ORGANIZATIONAL

STRUCTURES

An organizational structure defines how activities such as

coordination, and supervision are directed toward the a
organizational aims. It determines which individuals get t
which decision-making processes, and thus to what exte
shape the organization's actions.

TYPES OF ORGANIZATIONAL STRUCTUR

FUNCTIONAL ORGANIZATIONAL PRODUCT-BASED MARKET-BASED DIVISIONAL

STRUCTURE DIVISIONAL STRUCTURE STRUCTURE

A divisional organizational structure is Another variety of the divisional

One of the most common types of comprised of multiple, smaller functional organizational structure, wherein the
organizational structures, the functional structures. In this case, each division within divisions of an organization are based
structure departmentalizes an the organization is dedicated to a particular around markets, industries, or customer
organization based on common job product line. types.
functions.

ADVANTAGES DISADVANTAGES ADVANTAGES DISADVANTAGES

ADVANTAGES DISADVANTAGES

Has the potential to

Allows for a high degree of
specialization for employees
and is easily scalable should
the organization grow. this
structure is mechanistic in
nature -- which has the
potential to inhibit an
employee's growth
create barriers between This type of structure is
ideal for organizations This
different functions -- and
it can be inefficient if the with multiple products the organization could organizationalstructur Divisions might also
and can help shorten end up with duplicate e keeps the business
organization has a variety end up inadvertently
product development resources as different constantly aware of
of different products or duplicating activities
cycles. This allows small divisions strive to demand changes
target markets. They can that other divisions are
businesses to go to develop new offerings. among its different
also limit peoples' already handling.
market with new audience segments.
knowledge of and
communication with offerings fast.