Two Types Of Organizational Structure

The structure of an organization is the sum of total ways in which it divides its labour into distinct tasks and then achieves coordination among them. (Mintzberg, 1979). An organization can be structured in many ways depending on their objectives. An organizational structure consists of activities such as task allocation, coordination and supervision which are directed towards the achievement of organizational aims. (www.wikipedia.org)

Businesses require structure to be a successful money-making venture. Designing an organization structure helps the leadership identify what caliper and type of employees that needs to be hired into the organization. With this in mind it is also important that employee responsibilities are clearly defined. Each member needs to have a job description and each job is a needed and has its own slot on the company’s organizational chart.

Organizational structure determines how activities such as task allocation, coordination and supervision are direct towards the achievement of organizational goals. It can be considered as the viewing class through which individuals see their organizations and itsenvironment. The structure of the organization can be in different forms depending on

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.”

Having organizational structure also entails having what is called an organization chart. An organization chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. Sherill believes you need an organization chart so that you are aware of who to report to. Where Sherill is currently employed, has not had anything set up this way in a few years. People are not sure who they are to report to and often report to whoever they feel like. She has seen a few employees leave the company for other jobs because they felt that their job lacked structure and it was difficult for them to work in a place like that.

Every type of company or organization that exists operates with a certain organizational structure. However, the organizational structure is tailored to best meet the needs and services of the company. Organizational structures are used as a means of communicating how business will take place within an organization. The structure of an organization is important to the main areas that make an organization function effectively. Organization functions and designs determine the organizational structure. Memphis City Schools has a horizontal organizational structure. Although a horizontal structure exists as the overall structure at the executive level, a vertical structure is also in place at the management/staff level.

Organizational structure helps to segregate these different capabilities with specific powers and responsibilities and also determine the chain of command to carefully demonstrate to each member what the organization seeks to achieve with the resources available.

The basic organizational structures are as follows: 1. Functional structure In functional structure, as the name suggests, organizational units are formed according to different functions involved in organization. For example, in an organization employees can be grouped into different functions like payroll, accounting, national sales, purchasing, advertising, market research etc. In such type of structure individual units perform activities that are specific to their function and hence such structures type of structure develops expertise in long run.

for the oversight of delegating processes and expected outcomes. Without structure there is a potential for chaos to ensue, communication to be inhibited, thereby preventing goals from getting accomplished. Organizational structure is an important tool managers use to increase efficiency within the departments (Sullivan, 2013) and is an important line of communication for employees at the department level as well as throughout the organization. Every

An organizational structure is a framework set for certain activities at the work place like coordination of activities, supervision of employees and task allocation to be organised (Mills, 2005).

Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure:

According to Bethel University, 2011, organizational structure is the organization’s design or set up for how it will function in order to meet its necessary goals and objectives. The structure of an organization may include a level of hierarchy for stakeholders, management staff, and front line employees. It is imperative that an organization has established its structure to ensure there are open lines of communication and well established guidelines for all involved. Communication is a very important piece to the organizational structure because it has the potential of directly affecting employee behavior and performance. Lack of effective communication processes can lead to financial losses for organizations.

“Divisional structure is known by the approach of having similar skills and resources grouped together into divisions” (Draft, 2013, p.318). This occurs when a company has common goals that the company wants to achieve. This allows all skills and departments to come together and produce the goal there are looking to achieve. In this type of structure not one person is viewed as important than the next one, because it takes everyone to work together to produce the outcome the company wants to achieve. “The matrix structure uses both functional and divisional structures to run an organization” (Draft, 2013, p.321). This allows the company to

Organisational Structure – It is a structure which is used to elaborate ranking in an organisation. It is also define as an organizational structure which defines how activities such as task portion, division and guidance are directed towards the achievement of organizational purposes.

Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. (Investopedia, 2017) , It determines the guidelines of activities such as task distribution, coordination, and supervision to reach and achieve organizational objectives. The organization can be structured in various ways, depending on its objectives.