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organizational structures


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  • 1. 3/23/2014 ORGANIZATIONAL STRUCTURES Presented by Anusha Adhikar Vidya Dhamija BBA 1 Semester
  • 2. DEFINING ORGANIZATIONALSTRUCTURE  It defines authority, responsibility, and unity of command.  Organization structure helps to achieve organizational goals by grouping jobs, defining relationship between positions as well as who takes the responsibility in organization.  It describes each of the five forms of departmentalization  The formal arrangement of jobs within an organization.
  • 3. FORMS OF DEPARTMENTALIZATION Functional structure Divisional structure Hybrid structure Matrix structure Virtual structure
  • 5. FUNCTIONAL STRUCTURE  Grouping activities on the basis of the functions of an organization is called functional departmentation.  The decision making is centralized at the top of the organization.  It is widely and easily used by those organizations which deals with one product.
  • 6. ADVANTAGES  Specialisation – each department focuses on its own work.  Accountability – someone is responsible for the section.  Clarity – know your and others’ roles.  Co-ordination.  Closed communication could lead to lack of focus.  Departments can become resistant to change.  Gap between top and bottom level. ADVANTAGES AND DISADVANTAGES DISADVANTAGES
  • 7. DIVISIONAL STRUCTURE  It is suitable for medium sized to big companies, expanding geographically or on customer base. PRODUCT CUSTOMER GEOPRAP HI-CAL DIVISIONAL
  • 9. PRODUCT STRUCTURE  It is suitable for extremely large, complex and multi- product organization .  In this division requires the organization’s work to be divided on the basis of its product.  Each division is responsible for its own performance and profitability.  It is based on output of the organization.  With the divisional structure, each product department has its own functional specialties.
  • 10. ADVANTAGES  Clear focus on market segment helps meet customers’ needs.  Positive competition between divisions.  Better control as each division can act as separate profit centre.  Performance can be compared and analyzed  Co-ordination at high level is reduced.  Duplication of functions (e.g. different sales force for each division).  Negative effects of competition.  Lack of central control over each separate division.  Problem in decision- making and control. ADVANTAGES AND DISADVANTAGES DISADVANTAGES
  • 11. GEOGRAPHIC DIVISION Corporate office Northern division Eastern division South west division Canadian division International division
  • 12. GEOGRAPHIC DIVISIONS  It is common organization that operates over wide geographical area such as banking, insurance, transportation firms.  In this activities are grouped area-wise into zones, divisions, sections and branches on the basis of the distinct needs, tastes and facilities in a country.
  • 13. ADVANTAGES  Serves local needs better.  Positive competition.  More effective communication between firm and local customers.  Conflicts between local and central management.  Duplication of activities and functions at different region. ADVANTAGES AND DISADVANTAGES DISADVANTAGES
  • 15. CUSTOMER DIVISIONS  The activities are grouped according to the customers the organization serves.  With this division, each department contains individuals who perform the necessary functions for a specific type of customer.
  • 16. ADVANTAGES  Customers’ needs and problems can be met by specialists.  Beneficial for organization that serves diff. type of customer.  Limited view of organizational goals  Special treatment is required from various customer department .  Special facilities and manpower for certain customer group may be under employed. ADVANTAGES AND DISADVANTAGES DISADVANTAGES
  • 18. HYBRID STRUCTURE  It is form of departmentalization that adopts both functional and divisional structure at the same level of management.  This structure is adopted to derive the benefits of economies of scale, and efficiency in resource utilization while the divisional structure is created to focus on product and services.  This structure have greater staff authority when compared to the divisional structure.
  • 19. ADVANTAGES  Achieve a specific competency and economics of scale in functional areas with a focus on product , service and market.  Facilitates adaptability and flexibility in handling diverse product and services.  Develop large staff in the corporate level .  In case , it require co- ordination between a division and a corporate functional department may be slow to respond . ADVANTAGES AND DISADVANTAGES DISADVANTAGES
  • 21. MATRIX STRUCTURE  Matrix organization is also referred to as a grid organization or project or product management organization.  It can be termed both functional and divisional at the same time.  It has two chains of command- horizontal and vertical
  • 22. ADVANTAGES  It facilitates decentralization Of decisions.  Brings horizontal co- ordination.  Effective use of human resources.  Individual become specialist in two areas(function and product).  Administration cost are higher.  Individual reports to two bosses so they are unclear .  Individual engrossed with maintaining good relations. ADVANTAGES AND DISADVANTAGES DISADVANTAGES
  • 23. VIRTUAL STRUCTURE  An organization that consists of a small core of full-time employees and that temporarily hires specialists to work on opportunities that arise.
  • 24. Thank you 