Question

1. Draw an organizational chart for your business on traditional functional structure (with at least three levels of management). (10 points)

2. You realize that your new business will implement a special project that requires inputs from different functional departments. Draw a team structure as horizontal organizational structure for your business. (10 points)

3. Compare the two organizational charts above (a and b) in terms of span of control, unity of command, chain of command. (20 points)

4. Present three objectives for that business using the MBO process. (Hint: objectives should be specific, measurable, attainable (but challenging), realistic and time-bound). Indicate standards that can be adopted in your business. (20 points)

* These questions above are linked together, please help me to solve them. Thank you

Answer 1

1) Traditional Functional Organizational Chart :

It is the most basic type of division of an organizational structure which is down based on the various functions that happens within it. It is a top down approach based on the hierarchy defining who report to whom in each division. Let’s assume ABC is an organization which has four departments IT, Marketing, Finance, HR. Each department deals in a specific set of function which is not dependent with the other one. And hence each functional division will have Managers, Senior executives, Associates with the specific skill set and knowledge of that function. Below shown is the illustration with a drawing :

		CEO of ABC
Finance Dept.		Marketing Dept.		HR Dept.		IT Dept.
Manager Finance		Manager Marketing		Manager HR		Manager IT
Assistance Manager		Assistance Manager		Assistance Manager		Assistance Manager
Senior Executives		Senior Executives		Senior Executives		Senior Executives
Associates		Associates		Associates		Associates

2) As we know that Functional Organizational Structure is a structure where each department works independently and does not provide any input to other departments, hence we have to follow a different organizational structure where it is normal to take inputs from other functional departments as well. Matrix Organizational Structure is that kind of organizational structure which does not follow traditional hierarchy and rather operates using cross functional groups where employees have dual reporting relationships. Here employees are divided into teams by project or product but they also reports to a Functional Manager. Lets understand it with the below diagram :

		General Manager
	IT Manager	HR Manager	Finance Manager	Marketing Manager
Project A	Employee Project A	Employee Project A	Employee Project A	Employee Project A
Project B	Employee Project B	Employee Project B	Employee Project B	Employee Project B
Project C	Employee Project C	Employee Project C	Employee Project C	Employee Project C
Project D	Employee Project D	Employee Project D	Employee Project D	Employee Project D

In the above diagram it shows that all four employees of Project A are reporting to four functional departments IT, HR, Finance and Marketing. The same applies for Project B, C and D.

3)

Span of control : Span of Control describes the number of people managed by someone or the number of people who comes directly under the manager.

In a Functional Organization the span is Narrow (because of the hierarchy) whereas in the Matrix Organizational Structure it is Wide due to its Flat Structure. Let’s look at finance department of the above diagrams. In the Functional Chart the Finance Manager has a span of control of only 1 who is the Assistant Finance Manager Finance whereas in the Matrix Structure Finance Manager has a Span of Control of 4 who are employees of Project A, B, C and D respectively.

Unity of Command : Principle of Unity of Command states that an Individual should get orders from only one superior which is valid in a Functional Organizational Structure due to it’s hierarchical approach.

Whereas the Principle is void in a Matrix Structure because a person who works in a Project takes order from the project lead and also from his respective functional head resulting in Dual command chain.