Elaborate and explain the organizational structure

As the name alludes, it flattens the hierarchy and chain of command and gives its employees a lot of autonomy.

Organizational structure and design

Flat Organizational Chart Functional Top-Down Hierarchy A functional, top-down organizational chart reflects a traditional business structure. The divisions may also have their own departments such as marketing, sales, and engineering. Starbucks is one of the numerous large organizations that successfully developed the matrix structure supporting their focused strategy. Mintzberg's Adhocracy, on the other hand, represents a more networked and less centralized approach to C2, with more individual initiative and self-synchronization. The Weberian characteristics of bureaucracy are: Clear defined roles and responsibilities A hierarchical structure Respect for merit Bureaucratic structures have many levels of management ranging from senior executives to regional managers, all the way to department store managers. A special form of boundaryless organization is virtual. Each product group falls within the reporting structure of an executive and that person oversees everything related to that particular product line. Because functions are decentralized, divisional structures are somewhat more flexible and adaptable to change. Often, growth would result in bureaucracy , the most prevalent structure in the past. Salary Structure in an Organization Organizational structure is also a fundamental core to create salary structures for an organization. Management Structure The org chart shows the individual roles and chain of command within the business structure. As a whole, a functional organization is best suited as a producer of standardized goods and services at large volume and low cost.

None of these however has left behind the core tenets of Bureaucracy. The divisions may also have their own departments such as marketing, sales, and engineering.

Organizational structure in management

This is done to better support logistical demands and differences in geographic customer needs. Teams are formed according to the functions of each member plus the product he or she is involved in. In essence, managers in network structures spend most of their time coordinating and controlling external relations, usually by electronic means. Organizational structure was considered a matter of choice When using divisional structures that are organized by either markets or geographic areas they generally have similar function and are located in different regions or markets. This allows an organization to meet its financial goals and ensures salaries are distributed fairly within financial budgets. Functional structures rely on a central command or management group for communication between the functional departments. The business uses teams to complete tasks. Common departments such as human resources , accounting and purchasing are organized by separating each of these areas and managing them independently of the others.

All this made Shell apprehensive to market changes, [15] leading to its incapacity to grow and develop further. The term organizational structure refers to how the people in an organization are grouped and to whom they report.

The structure is illustrated using an organizational chart. A company will use a divisional set up like this when one division is sufficiently independent from another, however this kind of structure can also add some accounting and other overhead.

types of organizational structure pdf

Departments As a company grows, organizers naturally begin grouping jobs into departments. Below are the four most common: Functional: also known as a bureaucratic organizational structure. The disadvantages of the divisional structure is that it can support unhealthy rivalries among divisions.

This structure is developed to establish how an organization operates and assists an organization in obtaining its goals to allow for future growth. Each division than has it own functional structure like IT and marketing.

Elaborate and explain the organizational structure
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Organizational structure