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ORGANISATION STRUCTURES

ORG STRUCTURE
• The structure of organisation varied from one
another according to the nature of business.
– Entrepreneurial structure
– Functional structure
– Divisional structure
– SBU structure
– Matrix structure
– Network structure
Cont’d
• Other types(based)
– Product
– Customer
– Geographic
Entrepreneurial structure

Owner

Manager

employees
Merits & Demerits
• Merits
– Decision making
– Timely response
– Easy and simple method
• Demerits:
– Autocratic management
– Inadequate knowledege
Functional structure

CHAIRMAN

PUBLIC
RELATIONS

MARKETIN PRODUCTIO
FINANCE HRM
G N
MERITS & DEMERITS
• MERITS
– Specialization of work
– Timely response
– Expertise
• Demerits
– Co ordination
– Conflicts
Divisional structure
• Division of work
• Quick response
• Focus on strategic decisions
SBU structure
Cont’d
• Difficulties in maintaince
• Problems in assigning responsbilty
Matrix structure
Product based structure
Customer based structure
Geographic based structure

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