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Organizational Structure

Share this page: Share Webmail / Other Organizational structures differ in terms of departmentalization, which has been traditionally categorized as either functional or divisional. Functional Organizations An organization with a functional structure groups jobs based on similarity in function. In an organization of this type, an individual is likely to have a specialized role and handle a large number of transactions. Functional structures are ideal for a stable work environment, and does well to promote efficiency. Divisional Organizations An organization with a divisional structure has departments that represent the unique products, services, customers or geographic locations that the company is serving. In this structure, employees are more like generalists than specialists, and may be in charge of performing many different tasks in service of the product. This type of structure demands a higher calibre of employee, but is able to be more agile and adaptive to change. Matrix Organizations Matrix organizations are like a hybrid between the traditional divisional and functional structures. This is achieved by pooling employees together from different departments in order to form a product, or functional, team that is lead by a separate manager. In this style, the department manager has control over matters related to company policy, while product managers have control over product-related matters. This has the advantage of allowing the organization to maintain the detailed attention to specific products/functions afforded by the functional style, while increasing communication across departments. The disadvantage is that an employee may end up reporting to two or more managers, which can lead to conflict. Boundryless Organizations Boundryless organizations eliminate traditional barriers between departments as well as barriers between the organization and the external enviornment. This can be achieved by outsourcing non-essential functions to other companies, or by creating strategic alliances with other companies in order to collaborate on specific business initiatives. This type of structure is obviously very lean, agile and responsive. However, the dependence on third parties creates a vulnerability. Learning Organizations A learning organization is one whose design actively seeks to acquire knowledge and change behaviour as a result of newly acquired knowledge. In learning organizations, experimenting and learning new things are the norms, and the procedures and systems in place for that organization reflect this. The above information is made available through: CreativeCommons.org Derivative by Athivia College (2010), Original materials: Collins, Karen., Exploring Business. Retrieved Apr 8, 2010 from http://www.flatworldknowledge.com/node/123782 . Collins, Karen. Exploring Business. 1969 . Flat World Knowledge. 8 Apr, 2010.