DQ's8 - Identify the main types of traditional and...

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Identify the main types of traditional and horizontal organization structure. Using an organization of your choice as an example, how is the structure of the organization a reflection of its environment (including national culture), its goals and competences? Types of Organizational Structures There are different types of organizational structures and a company should choose the one that best suits their needs. Traditional Structures These are the structures that are based on functional division and departments. These are the kind of structures that follow the organization’s rules and procedures to the T. they are characterized by having precise authority lines for all levels in the management. Under types of structures under traditional structures are: Line Structure – this is the kind of structure that has a very specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line. Hence the name line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decision making, and also very informal in nature. They have fewer departments, which makes the entire organization a much decentralized one. Line and Staff Structure – though line structure is suitable for most organizations, especially small ones, it is not effective for larger companies. This is where the line and staff organizational structure comes into play. Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision making process becomes slower in this type of organizational structure because of the layers and guidelines that are typical to it, and let’s not forget the formality involved. Functional structure – this kind of organizational structure classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization. The organization chart for a functional based organization consists of Vice President, Sales department, Customer Service Department, Engineering or production department, accounting department and
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This note was uploaded on 04/04/2011 for the course MNG 500 taught by Professor Linkiden during the Spring '11 term at UMass (Amherst).

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DQ's8 - Identify the main types of traditional and...

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