THE MWALIMU NYERERE MEMORIAL ACADEMY (MNMA)

DEPERTMENT OF HUMAN RESOURCE MANAGEMENT.

BACHELOR DEGREE IN HUMAN RESOURCE MANAGEMENT.

SUBJECT NAME: MANAGING BUSINESS ORGANIZATION

SUBJECT CODE: SSU07314
LECTURER NAME: MADAM, MAYALA
NATURE OF TASK: GROUP ASSIGNMENT.

GROUP. MEMBERS NO. 6

S/N STUDENTS NAME REGISTRATION NUMBER
1 CHIVUNGU, Dharau Juma MNMA/BD.HRM/6753/21
2 ADRIANO, Anisya S MNMA/BD.HRM/6755/21
3 OLVACAN, Meshack M MNMA/BD.HRM/6756/21
4 ALFRED, Agnes MNMA/BD.HRM/6825/21
5 ELIZEUS, Evodia MNMA/BD.HRM/6712/21
6 AYUBU, Hadija Athumani MNMA/BD.HRM/6726/21
7 MLANGI, Agnes M MNMA/BD.HRM/6734/21
8 SHARIFU, Mohamedy Haji MNMA/BD.HRM/6738/21
9 MUSSA, Mariamu Ramadhani MNMA/BD.HRM/6741/21
10 MBWAMBO, Debora Zawadi MNMA/BD.HRM/6762/21
11 MODESTUS, Frenk Antony MNMA/BD.HRM/6766/21
12 DILLI, Venance V MNMA/BD.HRM/6768/21
13 NELSON, Elizabeth MNMA/BD.HRM/6778/21
14 EMMANUEL, Neema MNMA/BD.HRM/6790/21
15 NZOTA, Lauliano Pelegrin MNMA/BD.HRM/6792/21
16 MKISA, Leuterius MNMA/BD.HRM/6829/21
17 KILUWA, Jesca James MNMA/BD.HRM/6839/21
QUESTION
There are numerals types of organization structure but all of them are developed based on
essential, ingredients/element. Briefly and explain essential element in designing organization
structure and comment on a structure that are suit for rapid changing in business environment
 PART A.

Organizational Structure is a visual diagram or system that represent the hierarchy power,
roles, and responsibilities of the employees within an organization. There are seven types of
organization charts which are Hierarchical organization chart, Matrix, Collaborative, Flat,
Entrepreneurial/Centralized, Traditional and Horizontal organization chart. It use markets,
geographical locations, products, functions, or processes to guide them depending on various
business sizes. It identifies each job, its function and where it reports to within the organization.
An organizational structure affected by the following factors which are organizational
environment, strategy, technology and Human Recourses. It based on range of elements. The
following are the essential elements in designing organizational structure as follows;

Work specialization define how responsibilities are split between employees based on
the job description. It’s used to split projects into smaller work activities and assign digestible
tasks to individual employees. The most common results of improper specialization are low
efficiency and burnout.

Documentation is an act of grouping specialists on the basis of the job description, skills,
location, or other factors that connect them. The biggest challenge is choosing the criteria for
depart mentation. In many cases, it’s no more enough to apply functional departmentation -
where employees are grouped based on the tasks they perform. Startups often go for matrix
departmentation that involves combining two types of departmentation and takes the best out of
both worlds. For instance, functional departmentation can be joined by geographical
departmentation to better serve clients in different locations.

Chain of command represents a system for passing instructions and reporting within an
organization. Ideally, it distributes the power, supports knowledge sharing, and encourages
employee accountability. The traditional chain of command makes decision making more
complex and does not allow for much flexibility. On the contrary, modern approaches strive to
enhance employee autonomy and avoid micromanagement.

Span of control regulates the number of direct reporters managed by a single

supervisor. It heavily depends on the three aforementioned elements of organizational structure.
Furthermore, to identify the right span of control, you need to evaluate your leader’s capacity,
workplace size, and experience level of employees.

Centralization and decentralization are the concepts defining how managers, as well
as employees, give input on company goals and strategy. While centralization gives leaders the
ultimate control over decision-making processes, decentralization allows employees to impact
business decisions. We all dive into centralized and decentralized organizational structures in the
further section. Making more complex and does not allow for much flexibility. On the contrary,
modern approaches strive to enhance employee autonomy and avoid micromanagement.

Formalization determines to which extent business processes, policies, and job

descriptions are standardized. It may regulate communication between employees and managers,
workplace culture, operational procedures, etc.

The following are the types of organization structure/ charts

HIERARCHICAL ORGANIZATION STRUCTURE/ CHART, employees are grouped

with every employee having one clear supervisor. The hierarchical chart is the common chart
used by large organizations like Corporations, Governments and organized Religious with
different levels to management, power or authority basing on function, geographical and product
or services.

