In terms of how the interrelationships between these various functions or departments work, I would argue that the action of any one department has a knock-on effect in other departments. If any department does not accomplish its function, the entire business would suffer. There are four main business functions: marketing, personnel management, financial management, and operational management. The Corporation was generated to enable and expedite the merger of the two key state-owned airlines in India including Air India, with its subsidiary Air-India Express and Indian Airlines, together with its subsidiary Alliance Air (Civil Aviation, 2019). Buchanan and Huczynski (2010) argue that the structure of the organizations serves 3 functions: Without appropriate organisation on a variety of fronts, most business will limp, unable to set or achieve their strategic plans therefore organisational functions are the glue that holds all the pieces of your business together in the pursuit of their ultimate objective. One of the key advantages of espousing a functional structure includes clear and well outlined lines of authority, which include the fundamental decision-makers in every department responsible for setting the general mission and tasks. Situated at the Safdarjung Airport in the city of New Delhi, the responsibility of the Ministry of Civil Aviation takes into account formulating and articulating nationwide policies and programmes that facilitate the development as well as regulation of Civil Aviation individual within the nation. Y(_w_C(uR[m^>1_JNbkbo8F_oea^i:H#/>yR5 They need to understand how their actions have either a positive or negative impact on other parts of the company. 1 0 obj The company describes the jobs and functions within the organization specifically. You can set up your business structure around your organizational functions, but even if you don't, function and structure will influence each other. jeOBUga.:dR. s1.src='https://embed.tawk.to/630b62a154f06e12d8913c34/1gbi7iir7'; Enter the email address you signed up with and we'll email you a reset link. Larger organizations usually have separate departments. <> <> Source: Shellar (2018) .JI;gf.ljthUHy(hfu-HGf'l-A6p@^bnHdQRE79+'1O?$I5@m~(dk`yv}qul M}J5fn&F-u$!A$r%euQS(:I%-AZT9y0FY 2 )#9. Provide examples to support your rationale. Analyse the advantages and disadvantages of interrelationships between organisational functions and the impact that can have upon organisational structure. A fitting instance is the aspect of having to manage six different human resources or accounting operations, instead of a single, centralized operation. It may disrupt relationships among members of the organization. Our summaries and analyses are written by experts, and your questions are answered by real teachers. Log in here. endobj Secondly, Air Indias engineering department deals with matters pertaining to maintenance, repairing and renovating of aircrafts. Every new invention or breakthrough will have both, but we as humans need to take care of that and use the positive sides of the invention to create a better world. The commercial department of the organization deals with sales and revenues, business promotion and publicity, as well as matters that pertain to public relation and advertisement. (function(){ [d"j]NdsBD3{jjZ*Mp;7dWhWE**W;5 hHFU)HU Case of Air India Organizational structure is the most crucial element for the success of any business. : #4355. In accordance to Sherman and Thompson (2019), the organizational structure delineates the relationship and interrelations between the functions of a business and ascertains the manner in which the chain of command operates through the various levels. <> % Functional Organizational Structure Considering Company Size . !zI7=H|bh/{'?nT7bGR=0/:? 16 0 obj Such division leads to specialization, where people can focus on a particular area. endobj Organization design: A guide to building effective organizations. Latest answer posted September 21, 2020 at 9:21:59 AM. The hierarchical structure of Air India comprises of a Managing Director who supervises the Deputy Managing Director and a group of Directors in charge of different functions and departments (Rani, 2013). Pay and Prestige For Civil Servants: The Historical Advantagesand Disadvantagesof Government Work The advantages have "helped to recruit and keep some very good people in government work . Fill in the order form and provide all details of your assignment. endobj However, the ancient Hindu caste system continues to have an impact on the societal order (Sharma and Singh, 2015). 0 ratings 0% found this document useful (0 votes) 0 views. The major advantage of developing strong interrelationships between the different organisational functions and their impact on the organisational structure is that the overall flow of communication becomes much smoother and flexible. A business also has to take care of its employees since they are what keeps the business running. For example, if those responsible for the human resources function were to hire an incompetent graphic designer, then the marketing department will bear the brunt of this mistake. LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations P4 Identify the positive and negative impacts . The best way to illustrate this claim to think about a couple scenarios in which a breakdown occurs in one function or another that affects the entire company. In the operational department, there are a unit that assists the businesss operation. However organisational functions have some interrelationships. Considering Company Size . LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations P4 Identify the positive and negative impacts . Do you think this definition is adequate for the present-day concept of management? However, the business strategies and the level of bureaucracy make it difficult to respond to changes immediately. Enrolling in a course lets you earn progress by passing quizzes and exams. <> 6 0 obj 7 0 obj D2 Critically evaluate the impacts