The document discusses different types of organizational structures used by companies, including functional, divisional, matrix, and line and staff structures. It provides details on each structure such as their key characteristics, advantages and disadvantages. Examples are given of companies that use divisional and matrix structures like Microsoft and Walmart. The organizational structure defines how tasks, coordination and supervision are directed towards achieving organizational goals.

1. An organizational structure defines how
activities such as task allocation ,coordination
and supervision are directect towards the
achievement of organizational aims.
FUNCTIONAL STRUCTURE
*Traditional way of organizing people is by function.
*Functional structure includes production ,marketing,
human resources and accounting. This function is
commonly used in most of the companies

2. Companies using functional
structure
NESTLE Airtel

3. Merits and demerits
• Benefits of
specialisation.
• coordination of
established.
• Managerial
efficiency is
increased.
•Ignorance of
organisational
objectives.
•Difficulty in
interdepartmental
coordination.
•Hurdle in
complete
development.

4. Divisional structure of organization
• A type of organizational configuration that groups together those employees who are
responsible for a particular product type or market service according to workflow.
• The divisional structure of a business tends to increase flexibility, and it can also be broken
down further into product, market and geographic structures.
Advantages
1. Development of divisional heads
2. Divisional results can be assessed
3. Quick decision making
4. Easy expansion
Disadvantages
1. Conflicts between divisional heads
2. Duplicity of function
3. Selfish attitude

5. 1.
2.

6. 1. ITC (International Trade Centre)
• ITC uses divisional structure.
•ITC is headed by an Executive Director, who reports to the Secretary General of the
United Nations Conference On Trade And Development (UNCTAD) and the Director
General of the World Trade Organization (WTO).
•The senior management committee (SMC) is made up the two executive officers and
the heads of ITC’s four divisions.

7. 2. Microsoft
•As of 2010 Microsoft has a divisional organization.
•Each division, or product group focuses on a specific line of goods and services.
•Each group has its own R&D(Research and development), Sales, and Customer Service
Staff.
Satya Nadella
Windows 8 &
Live
Windows
Server
software
Online
services
Microsoft
business
Entertainmen
t & devices
R&D R&D R&D R&D R&D
Sales Sales Sales Sales Sales
Customer
service
Customer
service
Customer
service
Customer
service
Customer
service

8. MATRIX ORAGNIZATION STRUCTURE
Definition
A matrix organizational structure is a company
structure in which the reporting relationships are set
up as a grid, or matrix, rather than in the traditional
hierarchy. In other words, employees have dual
reporting relationships generally to both a functional
manager and a product manager.

9. WALMART APPLE

10. 1. Resources can be used efficiently, since experts and
equipment can be shared across projects.
2. Products and projects are formally coordinated across
functional departments.
3. Information flows both across and up through the
organization.
ADVANTAGES
DISADVANTAGE
1. Some employees may become confused as to who their
direct supervisor is.
2. The dual authority and communication problems may
cause division among employees and managers.
3. Miscommunication and ineffective managing can result
in employee dissatisfaction and low morale.

11. Line refers to those positions and elements of an organization,
which have the responsibility and authority and are accountable for
accomplishment of primary objectives.
Staff elements are those which have responsibility and authority for
providing advice and service to the line in attainment of objectives.
In this organization structure, the authority flows in a vertical line
and get the help of staff specialist who are in advisory.
When the line executives need advice or information about any
specific area these specialists are consulted.

12. 1. Relief to line of executives;
2. Expert advice;
3. Benefit of Specialization;
4. Better co-ordination;
5. Unity of action .
1. Lack of understanding;
2. Line and staff conflicts;
3. Costly.