MATRIX ORGANIZATION STRUCTURE/ CHART

This type of organizational management in which people with similar skills are pooled for work
assignments, resulting in more than one manager to report to (sometimes referred to as solid line

and dotted line reports, in reference to traditional business organization charts). Example:

All engineers may be in one engineering department and report to an engineering manager.

ENTREPRENEURIAL/ CENTRALIZED ORGANIZATION STRUCTURE

Is the charts of the org structure that encourages frequent interaction and communication among
their their functions department. This is because entrepreneurial org structure are for innovators.
They are normally small business hence they are unable to departmentalize their org.
 COLLABORATIVE ORGANIZATION STRUCTURE

The organization structure is much more fluid and “flat”, with individuals given greater
responsibility to make decisions appropriate to their role and the task concerned, without the
bottlenecks caused by layers of management approvals and red tape. Individuals are defined not
by their role, their seniority, or even their team, but by the set of skills, knowledge and
experience they can contribute to a particular task, discussion or activity. New ideas can be
executed more quickly, enabling the organization to respond rapidly to competitive challenges or
market pressures.

FLAT/ CIRCULAR ORGANIZATION STRUCTURE

Chart type mostly adopted by small companies and start-ups in their early stage. It’s almost
impossible to use this model in larger companies with many projects and employees. Many
levels of middle management is eliminated. This enables employees to make decisions quickly
and independently. Thus a well trained work force can be more productive by directly getting
involved in decision making process.

TRADITIONAL ORGANIZATION STRUCTURE

Based at principle of improving workers specialization and expertise in the specific jobs or tasks
(departmentalization) Subdivision:--Functional structures-Divisional structures Product,
geographical and Customers-Process structures Matrix structures-Combine the functional and
divisional structures.

HORIZONTAL ORGANIZATION STRUCTURE

The goals are to improve communication, collaboration and flexibility by decreasing hierarchy
and increasing empowerment and better mobilizing of human talents.-Team structures-Network
structure-Boundless structures.

PART B
 According to all essential element in designing the organization structure that we explained
above the suit for rapid change in business environment is hierarchical organization structure or
chart

HIERARCHICAL ORGANIZATION STRUCTURE/ CHART, employees are grouped

with every employee having one clear supervisor. The hierarchical chart is the common chart
used by large organizations like Corporations, Governments and organized Religious with
different levels to management, power or authority basing on function, geographical and product
or services. Besides hierarchical chart has more benefits and importance that can lead the rapid
change in business environment. The following are the advantages or benefits an organization
may reap from implementing a hierarchical structure include:

Clearly defined career path and promotion path

When a business has a hierarchical structure, its employees can more easily ascertain the various
chain of command. Having clear advancement opportunities can help attract and retain talented
professionals. Promotions also help employees experience increased morale, motivation and
productivity.

Department loyalty

Companies with hierarchical structures divide employees into teams and departments. When
employees are part of a department, they tend to grow a sense of team spirit and loyalty. These
sentiments can help retain employees and encourage team members to work together to achieve
the organization's goals.

Efficient leadership and communication

Having a hierarchical structure helps employees understand the various levels of leadership.
Employees tend to know who to talk to when providing progress updates or reporting issues.
Management also benefits, as they can use their authority to effectively delegate tasks and ensure
operational efficiency. Overall, hierarchical structures can lead to better communication and
collaboration across teams.

Delegation of authority
Instead of having one entity hold all the authority, a hierarchical structure delegates power to
different employees. This distribution benefits the chief executive officer, as they can focus on
making decisions that affect the entire organization. Supervisors at the department level have the
necessary authority to manage the daily performance of general employees.

Encourages specialization

The various departments within a hierarchical structure allow employees to become specialized
in a particular field. Specialization ensures an organization can offer high-quality products and
services that stand out from competitors. For example, a newspaper company could separate
employees into roles like news reporters, sports reporters and designers. The news reporters can
focus on generating breaking news, while the sports reporters specialize in sports writing. The
designers can hone their artistic abilities to create attractive news materials.

Finally hence, it can be seen that hierarchical Chart is indeed having its own advantages
and disadvantages. Many companies do not consider them as obsolete nor do they think that it
would help to increase productivity. There needs to be a balance of having hierarchical Chart but
need to allow workers to switch in between or shuffle their responsibilities. In other words, job
rotation could be considered an alternative way. Also by broadening the job role, increasing the
tasks and responsibilities, empowering them, expanding the scope of work.
 REFERENCES

Child, John 1972 Organizational structure, environment and performance

Argyris, C. 1993 on organization learning. Combridge MA: Blackwell.

Burke W. W. 1994 Organization Development: A process of learning and changing, 2nd es.
Reading, MA: addison Wesley