that both macro and rnicro factors have upon business objectives and decision-making. This can be an ideal structure for small businesses that focus on one product or service because you can maximize performance by encouraging peer cooperation among different units at various levels of management through supervision and coordination. It's therefore important to give proper thought to how line managers are appointed, managed and developed to . Amazon has form Partnership with local retailers to increase its reach in international markets. Given that the business environment of the 21st century is defined by rapid changes and innovation, it is essential for any organization, regardless of size, to create interrelationships between its different business departments. There may be a lack of understanding as to how significant that specific are to the company. To unlock this lesson you must be a Study.com Member. endobj Civil Aviation. 1. copyright 2003-2023 Study.com. 1. Structure s1.charset='UTF-8'; D1 Provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organisational functions. M2 Analyse the advantages and disadvantages of interrelationships between organizational functions and the impact that can have upon organizational structure Factors to Consider in Organizational Design . . Advantages and Disadvantages of Interrelationships between Organizational Functions and Impact on Organisational Structure However, India is one of the biggest nations in the world and is more often than not deemed to be a sub-continent comprising of numerous cultures. Your business's functions are the things it does production, sales, marketing, research and billing, for example. Organization structure is delineated as the totality of the methods and approaches by which an organization splits its labor into separate tasks and subtasks and thereafter conducts their coordination (Koontz, 2010). z"ZEU@$8#ZpMMN9QdR7`cc CfP&~P-cvcoS= _P~r~x^.>h\`jPeBF?$7O\;yzn_Vr In essence, each division can carry out its business operations more or. The matrix organizational structure facilitates flexibility. When all of your body parts are in close communication, then you can function easily and do the things you want to do. Because the people in the functional organization are grouped according to their special set of skills, roles or task, the entire team will operate well. The team members work with other people in the field and it allows sharing of thoughts and knowledge to make the people learn new skills. Advantages and Disadvantages of Interrelationships between Organizational Functions and Impact on Organisational Structure Organizational Functions The functions of an organization take into account the different aspects undertaken by the business including production or manufacturing, marketing, sales, accounting as well as research and . The drawback is that the chain of command in a matrix may become cloudy and conflicted. Line manager support. <> An organization utilizing a matrix structure within its business operations can bring about increased flexibility within business functions as compared to a progressively more hierarchical entity (Cunlifee, 2008). Considering the Environment. It may create conflicts between functional managers which could affect the progress of projects. It may create conflicts between functional managers which could affect the progress of projects. Divisional Organizational Structure The relationship between organizational functions and structure is like a flow chart. In addition, the functional structure keep each department centralizes on its well-defined roles and operating procedures. . <>>> Companies organized by function group employees according to their activities in the organization. In fact, several leading business figures argue that the key to remaining competitive in today's marketplace is to createsynergy. stream The company relishes functional independence. By and large, a senior tech is going to handle a support problem faster than someone with less experience. This is why they are learning and evolving, because they have a goal. H&M 4. This is where the organization is divided into smaller groups based on its special functions such as IT, finance or marketing. (2019). 9 0 obj Air India comprises of significant functions that are conducted by various departments. We can see, then, how necessary it is for the various functions of a business to work together smoothly if a company is to meet its goals. Business Models & Organizational Structure, Advantages & Disadvantages of Team-Based Organizations. Functional Structure Organization Strength & Weakness, Strengths & Weaknesses of Cross Functional Teams, LetsLearnFinance: Advantages and Disadvantages of Functional Organization, Master of Projects Academy: Organizational Structure | 3 Common Types of Organization Structure in Corporate Companies, Features of a Functional Organization Structure, Describe Each of the Three Major Types of Organizational Structure. They are having strong online and click & collect programs that gives more flexibility to their customers. _Z}EuUZqLp!Xm[KOA . 17 0 obj See how these departments communicate with each other to help the business as a whole succeed? Having departments populated by employees specializing in specific work areas means that teams become siloed. The research and development department will then research and create a healthy and tasty cat food that includes those ingredients. Explains how to become a real estate agent. All matters regarding organizational policies are decided at the H.Q. Learn about the importance of good organizational interrelationships and their relation with working together and achieving goals. On the other hand, for the functional group, there are human resource, finance, marketing, research and development, security and maintenance. 