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Organizations Structure

Culture and structure are often intertwined. The company had a top-down, military-style
hierarchy and culture that seemed to encourage teamwork and communication.
We may categorize the arrangements of organizations into seven types of structures: (1) simple,
(2) functional, (3) divisional, (4) matrix, (5) team-based, (6) product and (7) geographic
1: Team structure:
A team structure refers to an organization of the roles and responsibilities of members of a
project team or people involved in a certain task. This helps in assigning roles to specific
individuals within the team. The structure is also vital in eliminating conflicts within the team.
1- At ABC company e-learning division, managers realized that their functional structure was
slowing their delivery time to customers. As a result, they restructured the division into teams
representing specific market segments, such as corporate, higher education, high-tech and so on
depending on special learning needs of each segment. In doing so, ABC witnessed significant
reduction in content development as well as delivery time, in addition to an increase in customer
2-The Morning Star Company, a privately held food processing and agribusiness company, is a
fully self-managed company, having no formal hierarchy, and allowing colleagues within the
company to commit to their own activities, organize their own work, and coordinate their own
working relationships with other colleagues.
2: Divisional structure:
A divisional structure is s manner of designing and organization so that it is split up into semi
autofocus units called Divisions. A divisional organizational structure usually consists of several
parallel teams focusing on a single products and services. A divisional organization structure is a
decentralized kind of structure where each division has an authority of making decisions
regarding their own division. Each division has all kinds of functions and employees that have to
run a particular division according to situation, demand, customers, market condition and other
A company has different products. For product A, that division consists of different departments
like manufacturing department, research and development department, marketing and finance
departments. Similarly product B that has different division consists of manufacturing
department, research and development department, marketing and finance department. Every
product of the company has their own divisions under the supervision of higher authority.
3: Simple structure
The first organizational form is the simple structure. This is the form often found in a firms very
early, entrepreneurial stages, when the organization is apt to reflect the desires and personality of
the owner or founder. An organization with a simple structure has authority centralized in a
single person, a flat hierarchy, few rules, and low work specialization.
Hundreds of thousands of organizations are arranged according to a simple structure for instance,
small mom-and-pop firms running landscaping, construction, insurance sales, and similar
Both Hewlett-Packard and Apple Computer began as two-man garage start-ups that later became
4: Functional structure
The second organizational form is the functional structure. In a functional structure, people with
similar occupational specialties are put together in formal groups. This is a quite commonplace
structure, seen in all kinds of organizations, for-profit and nonprofit.
A manufacturing firm will often group people with similar work skills in a Marketing
Department, others in a Production Department, others in Finance, and so on. A nonprofit
educational institution might group employees according to work specialty under Faculty,
Admissions, Maintenance, and so forth.
5: Product divisions:
Product divisions group activities around similar products or services.
The media giant Time Warner has different divisions for magazines, movies, recordings, cable
television, and so on. The Warner Bros. part of the empire alone has divisions spanning movies
and television, a broadcast network, retail stores, theaters, amusement parks, and music.
6: Customer Divisions
Customer divisions tend to group activities around common customers or clients. Examples:
Ford Motor Co. has separate divisions for passenger-car dealers, for large trucking customers,
and for farm products customers. A savings and loan might be structured with divisions for
making consumer loans, mortgage loans, business loans, and agricultural loans.
7: Geographic Divisions:
Geographic divisions group activities around defined regional locations. Example: This
arrangement is frequently used by government agencies. The Federal Reserve Bank, for instance,
has 12 separate districts around the United States. The Internal Revenue Service also has several
8: Matrix Structure:
The fourth organizational form is the matrix structure. In a matrix structure, an organization
combines functional and divisional chains of command in a grid so that there are two command
structures vertical and horizontal. The functional structure usually doesnt change it is the
organizations normal departments or divisions, such as Finance, Marketing, Production, and
Research & Development. The divisional structure may vary as by product, brand, customer, or
geographic region.
A hypothetical example, using Ford Motor Co.: The functional structure might be the
departments of Engineering, Finance, Production, and Marketing, each headed by a vice
president. Thus, the reporting arrangement is vertical. The divisional structure might be by
product (the new models of Taurus, Mustang, Explorer, and Expedition, for example), each
headed by a project manager. This reporting arrangement is horizontal. Thus, a marketing
person, say, would report to both the Vice President of Marketing and to the Project Manager for
the Ford Mustang. Indeed, Ford Motor Co. used the matrix approach to create the Taurus and a
newer version of the Mustang.