Types_of_Organizational_Structure

Organizational Structures Organization Structure is a frame work that managers devise for dividing and coordinating the activities of members of an organization. Because strategies and environmental circumstances differ from one organization to the next, there are a variety of possible organizational structures. There are three major contingencies that determine what kind of structure an organization designs: Organization's environment Technology an organization uses Organization's strategy. Types of Organizational Structures There are many different kinds of structure adopt in organizations. Few of those structures are explained below: Functional (U-Form) Structure Divisional (M-Form) Structure The Matrix Structure Simple Structure Conglomerate (H-Form) Structure Functional (U-Form) Structure The functional structure is an arrangement based on the functional approach to departmentalization. Under this U-form arrangement the members and units in the organization are grouped into functional departments such as marketing and production. For the organization to operate efficiency in this design, there must be considerable coordination across departments. {draw:frame} Advantages & Disadvantages of Functional Structure Divisional (M-Form) Structure In the divisional design which is becoming increasingly popular, a product form of organization is also used. This type structure is based on multiple businesses in related areas operation within a large organizational framework. Some activities are extreme decentralized down to the divisional level; others are centralized at the corporate level. {draw:frame} {draw:frame} Advantages & Disadvantages of Divisional Structure The Matrix Structure The matrix structure is characterized by the simultaneous authority of project and functional managers over line and/or staff. The following figure is shown one type of matrix organizational structure. Advantages & Disadvantages of Matrix Structure Simple Structure {draw:frame} A structure characterized by a low degree of departmentalization, wide spans of management authority centralized in a single person and little formalization. Advantages & Disadvantages of Simple Structure Conglomerate (H-Form) Structure {draw:frame} The conglomerate design is used by an organization made up of a set of unrelated businesses.