business organization

 Introduction
The most fundamental reason that explains the existence of any business organization is
its objective to make profits. As such, organizations seek to create good environments for their
management and workers in order to maximize their productivity. Moreover, for the objects of
any organization to be realized there must exist mechanisms through which duties and roles are
managed. These mechanisms define the organization structures. In general there are various
organization structures namely, Functional Structure, Divisional Structure, Product Structures,
and the Matrix Structure just to mention a few. In this paper, the objective is to compare and
contrast these organization structures, to evaluate how organizational functions influences and
determines an organizational structure, and to explain how organizational design helps determine
which structure suits an organization. In addition, in order to get a better understanding of these
objectives this paper will use the Bakers Delight organization structure as its case study.
Organization structures
At bakers Delight, the franchisee organization structure has enabled the brand name to
diversify all over Australia. More so, that original business still ensures that any franchise
operates at the set standards. For example the original business conducts routine checkups and
offers training for startups for the first six weeks in operations (Richard Plunkett, F. Attner, &
Allen, 2011).
Franchisee organization Structure in comparison to the Functional and matrix Structures
A franchise Organization Structure avails a virtuous business channel to upcoming and
aspiring businessmen because of its well-recognized brand name. In essence, the parent company
assumes the obligations of training the individual franchise owner so that they can match the
already set standards. As such, the parent company dictates the operations of the subsidiaries
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Sample: Management - Organizational Structure
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and as such specifies on what franchise owners can and/or cannot do, except when it comes to
choosing their internal business structure (PaperCut Software International Pty Ltd., 2012).
On the other hand, the Functional structure mainly focuses on organizing the employees
into numerous departmental categories. This is the most common form of organization structures
since the organization divides the departments on functional basis. For example most
organizations accounting, production, and quality control departments. As such, the organization
structure tends to assume the same structure as well. On this note, this structure enhances a close
association, support and sharing of knowledge and experience among employees. Accordingly,
this structure may be disadvantageous as it may create rivalry and autonomy among the existing
departments in the organization ( Anand & Daft, 2007).
Similarly, the Matrix organization structure is a crossbreed of both the functional and
divisional organization structures. As such, it successfully forms independent departments for
each product and the target market. In this sense the Matrix organizational structure is more
flexible and incorporates only the benefits of either the divisional or functional structures.
However, in this organizational structure the operations cost are high as it will require the
existence of both the functional manager and the production manager (Cummings & Worley,
2007).
On this note and as has been stated earlier, under the franchise structure the main
objective of the parent company is retain its brand name as is or to better it. Accordingly, the
parent company gains more profit and serves large geographical zones through the franchises.
Whereas it has supervisory roles, it does not need to conduct day to day or dictate internal
organization structure for its subsidiaries as is the case at Bakers Delight.
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How Organizational Functions Influences and Determines an Organizational Structure
Generally, a business will have departments as it grows. This is dictated by the
independent roles that each department has on the daily running of business. For example, a
business will mainly have the Finance department, productions, quality evaluations; logistics just
to name a few. Each of this department is delegated for independent duties but they must work in
corroboration in order to attain the overall objects of the organization. Under the Functional
structure, there exist various levels of governance, employees’ level. In this level, the structure
ids determined through experience and knowledge thus creating departments such as the
marketing, finance, human resources, and operations departments. Further above, there is the
second level which includes the management functions of the organization such as the
operational managers, and the executive managers. Lastly,