ORGANISATIONAL STRUCTURE<br />TYPES AND BENEFITS<br />
DEFINITION<br />An organization is a collection of people, systems and procedures which are put together to earn profits. In order to better manage the huge resource base and assets organizations need to be in some sort of organizational structure so that it can be formed into some form and clear lines are defined in order to control and get the productive use of organization's resources. <br />
DIVISIONAL STRUCTURE<br />A divisional structure can group employees by product divisions, geographic divisions or market divisions. <br />
Divisional Structure<br />The advantages of divisional structures include higher quality products and customer service because of specialization, facilitated communication and teamwork within divisions and encouragement of hands-on problem-solving. <br />In addition, it is easier for upper management to evaluate and reward employees through the increased job accountability inherent in divisional organizational structures.<br />
FUNCTIONAL STRUCTURE<br />The benefits of structuring employees by common job titles and activities include better communication among specialists, increased teamwork and shared knowledge, and it allows for quicker decision-making<br />
FUNCTIONAL STRUCTURE<br />Advantages of organization structure are:1) More easy control over the resources because with it resources can be rationed and allocated to different units to use them to their most productive uses at micro level.2) Clearly defined reporting lines make it easy for employees to know to whom to report.3) Reduce redundancies by eliminating extra and unproductive processes.4) Stream line processes by giving it more focus and adoptive nature.5) It help to reduce costs because the controlling of various cost control centers are controlled at micro level.6) It gives focus and direction to an organization<br />
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