Organization Structure: What is functional departmentalization? Essay

IntroductionWhat is organizing? Organizing means arranging the activities in much(prenominal) a behavior that they systematic on the wholey contribute to first step goals. An organization consists of people whose narrow down tasks argon coordinated to contribute to the organizations goals.The usual way of depicting an organization is with an organization chart. It shows the structure of the organization specifically, the title of separately managers position and, by means of connecting lines, who is accountable to whom and who is in pull down of what argona. The organization chart as well shows the chain of command (some quantify called the scalar chain or the line of authority) between the concealment of the organization and the last positions in the chart. The chain of command represents the path a directive should adjudge in traveling from the president to employees at the bottom of the organization chart or from employees at the bottom to the top of the organization ch art (Dessler, p. 120).At capital of Arizona Logistics, our organization chart is a creation of operable departmentalization. available departmentalization means separateing activities around basic functions like manufacturing, sales, and finance (Dessler, p. 122). At our companion, all(prenominal) department is organized around a different stock functions sales/marketing, product give outment, and technical stick up. In addition, we have got a group of supervisors within from apiece one department. These supervisors functions include planning, control, and administration.At each of the Department Heads, we to a fault have a staff that trims in each department, with an state of affairs Supervisor. The basic idea of Phoenix Logistics functional departmentalization is to group activities around the sum of money functions our lodge must carry out. Hence, our core functions are to create, integrate and supply business-critical transaction management systems and services that enable the energy industry to advance reliability and meshworkability in the competitive market place.Advantages & DisadvantagesAdvantagesOrganizing departments around functions has several(prenominal) advantages1. It is simple, straightforward, and logical it delivers sense to build departments around the basic functions in which the enterprise must engage.2. Functional organizations usually have single departments for areas like sales, production, and finance that serve all the companys products, rather than duplicate facilities for each product. Because the volume in these departments is relatively high, the firm typically gets incr simplenessd re solves to home platein other words, employees become more proficient from doing the same line of forge over and over again, and the company can afford larger plants and more efficient equipment. Functional organizations are and then often associated with efficiency.3. The managers duties in each of the functional department s bleed to be more specialized (a manager whitethorn specialize in finance or production, for instance) the enterprise therefore involve fewer general managersthose with the breadth of experience to administer several functions at once. This can simplify both recruiting and training.4. Functional department managers also tend to receive information on nevertheless part of the big photo of the companyon that which concerns their own specialized functions. This can make it easier for top management to exercise control over the department managers activities.DisadvantagesFunctional organizations also have disadvantages1. Responsibility for the enterprises overall performance rests on the shoulders of one person, usually the president. He or she may be the only one in a position to coordinate the work of the functional departments, each of which is only one element in producing and supplying the companysproduct or service. This may not be a serious problem when the firm is small or does not work with a lot of products. But as size and diversity of products increase, the contrast of coordinating, say, production, sales, and finance for many different products may prove too gigantic for one person the enterprise could lose its responsiveness.2. Also, the tendency for functional departments to dissolvent in specialized managers (finance experts, production experts, and so forth) makes it more difficult to develop managers with the breadth of experience required for general management jobs like president.ImplicationsQualities of lead Leading your company in a tough economy are a difficult, but not impossible task. Your can help your company weather changing times and come out a winner. As far as a tough economy is concerned the get together States has experienced one as recently as September 11, 2001, and although conditions has improve since then, you can bet that tough times will periodically put across in the future. Yet, during all such periods of stag nant growth and lackluster embodied performances, many companies have not only survived, but also prospered. How have theydone it?Change, of course has always been present, but certain economic trends employ to be predictable within reasonable limits. Employments would grow at such a pace, interest rates would do this or that, and Gross internal Products would reach such and such a level. But today all bets are off. We can scarcely predict with confidence what will pass next week, let alone next year. As H.G Wells express it in a different context, the pattern pf things to come fade away. become an Optimist, optimist managers are cave in at problem solving during difficult times than pessimistic managers. Optimistic managers are more likely to handle reversals by drawing on past experience, finding goodthings about the turn of events and fighting for what theywant. Pessimists often accept their fate or bad peril or seek sympathy in understanding. Optimistic managers are theref ore more that likely to overcome difficulties and turn problems into opportunities for advancement.To improve the companys performance, employees motivation commitment, competence, and communications, the three Cs of success. Commitment is determined olfactory property of an Olympic swimmer who practices alone for hundreds of pre-dawn hours. Competence is the inner confidence of a well trainedpilot who uses all his knowledge, training, equipment, and intuition to make bustling decisions. Communications is the critical personal contact and consensus between the CEO and employee that make performance at work flow smoothly.Resources AllocationWe generate tax from three sources software licenses, software maintenance and execution revenues. The proportion of what each makes up of our total revenue varies based on the market and our client base. When a customer decides to purchase our solution they are charged a licensing fee. This fee could vary depending on how many users they est imate using our system, if they need more users we would then charge the customer for more licenses. In rig to receive upgrades and enable the customer to use our support desk when there is an issue, we charge a support fee.This fee could be a yearly, quarterly or monthly allocation depending on how the customer would like to be charged. each software whether it is out of the box or custom produced, there is an implementation process that would need to be done in order to operate that the software is working properly. This could consist of on-site training, training materials and the use of our support desk.The revenues for our company are generated by these services. These services need to be the outdo in class in order for our company to make a profit. Whenwe say best in class that means that they are better than any of our competitors and will give our customers a competitive advantage.ConclusionPhoenix Logistics has the expertise and the means for producing the best software in the energy industry. We work with our customers in order to plan, build and implement our software into their business with the to the lowest degree amount of interruption to their employees and their productivity.The return on their investment is in the ease of processing their transactions, turnaround time of those transactions and a time savings in the administrative processing. Our customers will be able to focus their tending on the selling, trading and the delivery of energy to their customers, this is their business and where their profits are generated. Phoenix Logistics is in the business of helping our customers make a profit and to make their customers happy.Works CitedDessler, Gary. Management, Leading People and Organizations in the 21st carbon (2nd ed.), 2001. New Jersey Prentice Hall, Inc.