Vertical Collaboration Vs Vertical Coordination

Organizational structure indicates the company's formal reporting relationships, procedures, controls and authority, & decisions making process. An organisation's strategy is its plan for the whole business that sets out how the organisation will use its major resources. An organisation's structure is the way the pieces of the business fit together internally. It also covers the links with external factors such as partners and other parties. For the company to deliver its plans, the component of the structure must cooperate with each other

An organization must align its strategy and structure to allow itself to achieve performance improvements over time. The four different structures, simple, functional, multidivisional, and matrix, are all suited to allow companies with different strategies to succeed but the company must decide which of these is correct for itself. A small start-up company will overburden itself with excessive cost if it seeks to implement a functional structure because it clearly will not have the talent on hand to create whole departments of HR employees or accountants. On the other hand, a company that grows to become a large multi-national

According to Alfred Chandler (1977), the structure involved ‘administrative coordination’ can bring higher profit, productive and lower cost. He describes it as “The visible hand”. He believe the traditional will be gradually replaced by the multi-unit ‘modern business enterprise’ The top of the mine-and-staff structure based organization is the top management, then middle management, lower management and foremen, supervisors and so forth. (See figure 1) The command send from the top manager to the middle manager, then the mission will be allocated to the lower level until to the front-line staff. A person in a line position is directly involved in achieving the basic objectives of the organization. A person in a staff position, by

Having the appropriate structure is vital for an organisation or business to meet its aims and objectives. A business may be structured by:

The tools available in firms today allow for vertical and horizontal collaboration to happen quickly but this does not mean that external collaboration should be welcomed in firms as collaboration could be the tool necessary to improve or complete certain products or services as well as marketing and administration as you will find out more.

Alexis Writing (n.d.) states, “organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress towards accomplishing these goals. There are three main types of organizational structures: functional, divisional, and matrix structure.”

The structural perspective aims to defeat lack of activity periods, doubts and dissatisfaction of employees about their role in works and companies in order to make organizations achieve short and long-run goals and results, increases their efficiency and maximize performance through specialization and division of labor and suitable forms of coordination, control and working best ways. Overall, the structure frame is the key element for profitable and sustainable organizations. Organizations works best when rationality prevails and they are ready to anticipate and deal with environment issues and other uncertainty problems. As mentioned, the main goal is create coordinate, balance and efficiency organizations which can thrive for many profitable years. Therefore, structure will work as a “blueprint” (Bolman and Deal, 2008) inside organizations. First of all, it is not possible to take one structure as ideal, whereas the structures are different from organization to organization, because each one has their own identity and strategy. Today, all of them face pressures of globalization, competition and other environment pressures outside and inside the organizations, therefore, organizations cross times where they have to “rethink” and reconsider new approach, perhaps through restructuring. These restructuring pressures, conducted by elements of the company environment should be considered as a main source of reaction to fight the

Every organization was established to meet needs or goals, for example, to provide goods or services. Organizational structures may form in many ways; these were influenced by factors such as the purpose, size of the company or the complexity of the tasks it performs, and the external environment and culture. Moreover, the products, services or the location of the organization will also determine which structure was the best. The structure chosen will govern the way in which the organization operates and could occur either positive or negative effects. Below are some types of organizational structure that usually see.

Organizational structure in today’s complex multi-dimensional organizations is the connection that holds the infrastructure together to achieve the organizations goals. It is the patterns or arrangement of groups of jobs within an organization. It is also a process that requires organizational re-structuring as the company grows.

Social structure builds the image of the organization in the eyes of the customers so that the organization must build its image to get success and puts various kinds of social supports to the system managing authority. Social supports from various governmental or nongovernmental organizations, political influences, media, and the public (Kang et al. 2016).

Organizational structure is the framework around the different groups which is organized. It is like a manual that tells your organization and the customers how the organization operates and what is obtained in order to keep the business moving towards success. Structure gives the customers a clear guideline on how to proceed and binds them together. It is important to deal with structure when the organization is developing and think about the flow at the beginning when the organization has begun. As an organization grows, changes, and takes on challenges, so should the manager and the groups that are willing the take on the tasks.

According to Alex Writing, Organizations are set up in a way that it will accomplish the goals set by the organization and these structures can either help or becomes a hindrance in an organizations progress. He furthered mentioned the three main types of organizational structure being the functional structure, divisional structure and the matrix structure. (Source: Different Types of Organizational Structure by Alex Writing, (N.D.), Retrieved: 23January2016 from: http://smallbusiness.chron.com/different-types-organizational-structure-723.html). Let us define these three main organizational structures mentioned by Alex W. and how they become a weakness of an organization. First, let us take a look how a functional structure works. A functional structure according to Julie D., is one of the most common organizational structure, the organization groups the employees according to specialized or similar set of roles or tasks. (Source: Functional Structure Organization Strength & Weakness by Julie Davoren, (N.D.), Retrieved: 23January2016 from:

Coordination is the process of integration of individual parts of the organization’s activity to achieve common goals, coordination is like the addition to the division of labor. This is not true, because when work is distributed, division and break-up of tasks happens, while coordination is an integration of tasks, coordination combines together workers with different but interrelated work tasks in order to achieve the organizational goals, It is important for everyone to realize that while coordinating it is necessary to align all company’s operations so that the company would gain success as soon as possible, proportionally reconcile certain things and activities and to adapt certain measures to achieve the objectives.

Stability: - due the business development any business can face any changes of work progress, formal organization provide stability to an organization, so a business enterprise can keep operating in spite of changes in work force.

Organisational structure is to ensure effective communication between various parts of the company, as well as to increase co-ordination between different departments.