The Three Types of Organizational Structure

The Three Types of Organizational Structure - 1 Professor...

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1 Professor Miller MGT 4471 17 April 2011 The Three Types of Organizational Structure, Their Advantages and Disadvantages and the Four Basic Elements of Organizational Structure Organizational structure is the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals. (C.I. Barnard) The purpose of organizational structure is one of control: to control the way people coordinate their actions to achieve organizational goals and to control the means used to motivate people to achieve these goals. Organizational structure depends on the company and or the mission. This structure helps organizations to identify the roles and responsibilities of the members of the department, work group, or organization. A good organizational structure will allow people and groups to work effectively together while developing hard work ethics and attitudes. An organization’s structure determines how employees are grouped together and also determines the firm’s successfulness. It is very important to choose the right structure for an organization because they are all different. I personally picked this topic because this will help any person who is trying to open there own business or anyone who is trying to improve their business. This topic relates to the class because it deals with the three general types of organizational structure and also about the basic elements of an organizational structure. The three general types of organizational structure are functional, divisional, and matrix. Organizational structure is how the workforce of an organization functions. Organizational
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2 structure varies from one organization to another. The four basic elements of organizational structure are departmentalization, span of control, formalization, and centralization. The first organizational structure I would like to talk about would be the functional structure. Functional structure is a design that groups people together on the basis of their common knowledge and experience or because they use the same resources. Functional structure is the foundation of horizontal differentiation. An organization groups tasks into functions to increase the effectiveness with which it achieves its principal goal: providing customers with high-quality products at competitive prices. (Child) In a functional structure, employees that have similarities in the work place work together into departments. The functional structure was designed on the perception that high specialization and high control yields high efficiency. Marketing, sales, human resources and productions, are all example of functional departments. Functional structure develops because it provides people with the opportunity to learn from one another and become more specialized and productive. In functional structure since people are put into groups, they can learn the most resourceful techniques for performing a task, or the best way to solve problem, from one another. In
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This note was uploaded on 11/01/2011 for the course MGT 4471 taught by Professor Miller during the Fall '11 term at Troy.

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The Three Types of Organizational Structure - 1 Professor...

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