SHRI RAMSWAROOP MEMORIAL

UNIVERSITY

ORGANIZATIONAL BEHAVIOUR
TA-3

SESSON: 2023-24

TOPIC
“ORGANIZATION STRUCTURE AND THEIR NETURE”

Submitted To:- Submitted By:-

ADITI MISHRA Nirbhay Singh
202310101150703
B.Tech CSE(DS+AI)
Introduction:
Organizational structure refers to the framework that outlines how activities are directed, controlled,
and coordinated within an organization. It defines the hierarchy, roles, responsibilities, and
communication channels within an organization. The choice of organizational structure significantly
influences the culture, efficiency, and adaptability of the organization. This report aims to provide an
overview of various types of organizational structures and their nature.
1. Functional Structure:
Description: In a functional structure, employees are grouped based on their common skills,
expertise, or functions they perform.
Nature: This structure fosters specialization and efficiency as employees work with others who
share similar skills and knowledge. However, it can lead to silos and slow decision-making due to
hierarchical layers.
2. Divisional Structure:
Description: Divisional structure organizes employees into separate divisions based on products,
services, geographic regions, or customer groups.
Nature: It enhances focus and accountability within each division, allowing for better adaptation
to diverse market conditions. However, it may result in duplication of resources and lack of
coordination between divisions.
3. Matrix Structure:
Description: Matrix structure combines functional and divisional structures, where employees
report to both functional managers and project managers simultaneously.
Nature: It promotes flexibility and resource optimization by leveraging specialized skills for
specific projects. However, it can lead to power struggles, role confusion, and increased
complexity in decision-making.
4. Network Structure:
Description: Network structure relies on strategic alliances, partnerships, and outsourcing to
perform various functions rather than internal departments.
 Nature: It offers agility and cost-effectiveness by tapping into external expertise and resources.
However, it requires strong coordination and trust among network partners to ensure alignment of
goals and values.
5. Flat Structure:
Description: Flat structure minimizes hierarchical levels, with few or no middle managers
between staff and executives.
Nature: It encourages autonomy, creativity, and faster communication flow within the
organization. However, it may lead to ambiguity in roles and responsibilities and challenges in
managing larger teams

Conclusion: Organizational structure plays a crucial role in shaping the culture, efficiency, and
adaptability of an organization. Each type of structure has its advantages and limitations, and the
choice depends on various factors such as size, industry, goals, and culture. Organizations must
continuously evaluate and adapt their structures to remain competitive and responsive to changing
market dynamics.