Organizational Structure Essay

1804 words - 7 pages

OrganizationalOrganizational structure is needed in organizations to arrange employees and their jobs in a certain category to help meet business goals and needs. Procedures are established that assign responsibilities for various functions. These decisions help determine organizational structure (Madapusi, 2008). Organizational structure allows greater effectiveness in organizations. Different types of organizations such as Baker Hughes Drilling Fluids, Atlanta Memorial Hospital, Doyenne Constructors, and Interfaith Ministries have a horizontal or vertical structure to determine how different levels of management will delegate (Madapusi, 2008).Large Vertical Structure Organization With Network BasedAn organization such as Baker Hughes Drilling Fluids is categorized in a hierarchical level where authority figures are the glue that holds the company together. Baker Hughes personnel are broken down into different departments such as human resources, finance, payroll, operations, and marketing departments. Within these departments all personnel have a subtitle such as HR Analyst, Controller of Finance, Department Administrator SR Payroll, Gulf Coast Operational Manager, and Operations Marketing Account Manager. Managers are able to delegate to subordinates at lower levels within the different companies allowing employees to perform productively (Bateman & Snell, 2007). Personnel at Baker Hughes Drilling Fluids have direct reports who eventually have to report to the Chief Executive Officer (CEO) who has to report to the Board of Directors (Madapusi, 2008).Baker Hughes Drilling Fluids is set up in a vertical structure in which corporate governance is needed to ensure the company's goals are being met. Corporate governance is the set of customs and policies that affect the way a corporation is directed and controlled (Bateman & Snell, 2007). Corporate governance is an important factor to an organizations success (Madapusi, 2008).Baker Hughes can be referred to as a divisional organizational as well. The company is divided into different units and is spread around by geographic locations. Each division has its own group of departments needed to function as an organization. For example, Baker Hughes Drilling Fluids has its own marketing department for the North American Region. This set of sub managers have direct reports who will report to the CEO and Board of Directors. Another division will have a separate marketing division whom will have direct reports, but will eventually report to the same CEO and Board of Directors (Madapusi, 2008).Baker Hughes is different from other organizations in a way of decision making. Other companies may consist of several directors in each department, but Baker Hughes consists of sub-managers who move up to direct reports, all leading to top management teams known as the "VP"'s , who then report to the CEO who reports to the Board of Directors who are the end of the decision making chain. For example, each...

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