Sunday, August 7, 2011

Organization Functions Affecting Organisation Structure

In the designing of organization structure, managers must focus on various activities related to the organization like, technology, size, philosophy and strategy, departmentalization of functional as product, customers, geographic etc. Each of these factors affect the organization structure. Organization objectives and goals also based on organization functions. Functions like marketing, finance, human resources and production influence organization structure. In large organization, each function is subdivided to achieve right span of control (Liker & Meier, 2005).

Toyota structured is affected by various functions. In functions structures, each person serves a specialized role and handles large volumes of transactions. Functional structures are more effective when an organization does not have a large number of products and services. This is more effective in stable environment that are slower to change. Each functions influences the organization structure, these are:

Marketing functions: Characteristics of the market like income class, buyer behavior, competition and geographic dispersion must be considered in organizing the marketing unit. Toyota distributes product across the globe so they need to develop the effective organization structure. They are focus on trade channels like wholesalers, dealers and middlemen to reach its consumers (Young & Pagoso, 2008).

Human Resource functions: Organization choice of structure according to the characteristics of its human resources and nature of the employment relationship. Toyota prefer highly skilled workforce so they perform their tasks together in groups and teams. Toyota developed organization structure according to the latest technology and create the better and longer relationship with its employees and given them freedom to make important decisions.

Production or Operations functions: Organization structure and size is based on scope of the products and services. Toyota structure is influenced by the customer, customer demand and customer segment of their products and product trends and innovation, technological advantages, manufacturing process. Toyota analyze of company product, history, strength and weakness in prefer of competitor products. All of these factors influence the organization structure so Toyota analyzes them in time to time (Hiebing, Hiebing & Cooper, 2004).

Finance functions: Toyota produces global level products so they need to put huge investments in their structure. Toyota structure is influenced by various financial factors like income of the customers, buying behavior of customers; understand the various stakeholders, economy of the various countries.

So each function influences the Toyota structure and they are developing our structure according to the change of market.

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