Describe the types of the organizational structures managers can design and explain why they choose one structure over another.

1. Remylyn Cajes II-B
Describe the types of Organizational Structure
Organizational structure is refers to the way that an organization arranges people and jobs
so that its work can be performed. There are three type’s organizational structure functional
structure, divisional structure and matrix structure.
According to Julie Davoren, A functional structure is one of the most common
organizational structures. Under this structure, the organization groups employees according to a
specialized or similar set of roles or tasks. While functional structures operate well in stable
environments where business strategies are less inclined to changes or dynamism, the level of
bureaucracy makes it difficult for organizations to respond to changes in the market quickly.
According to Fahad Usamani, A functional organization structure is a hierarchical
organization structure wherein people are grouped as per their area of specialization. These
people are supervised by a functional manager with expertise in the same field. This expertise
helps him effectively utilize the skills of employees, which ultimately helps him in achieving the
organization’s business objectives. The organizational chart for a functional organization
structure shows the president, vice president, finance department, sales department, customer
service department, administration department, etc.
I agree to Julie Davoren and Fahad Usamani, that people are grouped as per their
specialization because it is much okay to be assign in the task that I have knowledge. I can relate
it to myself. When I was still working, my manager assigned a work for me that he knows that I
was capable of doing it.
According to Surbhi S, divisional structure is defined as an organizational structure that
clubs together various functions on the basis of product lines and regional divisions. Further,
each division of the organization has its own essential resources and functions like production,
marketing, purchase, human resource, etc. In this type of organizational structure, the divisions
are headed by the general manager who controls the regular business activities.
According to Shawn Grimsley, A divisional structure is a manner of designing an
organization so that it is split up into semi-autonomous units. While the divisions have control
over their day-to-day operations, they still are answerable to a central authority that provides the
overall strategy for the organization and coordinates its implementation among the divisions.
I agree to Surbhi S and Shawn Grimsley, that it is a manner of designing an organization
so that it is split into semi-autonomous, for instance, if I have a paper production business. I
should divide my workers from production, marketing, etc. so that the work my get faster and
they will be headed by my manager to controls the regular business activies.
According to Fahad Usmani, The matrix organization structure is a combination of two or
more types of organizational structures, such as the projectized organization structure and the
functional organization structure. The matrix organization is a blend of the projectized and the
functional organization structures.
According to Ashim Gupta, the matrix structure superimposes the product structure
laterally over the functional structure. The result is creation of dual line of authority that is
balanced by top managers. It is formulated with the desire to maximize the strengths and
minimizing the weakness of the both structures.

2. I agree to Fahad Usmani, the matrix organization structure is a combination of two or
more types of organizational structures. It is because it can help them to learn from one another
and become more skilled and productive.
Hence, this three organization structures functional structure, divisional structure and
matrix structure are important to a manager. To become a good manager, I should know any of
these structures.

3. References
http://smallbusiness.chron.com/functional-structure-organization-strength-weakness-60111.html
https://pmstudycircle.com/2012/08/what-is-a-functional-organization-structure/
http://keydifferences.com/difference-between-functional-and-divisional-structure.html
http://study.com/academy/lesson/organizational-divisional-structure-advantages-disadvantages-
example.html
https://pmstudycircle.com/2012/08/what-is-a-matrix-organization-structure/
http://practical-management.com/Organization-Development/Matrix-Structure.html