Introduction to Organization Structure

2492 Words Nov 1st, 2012 10 Pages
Introduction to organizational structure
An organization structure refers to an arrangement of people, relationship and responsibilities in carrying out company activities to achieve goal. In addition it also can define as how a people in the organization are group together and to whom they report. Formal structure is needed for larger organization that decisions have to be made about the delegation of various tasks. In an organization structure clearly indicate and separate between the work activities which define by their job role. In good organization structure should explain the relationship of authority who reports to whom and for managers, who reports to them. An organization structure usually illustrated graphically in an
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Another benefit of functional organization structure is coherent chain of command. For example, referring to above chart Account and payroll fall under purview of Finance department. A clear chain of command is needed, this is because it creates standard operation procedures, besides established consequences also enhanced accountability.
Another advantages of functional structure is it cans expedited decision making. This is because normally group decision making will slow down progress on project due to the diverse perspectives involved. But in this structure because people have similar professional and educational background the decision making process will be much easier. In addition functional structure also allows work to be done by qualified and skilled individual in the area concern.
Hence, another advantage of this structure is that it reduces cost by reducing duplication and use of resource in the organization.
1.2 Disadvantage of Functional Structure
Functional structure also have disadvantage. The disadvantage of functional structure is because functional structure separate by function, as a result employee having a very little understanding or concern for other area instead of their own area. Because of this separation there is a barrier in communication and overall cooperation and coordination. Beside that in this structure individual focus is rather than a company focus.


2.0 Geographic Structure
Geographic structure often use by large company that
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