Aftership Case Study Based in Hong Kong, AfterShip provides automated shipment tracking as a service, supporting shipping services worldwide and handling over 30 million packages every month.
It identifies each job, its function and where it reports to within the organization. This structure is developed to establish how an organization operates and assists an organization in obtaining its goals to allow for future growth.
The structure is illustrated using an organizational chart. Types Several types of organizational structures are each defined to meet the needs of organizations that operate differently.
Types of organizational structure include divisional, functional, geographical and matrix. A divisional structure is suitable for organizations with distinct business units, while a geographical structure provides a hierarchy for organizations that operate at several locations nationally or internationally.
A functional organizational structure is based on each job's duties. A matrix structure, which has two or several supervisors for each job to report to, is the most complicated but may be necessary for large organizations with many locations and functional areas.
Centralization Although there are many types of organizational structures developed to meet each organization's needs, all of them provide a hierarchy that reports to a centralized location and group of executives.
The highest ranking member of an organizational chart is one or several top executives referred to as the president, chief executive officer or chief operating officer. Job Descriptions When an organizational structure is designed, job descriptions can be developed to not only meet an organizations goals, but allow for organizational and employee growth.
Internal equity and employee retention are a key to successful operations. Recruitment is also one of the highest investments for organizations, so ensuring employees have promotional opportunities and job security can assist in reducing recruitment costs.
Salary Organizational structure is also a fundamental core to create salary structures for an organization. Once the structure is established, salary ranges can be created for each job in the organization.
In most cases, each job is aligned to a salary grade, and each grade has a specified salary range. This allows an organization to meet its financial goals and ensures salaries are distributed fairly within financial budgets.
Expansion If an organization expands, the organizational structure allows room for growth. This can include adding additional layers of management, new divisions, expanding one or several functional areas or appointing additional top executives.
When the structure is reorganized for expansion, it provides the foundation to edit salaries and job descriptions quickly and efficiently with minimal disruption to an organization's operations.
References 1 Societyy for Human Resource Management: Introduction to the Human Resources Discipline of Organizational and Employee Development About the Author This article was created by a professional writer and edited by experienced copy editors, both qualified members of the Demand Media Studios community.
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Organizational Structure can be defined as formal pattern of how people and job are grouped in an organization. This is often presented by an organizational chart.
When managers change or develop the organization structure they are involved in organizational design. Acquisitions.
According to Organizational Change Management, acquiring or merging with another company has a profound effect on organizational structure. Thai AirAsia X Co.,Ltd | AirAsia (India) Limited DISCOVER THE BEST OF ASIA AND AUSTRALIA WITH AIRASIA See what Asia and Australia has to offer with AirAsia, the World’s Best Low-Cost Airline.
A great example of this is the AirAsia Foundation - the group's social enterprise arm. One of its key initiatives was to raise awareness about the issues of trafficking across the AirAsia network, and to give staff the right information and tools to report any suspicious activities.
As a high portion of costs was the salaries and benefits for its employees, AirAsia implemented flexible work rules, streamlining administrative functions, which allowed employees to perform multiple roles within a simple and flat organizational structure.