Organisational Structures

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Organizational structures


The organizational structure is network of relationships in an organization. There are three types of organizational structure.


Functional Organization


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The organizations planned along the functional lines are called functional form of an organization. It places people together, people who are applying related technology, skills to similar tasks. These organizations are divided according to various functions like finance, marketing, production, which are further divided into specific fields like production is divided in quality, tools, maintenance, production etc.


In this type of organization there is usually one boss of each departments having authority to take all the decision for his own department. He has various subordinates who report directly to him. There is unity of command and clear demarcation of authority and responsibility.


Divisional Organization


The large organizations having various products or divisions adapt this form of organization. The organization can be divided in any of the three ways


Product Based Division


Geographical Based Division


Costumer facing Based Division


The organization is divided first according to the product, area or costumer and then each division is further divided in the functional form. This type of organization has independent division and needs less co-ordination between different divisions.


For example any General Electrical have various divisions of electrical appliances, BPO, machines, Finance each having its own structure and independently working under one group GE.


Matrix Organization


Various large organizations have this kind of an organizational structure with dual authority. It is a blend of divisional and functional form of structures. It is successful in those organizations, which have various projects, developments, and products, along with regular routine work or where a large number of different types of products are made less than one roof.


In this form of an organization there is crises-crossing line of authority and responsibility. The organization is divided into functional department along with divisions.


For example there are five different functional department of finance, production, R & D, marketing, Personnel and Two divisions of Product A and Product B. So all the people in the various departments will have dual control of the functional managers and divisional managers.


The best fit of an organization depends on the size, task, people, and market, of the business.





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