Economics

Introduction
This paper will critically analyze the organisational architecture of Norwegian Cruise Line (NCL). NCL is the worlds terce largest cruise operator that cruises to over 200 destinations worldwide. The main localise of the analysis would be targeted at the decision rights element of the organizational architecture.
Organizational Architecture
Based on publicly available randomness from NCL (2011), NCL is a highly primaevalized organization with a one(a) form organizational structure. There argon 9 study functional specialities (see appendix) and major decision makings be held within the central organization (CITE). NCLs marine operations is divided into both main geographic regions where the Star Cruises operates 7 ships in the Asia peace-loving region and 11 cruise ships in the North and sulphur America, Hawaii, Caribbean, Alaska, Europe, Mediterranean and Bermuda (CITE: GHK).
Assessment of the Organizational Architecture
There is no doubt that the current structure NCL is employing has resulted in better coordination and higher(prenominal) expertise within the respective functional areas. Nevertheless, there are several setbacks associated with its current structure.



Firstly, there is a high hazard cost for senior management to invest judgment of conviction in making operating decisions and coordinate departments as there are 9 departments in total at NCL whereby managers should devote their time in strategic planning of the organization.
Likewise, the process of communicating crossways departments become cumbersome and time consuming which could result in lengthen delays for consumers. Another risk of this structure is that employees are to a fault engrossed on their functional specialities and lose track of the gain of organization as a whole. *(CITE: TB) claimed that functional subunits are likely to work best in smaller firms with a peculiar(a) number of products operating in relatively stable environments. For a big organization like NCL, the U-form structure seems insufficient and...If you emergency to get a full essay, order it on our website: Orderessay



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