45 pages. Business functions are generally performed by specific departments that are each devoted to a particular function. Employment Law & Labor Law | What is Employment Law? Basically, a divisional organizational structure extends functions across various branches. For example, there will be a marketing department, a human resources department, and a finance department. In addition, there is the advantage that the structure adapts organizational functions to the changing necessities of the organization. In order for a business to achieve productivity and profitability, the relationship between the various business functions must be carefully managed. 2. A slowdown in production might, for instance, affect customer service as employees there scramble to address consumer complaints and marketing as that department must roll out a new advertising campaign to renew consumer enthusiasm. In the following. You can end up with departments that don't talk to each other or cooperate well. Larger businesses with separate departments will find that each individual department will have its own goals, but these department goals help to achieve the main goal of the business. The functional organization may have unhealthy competition working with the other areas. M4 Apply appropriately SWOT/TOWS analysis anci justify how they influence decision-making. The departmental interrelationships within the organization are important for the success of the business. Another disadvantage of functional organization structure is that these functional groups may not be able to communicate more often which decreases flexibility and innovation. flashcard sets. classification to highlight differences between them. The drawback is that with employees in each division performing identical functions, you could end up with a lot of redundancy and inefficiency. What Are the Disadvantages and Advantages of Using Employment Teams in an Organization? Choo, S., & Bowley, C. (2007). On the other hand, functional structure can create divisions between departments if a conflict develops between departments. CSET Business - Major Functions in a Business, Psychological Research & Experimental Design, All Teacher Certification Test Prep Courses, Introduction to Marketing: Definition and Applications, Operations Management: Focusing on Production Efficiency & Customer Satisfaction, Human Resource Management: Hiring and Staffing, Product Development and Business Growth: Process & Strategies, What Is Accounting? As a member, you'll also get unlimited access to over 88,000 grassroots elite basketball ; why does ted lasso have a southern accent . ; For instance, departmentalisations according to functions are accounts, sales, marketing, production, operations and human resource department. A functional structure for an organization is not without its drawbacks, however. I need an example of a international partnership for Amazon. Create your account. The interrelationship between different business functions is crucial to the success of any business. <> Besides that, it also reduces cost by decreasing work duplication and use of resources in the organisation. s'=;lgUDRBl"? Chapter 5- Forms of Organizational Structure-1. Some of the advantages of interrelationships between organizational functions are . A chart shows the lines of authority and control running between different departments and levels of management. All rights reserved. Organization structure and design. To Achieve D1 you need to : Provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organisational functions. An organization, simply put, is an organized group of people. "Management is an art of getting things done through people." It helps the organization to perform work according to the function, thus avoiding any duplication of work. As an example, employees within a marketing department know that their job is marketing and, as a result, those employees can focus on improving their marketing work and even specialize in a specific area of marketing. endobj The most important advantage of marketing is therefore quite simply improving the businesses profits by boosting sales.It can also be difficult to set priorities when employees are moving between competing projects. from St. 1. The disadvantages refer to the cost of the industrial equipment, which requires periodical cleaning, maintenance and optimization, or the waste of energy and heat during the operation. The company is getting the advantage of their expertise and knowledge. An organization is simply an organized group of people. In one example, there may be a request from the marketing department which may not be prioritized in order to attend . Leadership Learning & Development Quality control also might have to step in and find out what has happened to make production less efficient. This tends to eliminate duplication of assignments that waste time and effort and makes it easier for management to direct work to appropriate employees. In addition, owing to the huge population, there is cheap labor force, an appealing aspect for several businesses such as Air India. Businesses also have to be concerned because consumers have also become aware of environmental concerns, and many consumers are demanding earth-friendly products and have shown a willingness to pay more money to competitors who observe environmentally-friendly practices. Considering the Environment. Pn6 Ewxepalain how strengths iantderrelatkenewsistehsexternal macro factors. Analyse the advantages and disadvantages of interrelationships between different organisational functions in Nokia, and the impact it is having on the organisational structure. Interrelationships Explanation & Types | What are Interrelationships? Soln: s0.parentNode.insertBefore(s1,s0); While each department has its own goals, these goals actually help the company reach its ultimate goal. Most businesses adopt a functional organizational structure with a chain of command. Organizational structure, through its chain of command, coordinates, motivates and monitors employees. D1 Provide a critical analysis of the complexities of different types of business structures and the interrelationships of thc different organisational functions.