Compare and Contrast the following:

1) Functional Structure

2) Divisional structure

3) Team structure

4) Matrix structure

5) Network structure

*#INTRODUCTION*

*What Is an Organizational Structure?*

An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization. These activities can include rules, roles, and responsibilities.

The organizational structure also determines how information flows between levels within the company.

Structures help a person understand how a business is designed and how it operates.

The organizational structures within a business can be a functional structure, divisional structure, team
structure, matrix structure and Network structure.

The structure of the organization has an impact on how information, resources and operations are
conducted. Knowing the differences between these structures helps a person understand how
employee efforts are managed within an organization.The structure used is also dependent on the size
of the organization. Companies that are spread across the globe likely have local control, which lends
itself to a divisional approach. A company that's located in a single area can work under a matrix
structure. The further the lines of communication and locus of control, the less likely the matrix
structure is to be used.

*Comparing and contrasting the various Types of Organizational Structures*

*#1* Functional Structure

The first and most common is a functional structure. This is also referred to as a bureaucratic
organizational structure and breaks up a company based on the specialization of its workforce.
Most small-to-medium-sized businesses (SMEs) implement a functional structure. Dividing the firm into
departments consisting of marketing, sales, and operations is the act of using a bureaucratic
organizational structure.

A functional structure allows for a higher degree of specialization and deeper domain expertise than a
simple structure. Higher specialization also allows for a greater division of labor, which is linked to
higher productivity.[1] Although work in a functional structure tends to be specialized, it is centrally
coordinated by the CEO, as in the earlier graphic. A functional structure allows for an efficient top-down
and bottom-up communication chain between the CEO and the functional departments, and thus relies
on a relatively tall structure. The disadvantage inherent to a functional structure is that the emphasis on
specialization can cause high levels of job dissatisfaction and fewer process improvements for the
business.

*2* Divisional or Multi-divisional Structure

The second type is common among large companies with many business units. Called the divisional or
multidivisional (M-Form) structure, a company that uses this method structures its leadership team
based on the products, projects, or subsidiaries they operate.

The divisional structure is separated by nearly independent departments along the lines of product,
market or geographic locations. The larger the organization, the more likely it has a divisional structure,
which is simpler to manage and gives clearer lines of control. A company might have separate divisions
for each product, each market area the company sells in or each geographic location where operations
reside.

The divisional structure allows for more control, as each employee reports only to the structure in which
he's located. An example might be a human resources department that works in and reports to the
China office. In a matrix structure, the employee may report to two different authorities, which allows
for more utilization but a more complex operation — for example, a sales employee may report to the
manager of Product A, as well as the sales manager.

*#3* Team- based structure

In general, a team is made up of people with complementary skills who are working toward a common
purpose. Organizations create teams by grouping employees in a way that generates a variety of
expertise and addresses a specific operational component of the organization. Teams that include
members from different functions are known as cross-functional teams. It is important to remember,
however, that every team is a group but not every group is a team. A team structure must be less
hierarchical, share the leadership, and be more fluid than traditional structures (such as functional or
divisional). True teams do not disband after a project. Rather, they continue to change and adapt to
fulfill group and organizational objectives over several years.
This makes Team-Based structure to be

Similar to divisional or functional structures, team-based organizations segregate into close-knit teams
of employees that serve particular goals and functions, but where each team is a unit that contains both
leaders and workers.

*4* Matrix structure

The matrix structure groups employees in the fields of function and product. It is also the most
confusing and the least used. This structure matrixes employees across different superiors, divisions, or
departments. An employee working for a matrixed company, for example, may have duties in both sales
and customer service.

Typically the matrix structure is focused around individual products, product lines or functions. For
example, Product C and Product D separate structures with different chains of command: Each might
include sales support, IT support, customer service support and operations support. The matrix structure
is complex but allows for a focused approach to both products and functions.

*#5* Network structure

The newest, and most divergent, team structure is commonly known as a network structure. A network
structure has little bureaucracy and features decentralized decision making. Managers coordinate and
control relations both internal and external to the firm. A social structure of interactions is fostered to
build and manage formal and informal relationships. The goal of this structure is to achieve rapid
organizational evolution and adaptation to constantly changing external and internal environments.

The network structure organizes contractors and third-party vendors to carry out certain key functions.
It features a relatively small headquarters with geographically-dispersed satellite offices, along with key
functions outsourced to other firms and consultants.

network structure is meant to promote communication and the free flow of information between
different parts of the organization as needed.

*#CONCLUSION:*

An organizational structure outlines how certain activities are directed to achieve the goals of an
organization.

Successful organizational structures define each employee's job and how it fits within the overall
system.

A centralized structure has a defined chain of command, while decentralized structures give almost
every employee receiving a high level of personal agency.

Types of organizational structures include functional, divisional, flatarchy, and matrix structures.
Senior leaders should consider a variety of factors before deciding which type of organization is best for
their business, including the business goals, industry, and culture of the company.

A matrix structure is organized around product and function, while a divisional structure focuses on
product, market and geographic location.