Organization Structure: What is functional departmentalization? Essay

IntroductionWhat is organizing? Organizing operator set the activities in such a sort that they systematic everyy contri scarcee to enterprise goals. An polish off-up consists of people whose specialize tasks atomic number 18 matching to contribute to the administrations goals.The everyday way of depicting an transcription is with an system chart. It shows the structure of the presidential term specific all toldy, the title of individually managers berth and, by means of connecting lines, who is accountable to whom and who is in bam of what atomic number 18a. The organization chart too shows the mountain chain of direction (somemultiplication called the scalar chain or the line of authority) dependween the top of the organization and the lowest positions in the chart. The chain of command represents the path a directive should evolve in traveling from the president to employees at the bottom of the organization chart or from employees at the bottom to the top o f the organization chart (Dessler, p. 120).At Phoenix Logistics, our organization chart is a creation of wasting diseaseful departmentalization. operative departmentalization means grouping activities somewhat basic functions like manufacturing, gross sales, and finance (Dessler, p. 122). At our accompany, some(prenominal)ly department is organized closely a antithetical business functions sales/marketing, carrefour snap offment, and technical support. In addition, we throw away a group of supervisors within distributively department. These supervisors functions include planning, control, and administration.At from each one of the subdivision Heads, we also have a staff that consummations in each department, with an situation Supervisor. The basic idea of Phoenix Logistics utilitarian departmentalization is to group activities near the core functions our company mustiness carry out. Hence, our core functions argon to create, integrate and deliver business-cri tical transaction circumspection systems and services that enable the heftiness effort to enhance reliability and profitability in the combative market place.Advantages & DisadvantagesAdvantagesOrganizing departments around functions has several advantages1. It is simple, straightforward, and logical it makes sense to make believe departments around the basic functions in which the enterprise must engage.2. Functional organizations usually have case-by-case departments for beas like sales, output signal, and finance that serve all the companys products, rather than reiterate facilities for each product. Because the volume in these departments is comparatively high, the unbendable typically gets increased returns to racing shellin other words, employees become much proficient from doing the same job everyplace and over again, and the company can pay larger plants and more efficient equipment. Functional organizations are therefore often associated with efficiency.3. Th e managers duties in each of the operative departments tend to be more specialized (a manager whitethorn specialize in finance or production, for instance) the enterprise therefore needs fewer ecumenical managersthose with the breadth of experience to allot several functions at once. This can modify both recruiting and teaching.4. Functional department managers also tend to receive information on single part of the big check of the companyon that which concerns their own specialized functions. This can make it easier for top circumspection to exercise control over the department managers activities.DisadvantagesFunctional organizations also have disadvantages1. duty for the enterprises overall work rests on the shoulders of one someone, usually the president. He or she may be the and 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 trouble when the firm is small or does not work with a lot of products. But as size and diversity of products increase, the job of coordinating, say, production, sales, and finance for many different products may demonstrate too great for one person the enterprise could lose its responsiveness.2. Also, the tendency for functional departments to result 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 Leadership leaders your company in a gnarled economy are a difficult, but not impossible task. Your can serve well your company weather changing times and come out a winner. As far as a bully economy is concerned the United States has experienced one as recently as September 11, 2001, and although conditions has rectifyd since then, you can bet that tough times will periodically occur in the future. Yet, during all such periods of stagnant growth and lackluster bodied performances, many companies have not only survived, but also prospered. How have they make it?Change, of course has always been present, but indisputable economic trends used to be inevitable within reasonable limits. Employments would grow at such a pace, interest judge would do this or that, and Gross municipal Products would reach such and such a level. But today all bets are off. We can scarcely predict with federal agency what will happen next week, allow unaccompanied next year. As H.G rise up said it in a different context, the pattern pf things to come fade away. neat an Optimist, optimist managers are better at problem solving during difficult times than discouraged managers. Optimistic managers are more probable to handle reversals by drawing on past experience, finding goodthings about the turn of events and fighting for what theywant. Pessimists often gestate their fate or bad plenty or seek s ympathy in understanding. Optimistic managers are therefore more that likely to overcome difficulties and turn problems into opportunities for advancement.To improve the companys performance, employees need commitment, competence, and communications, the triple Cs of success. Commitment is resolute spirit 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 quick decisions. communication theory is the critical personal contact and consensus amidst the CEO and employee that make performance at work flow smoothly.Resources AllocationWe drive revenue from three sources package licenses, computer software maintenance and execution revenues. The proportion of what each makes up of our total revenue varies found on the market and our customer base. When a customer decides to purchase our solution they are centeringsingd a licensin g fee. This fee could part depending on how many users they estimate development our system, if they need more users we would then charge the customer for more licenses. In devote 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 tryst depending on how the customer would like to be charged. Any software whether it is out of the box seat or custom produced, there is an implementation process that would need to be through with(p) in order to ensure 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 best in illuminate 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.Con clusionPhoenix 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 least amount of interruption to their employees and their productivity.The return on their investment is in the ease of touch their transactions, turnaround time of those transactions and a time savings in the administrative processing. Our customers will be able to focus their attention on the selling, trading and the livery of energy to their customers, this is their business and where their profits are generated. Phoenix Logistics is in the business of destiny our customers make a profit and to make their customers happy.Works CitedDessler, Gary. Management, Leading People and Organizations in the 21st Century (2nd ed.), 2001. New jersey Prentice Hall, Inc.