BUSINESS SYSTEM REPORT

Business System report



Introduction

Any organization is incomplete if it does not have a specific organizational structure. Any organization cannot run effectively or efficiently as the flow of the communication totally depends upon the type of organizational structure which is adopted and followed within that organization. Having a proper organizational structure helps in the flowing of communication that could ease up the business operations so that they could get the desired results on time with minimum wastage of resources. This also displays the level of efficiency that the top level management has in devising and following such an organizational structure that could benefit the origination in the most effective way. There are two kinds of organizational structure that are followed commonly. One is the hierarchical and other is flat organizational structure that is discussed in detail in this paper. Also the importance of flow of communication and its process is also discussed as another part of this research work.

Discussion

Hierarchical Organizational Structure

An organization that has a hierarchical structure within its system means that every person within an organization are aligned in a systematic order in which a single person or group of persons are subordinate to other person or personals. Within any organization, hierarchy is usually aligned in which a single person or a group of persons that are highly skilled and experienced and possesses more organizational powers are at the top having people under their command who are considered their subordinates and are mostly governed by their superior authority that is top level management. This hierarchy is mostly called as the dominant mode within an organization which is mostly found in large structured businesses that run their business on large scale either domestically or internationally. For example, the board of directors are the top level management which have many powers in order to run their organization more efficiently and they are the ones who gave instructions to people below their jurisdiction who later then convey those messages or instructions to their subordinates so that the required result could be obtained. Employees that are connected to the hierarchical structure of the organization are mostly in communication whit their immediate superior and also along with that employee who is their immediate subordinate. This method has been proved to among the best methods of structuring any organization as it is useful in the minimizing of overhead related to communication as the flow of information gets limited which is also the major limitation of this kind of organizational structure. The commanding chain that is the way in which the authority is organized is normally in the shape of a pyramid.

Hierarchical Organization Diagram

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In the above traditional system of hierarchy, a senior manager is among the board of directors and is responsible for making effective strategies and directs the operations of overall business while in the middle, managers who are subordinates to the senior manager have the responsibility are assigned with specific operations such as marking and or financing for the ...