Role of Organizational Structures in Supply Chain and Operational Management

Abstract

To determine the value of having effective organization structures in operation activities in an organization. It is important to understand the context of the application organization structures in operation management. Basically, the role of organizational structures is to enable strategic change and improve business performance in several dimensions. Efficient and effective organization structures helps in rapid delivery of top-quality communication, meeting the mission and vision of organizations, product development, supplier development, supports organizations in meeting high standards in customer care, and it provides the means to compress design and development times in order have the competitive advantage in the market. Good organization structures helps to launch new products more frequently, to explore and enter new markets faster, and to seek new distribution channels. All of these dimensions can give companies a powerful competitive edge. Failure to have effective, well organized structures in operation management the company cannot realize business objectives in today’s competitive, often global environment. To determine the role played by organizational structures like coordination, specialization, control and so on .It is important to first understand the context of the organization structures applications, history and roles. The first part of this chapter provides a review of the evolution of the role and application of organization structures, leading to its role in today’s competitive markets. The second chapter will tackle the roles of organization structures and advantages of effective management in organization’s operations.

Keywords: Operation Management, Organizational structures, Formalization, Lean production