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The report focuses on describing various types of organisational structures and their advantages and disadvantages. Strategies which can be connected to the products, service, customers, and revenue generation are explained. The various external factors and trends which can impact organisational processes with the help of PESTEL and Porter's Five forces analysis models are described. Two current issues that can impact organisation system and structure and the impacts of people practice, impacts of technology on people practice organisation system are also explained in this report.
Businesses around the world and industries use varied organisational structures to streamline their operative procedures, in following few potent organisational structures are discussed with their key advantages and disadvantages.
Line Organisational Structure
In a line organisation, only direct, vertical relationships exist. Organizational structure includes just those departments that directly contribute to the organization's primary goal (Chand, 2022). Line departments of a normal company include things like production and marketing. The authority of an organisation is derived from its organisational structure.
(Source: Gaspary, Moura and Wegner, 2020)
(Source: Mosalaesi and Laryea, n.d)
Hybrid Organisational Structure
Multinational corporations, such as International Business Machines USA, employ this style of organisation to compete in the worldwide marketplace. The degree of international focus and commitment is one component that goes into determining the structure of an organisation. It is possible for multinational firms to have their headquarters in one country while having subsidiaries in other nations reporting to the CEO or president (Iosim, Popescu and Vuici, 2019). There are a variety of ways to break up the overseas subsidiaries and divisions of a parent company into different nations within the same area, such as North America and Asia.
It is important to keep in mind that although the primary emphasis is on worldwide geographic structures, organisations may also pick functional or process or product divisions in addition to geographic patterns at their headquarters.
(Source: Nwachukwu and Chladkova, 2019)
Project Organisational Structure
Work may flow horizontally, diagonally, upwardly, and downwards in various project organisational structures. The organization’s skill and ability distribution and the need to apply it to the challenge at hand determine the flow of work (Xue et al., 2021). The emergence of project organisations and matrix organisations has been a response to these kinds of challenges.
A project organisation is a short-term grouping of people from various parts of the company who work together to accomplish a particular goal. Effort, resources, and results are dedicated only to the allocated project (Mosalaesi and Laryea, n.d). Members of the cross-functional team that worked on the project may return to their prior roles or be allocated to a new one. There are many instances of projects, such as research and development, product development, building a new factory, housing complex, retail complex, bridge, and so on.
Figure: Project Organisational Structure
(Source: Chand, 2022)
(Source: Gaspary, Moura and Wegner, 2020)
The organizational strategy plays the most predominant role in any organization as depending on the strategy the entire business operations and functions depend on ranging from the products, customer services, and revenue collection. For operating a business, the organizational leaders need to maintain a proper product strategy that can meet the satisfaction and requirements of the customers.
Strategy to products and services
The strategy for the business organization for developing a good product strategy is to develop the best quality products that can meet the satisfaction level of the customers.
The products need to be high quality based and cost effective so that the customers can be attracted with the products. Most importantly, maintaining the customer needs and requirements for the products is essential. Therefore, the main strategy for the business organisation is to deliver customer-oriented products which can enhance the satisfaction level of the customers. It will also increase brand image and brand value for BMC resulting in development of the company (Hosseini, Soltani, and Mehdizadeh, 2018). The product manager needs to identify the p
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