Investigate the situation

- Define the problem

- Identify decision objectives

Develop alternatives

- Seek creative alternatives

- Do not evaluate yet

Implement and Monitor

- Implement the plan

- Monitor implementation and make necessary adjustments

Evaluate alternatives and select the best one available

- Evaluate alternatives

- Select the best alternative

Exercise 22. Read the new words to the text with their translations. Then read and translate the text “Types of Organization Structure”.

1. an increasing number – зростаюча кількість

2. successive level – виконавчий рівень

3. commands – накази

4. subordinates – підлеглі

5. instructions – вказівки

6. accountability – підзвітність

7. a production department – виробничий відділ

8. A sales department – відділ збуту

9. A personnel or stuff department – відділ кадрів

10. disadvantages – недоліки

11. innovation – нововведення

12. Divisional structure –галузева структура

13. expansion – розширення

14. product diversification – диверсифікація товару

15. headquarters (HQ) – головне керівництво

16. a global view – загальний

17. Research and Development R&D – пошуку і розвитку

18. The matrix structure – матрична структура

19. interaction – взаємодія

20. features – риси

Types of the organisation structure

Many organizations have a hierarchical or pyramidal structure, with one person or a group of people at the top, and an increasing number of people below at each successive level. There is a clear line or chain of commands running down the pyramid. All the people in the organization know who is their supervisor or boss (to whom they report), and who are their immediate subordinates (to whom they can give instructions).

The activities of most companies are too complicated to be organized in a single hierarchy. Functional organization has become the most common form for manufacturing companies as it enables optimal control and accountability. The company is divided up into departments including production, finance, marketing, sales, and personnel or staff department.

Functional organization is efficient, but there are two standard disadvantages. Firstly, people are usually more busy with the success of their department than the whole company. Secondly, separating functions is unlikely to encourage innovation.

Divisional structure is associated with market expansion and product diversification. Divisions can be grouped around products or markets or a combination of the two. The activities of various divisions are directed by central headquarters (HQ) which take a global view of corporate strategy. Other central activities might include R&D and purchasing, to benefit from economies of scale.

The matrix structure is the most complex of the organizational forms. It is used in organizations where there is a great deal of interaction between departments or where staff report to more than one manager.

In reality a firm may display a mixture of structures. For example, many divisionalized companies have functional features within each division.