Organization Structure

All organizations have some form of structure which should facilitate the implementation of strategy and the achievements of objectives. In simple terms an organization structure can be defines as an established pattern of relationships among -the individuals, groups and departments within it. Although this pattern can be changed from time to time, the structure of the organization is relatively static framework within which process such as communication, leadership and decision making takes place. organization structure is concerned within which the way work is divided up and allocated, and how coordinated to achieve objectives is described as an organization's basic structure and in some organizations it will be illustrated in the form of a chart.

Types of Organizational Structures

Entrepreneurial Structure

A small organization is likely to have little in the way of formal structure, because the owners or managers can deal with most things on a personal face to face basis. It might be said to have an entrepreneurial structure, whereby everything revolves around one or a few central decision makers.

Functional Structure

The most common form of structure adopted when an organization has outgrown the entrepreneurial one is the functional structure. This divides the organization up into its main activities or functions (production, Sales, accounting and so on) and places manager in charge of each function under the overall control of the owner or a senior manager' This form of organization has a number of potential advantages, including: efficient use of specialized resources; and a career structure that enables people to advance within their functional specialism.

Divisional Structure

Example: Product base division:
This is a name, a sign or a symbol which helps to identify a product from other similar products. A manager is appointed in charge of a product or a brand and he & his subordinates are responsible for their products and brand performance.

Advantages:

• Better communication and co-ordination.
• Clear responsibility for the performance of products and markets.
• Specialization can be developed. (A sales person who is handling a particular type of hardware can develop knowledge in technical side and deliver a better service)

Disadvantages:

• There may be too many managers increasing the organization cost.
• There may not be a proper coordinated approach with regard to targeting customers. The same customer may be approached by different sales people of the company.

Geographical Based Structure

A manager is appointed for each region and he/his subordinates are responsible for all the organizations activities in that region.

Advantages:

• Large organization needs such a structure to operate in many areas successfully
• TransPort cost are minimized
• Better controi over pedormance
• Very fast & good decision making
• Regional taste and preferences can be effectively carried

Disadvantage:
Cost will be high due to high degree of duplication of activities (Example: more sales reps, accounts executives, show rooms, etc.)

Matrix Structure

Matrix structure seeks to add flexibility and co.ordination to traditional vertical hierarchy. One way of doing this is to create project teams made up of members drawn from a variety of different functions or divisions: each individual then has a dual role, as he/she maintains functional/divisional responsibilities. As well as memberships of the project. The matrix structure is sometimes appropriate for large multi- product companies which have significant interrelationships between their various operating units. If implemented this form of structure can:

• Help to improve decision making by bringing a wide range of expertise to problems
• Improve lateral communrcation and co-operation between specialists
• Most suitabie for IT Projects