profit centers, and investment centers. Cost centers are further divided into standard cost centers and discretionary expense centers.

Home Quicklinks

Designing an optimal management control system involves determining the specific control measures to be used and the degree of tightness or looseness of control required to provide the desired level of certainty of achievement of objectives.

The decision on the choice and degree of tightness of control is made on the basis of a cost-benefit analysis. Costs include the consumption of available resources, harmful behavioral side-effects, and the development of negative attitudes among employees.

Benefit refers to the level of certainty that the organization is able to achieve by implementing the control system. Complexities and uncertainties in the business environment make it necessary to design the organization structure and management control system in such a way that the benefits earned from operating in numerous countries are higher than the costs incurred.

Three main aspects have to be considered for designing the organization structure of an MNC. These are the strategy of international business, extent of centralization, and the division of an MNC into subsidiaries based on product, operational location, or function.

Organizations can choose from one of the following four strategies for doing international business - international strategy, multi-domestic strategy, global strategy, or transnational strategy. This strategic choice depends on the pressure on cost competitiveness, pressure for local responsiveness, and the need for worldwide learning.An organizational structure defines how activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims.

Organizations need to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive advantage. Organizational structure can also be considered as the viewing glass or perspective through which. Chapter 11 organizational structure and control 21, views.

Share; Like; Download Chapter 11 organizational structure and control 1.

By Moya K. Mason

(SBU) Form: multidivisional organization structure with three levels to support the implementation diversification strategy • 1. Corporate headquarters • 2.

ISO IEC Plain English information security management definitions. Use our definitions to understand the ISO IEC and standards and to protect and preserve your organization. A social unit of people that is structured and managed to meet a need or to pursue collective goals.

All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks.

Organizations are open systems--they affect and are affected by their. Types. There are a variety of legal types of organisations, including corporations, governments, non-governmental organisations, political organisations, international organisations, armed forces, charities, not-for-profit corporations, partnerships, cooperatives, and educational institutions..

A hybrid organisation is a body that operates in both the public sector and the private sector. Organizational Structure. At Management Systems, we have a unique approach to organizational structure that focuses on three distinct, yet related levels.

Macro Structure – the boxes on an organization chart and how they are arranged.; Micro Structure – how the roles and responsibilities of each position-holder are defined and how these “role descriptions” are managed.

Organizational structure - Wikipedia