ORGANIZATIONAL ORGANIZATIONAL STRUCTURESTRUCTURE

Prepared By : Khushal Qaem :Roll No. 92

&

Khalid Shinwary :Roll No. 08

Contents

Why have Structure?Why have Structure? Why is Structural Choice Important?Why is Structural Choice Important? Types of Organizational Structures.Types of Organizational Structures. ReferencesReferences

Why Have a Structure?

All businesses have to organise All businesses have to organise what they do.what they do.

A clear structure makes it easier to see A clear structure makes it easier to see which part of the business does what.which part of the business does what.

Structural Choice is Important Because

it focuses attention on particular areas shapes how resources will be used directs communication flows defines control and other processes illustrates people’s roles relative to others’

roles

Types of Organizational Structures Simple StructureSimple Structure Functional structureFunctional structure Divisional structure Matrix structure

Simple structureThis structure is most common in smaller organizations.The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. useful for new business as the founder control growth and development.Is best used to solve simple tasks.

Functional structure:

It is appropriate for medium sized firms, It is appropriate for medium sized firms, with several related product lines.with several related product lines.

Employees tend to be specialist in the Employees tend to be specialist in the business functions, such as marketing and business functions, such as marketing and finance etc.finance etc.

Functional Structure

V P M arke tin g V P F in an ce

C ou n try A C ou n try B

P rod u c t 1 P rod u c t 2 P rod u c t 3

V P O p era tion s V P R & D V P L eg a l is su es

C E O

Top Management

Manufacturing Finance Sales HR

E.g.-1

E.g.-2 Function A Function B Function C Function D

Divisional Structure

the divisional structure groups each organizational function into a division

It is appropriate for a large corporation with many product lines in several related industries.

Employees tend to be functional specialist organized according to product market distinction.

It has 2 Types : Geographic & Product Basis

Division Structure - Geographic

A d m in /F in an ce

V P fo r th e A m ericas V P E u rop e V P E . A s ia

M arke tin g O p era tion s

A u s tra lia /N Z In d on es ia Is lan d s

V P A u s tra las ia

C E O

Division A Division B

Division C

Division D

Division Structure - Product

D IV IS IO N A L S TR U C TU R E (B Y P R O D U C T L IN E S )

F R A G R A N C E S S K IN C A R E P R O D U C TS H A IR C A R E P R O D U C TS O TH E R P R O D U C TS

C O S M E TIC S C O R P O R A TIO N

Division ADivision B Division C Division D

Matrix Structure

It groups employees by both function and It groups employees by both function and product. product.

This structure can combine the best of both This structure can combine the best of both separate structures. separate structures.

Employees from Different Depts. are Employees from Different Depts. are employed for the same assignment or employed for the same assignment or project.project.

Matrix Structure

Matrix Structure 2

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from a near-war. Organization Science, 18, 3, 455-477.from a near-war. Organization Science, 18, 3, 455-477. Lim, M., G. Griffiths, and S. Sambrook. (2010). Organizational structure for the twenty-first century. Presented at the Lim, M., G. Griffiths, and S. Sambrook. (2010). Organizational structure for the twenty-first century. Presented at the

annual meeting ofannual meeting of Galbraith, J., (1973) Designing Complex Organizations, Reading, Massachusetts, Addison-Wesley. The Institute for Galbraith, J., (1973) Designing Complex Organizations, Reading, Massachusetts, Addison-Wesley. The Institute for

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