Organization Structure & Its advantages and disadvantages

By HitendraSinh jhala Ketan Changani Neha Fatehchandani Sujay Bhonsle

What is Organizational Structure
• An organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim.


• An organization can be structured in many different ways and styles, depending on their objectives and ambiance.


• Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual.

Hewlett Packard
Hewlett Packard Chief Executive

Board of Directors

Americas Houston, Texas

Europe, Middle East, Africa Geneva, Switzerland

Asia Pacific Hong Kong

Production

Marketing

Accounts

Personnel

IT

Imaging and Printing Group

Personal Systems Group

Enterprise Systems Group

HP Services

HP Financial Services

Functional Structure
Advantages • Specialisation – each department focuses on its own work.

• • • •


• Accountability – someone is responsible for the section.


• Clarity – know your and others’ roles.

Disadvantages Closed communication could lead to lack of focus Departments can become resistant to change Coordination may take too long Gap between top and bottom

Organisation by Geography

Advantages • Serve local needs better


• Positive competition

Disadvantages • Conflict between local and central management


• More effective communication between firm and local customers

• •
• Duplication of resources and functions


• Communication

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