Organisatonal Structure

        Organizational Plan helps in depicting the Organizational Structures and hierarchy requirements in an organization. It also gives a clear picture of the personnel environment in an enterprise. It depicts the hierarchy that exists between the organizational units and its relationship.

It clearly shows the individual position and its reporting structure. Organizational Plan facilitates mapping the chain of command existing in the organization.

The Success of an organization is largely determined by the strategic and operational decisions made. It can either build or cause an organization to collapse .  So who has the power to make these decisions? How is the power distributed? There are two types of organizational business structures: Centralized and Decentralized. Each of which are contrary methods for transferring decision making power.

 Centralized Organizations

Advantages:

• Easier to implement common policies and practices throughout the organization.
• Prevents other parts of the organization from becoming too independent.
• For budget control etc, it is easier to control at the central position.
• Quick and efficient decision making, as leaders are in full control and limited discussion is encouraged.
• Great use of job specialization.

Disadvantages:

• Lack of authority down the hierarchy may reduce manager motivation.
• Limits the creativity in the organization as managers and other organizational leaders are responsible for the decisions made etc.
• Organizations could suffer from several layers of  bureaucracy, as decisions at each level may take longer to be made, resulting in a sluggish operation of the business.

Decentralized Organizations

Advantages:

• As it permits many individuals to work on the same problem, it encourages motivation and creativity.
• A broad-based management team helps to ensure the company has knowledgeable directors or managers to handle various types of business situations.
• Easier to train and develop junior management, as communication between individuals is more open and encouraged.

Disadvantages:

• Decentralized organizations can struggle with multiple individuals having different opinions on a particular business decision, which could slow down the decision making process
• More difficult to ensure consistent practices and policies
• Harder to achieve tighter financial control.

          In our Previous class our Teacher got a small plant to give an analogy of organizational structure.

Through this example we as a class came across many inputs like the there are innumerable functions in the organizations which are analogous to branches of a tree and the other point was that all are connected to a common thud which has its strong roots deep in to the ground, the thud which is depicted as the Organization's Management which binds all the various departments and keep them in perfect co-ordination, also there was a analogy which was discussed as any branch which if plucked out of the tree wont have any existence of its own similar to any dept. of the company which needs a strong support from the management of the company to sustain itself. 

Here is a video to give a brief of Organizational Structure.