Functional structureEmployees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with software engineers. This leads to operational efficiencies within that group. However it could also lead to a lack of communication between the functional groups within an organization, making the organization slow and inflexible.As a whole, a functional organization is best suited as a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost. For instance, a small business could start making the components it requires for production of its products instead of procuring it from an external organization.But not only beneficial for organization but also for employees faiths.
Divisional structureAlso called a "product structure", the divisional structure groups each organizational function into a division. Each division within a divisional structure contains all the necessary resources and functions within it. Divisions can be categorized from different points of view. One might make distinctions on a geographical basis (a US division and an EU division, for example) or on product/service basis (different products for different customers: households or companies). In another example, an automobile company with a divisional structure might have one division for SUVs, another division for subcompact cars, and another division for sedans.Each division may have its own sales, engineering and marketing departments.
Matrix structureThe matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. An example would be a company that produces two products, "product a" and "product b". Using the matrix structure, this company would organize functions within the company as follows: "product a" sales department, "product a" customer service department, "product a" accounting, "product b" sales department, "product b" customer service department, "product b" accounting department. Matrix structure is amongst the purest of organizational structures, a simple lattice emulating order and regularity demonstrated in nature.Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas. Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition. Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed. Among these matrixes, there is no best format; implementation success always depends on organization's purpose and function.
Advantagesuseful when teams are needed to innovate;when information sharing is important.Disadvantagespeople report to two or more bosses;increases structural complexity;can make it harder to work toward common goals.
2-Types Of Organizational Structure
3-Principals of Organizational Structure
4-Elements Of Organizational Structure
6-Features Of Organizational Structure
7-Key Design Questions
8-Factors influencing Organizational Structure
9-Design Of Organization Structure
10- Seven S Model
“Organizational structure refers to the
differentiation and integration of activities
and authority, roles, and relationships in the
The way in which job-task are formally
divided, grouped and coordinated is called
This 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
Is best used to solve simple tasks.
is appropriate for medium sized firms, with
several related product lines.
Employees tend to be specialist in the
business functions, such as marketing and
VP Legal issues
The divisional structure groups each organizational function into
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
VP for the Americas
VP E. Asia
DIVISIONAL STRUCTURE (BY PRODUCT LINES)
SKIN CARE PRODUCTS
HAIR CARE PRODUCTS
It is a group of employees by both function
This structure can combine the best of both
Employees from Different Depts. are
employed for the same assignment or
Division of labor
Unity of command
Principle of departmentation
Principle of authority
Span of management
Unity of purpose
Principle of flexibility
Principle of synergy
Principle of team spirit
Span of management
Delegation of authority
Organization Structure: Its
Determinants and Outcomes
Organizational Designs range from highly
structured and standardized bureaucracy to
the loose and amorphous boundary less
One end – mechanistic model.
Other end- organic model.
Clear line of authority
Application of ultimate responsibility
Proper delegation of authority
Minimum possible managerial levels
Principles of unity of direction and command
Proper emphasis on staff
Provision for top management
The key question
The answer is provided by
1.To what degree are activities
sub-divided into separate
2 On what basis will jobs be
3.To whom do individuals and
Chain of command
4.How many individuals can a
manager efficiently and
Span of control
6.To what degree will
there be rules and
The degree to which task in an
organization are sub-divided into
The basis by which jobs in an organization
are grouped together
The unbroken line of authority that extends
from the top of the organization to the lowest
echelon and clerifies who reports to whom.
The rights inherent in a manegerial position
to give orders and to expect the orders to be
The idea that a suboordinate should have
only one superior to whom he or she is
The no. of suboordinates a manager can
efficiently and effectively direct.
Centralization refers to the degree of which
decision making is concentrated at a single
point in the organization.
In this organization decision making is
pushed down to the managers closed to the
The degree to which jobs with in an
organization are standardized.
The structure of an organization may influence
various factors. These factors may be internal
or externalto the organization. Some of the
important factors are :1.Internal factors
Defining clear objectives
Determining the appropriate type of
Defining scalar chain of command
The seven S model was developed by one of
the most renowned organization, McKinsey
and categories organizational elements into
two types, namely hard or soft elements:
Soft elementsShared value
All Images-Google images
Organizational Behavior-Surpreet Ahluwalia
Organizational Behavior-Stephen P Robbins
Timothy A Judge
Organizational Behavior- L M Prasad
Organizational Behavior- Surendra Jain