Posted by Satyendra on Dec 8, in Management 0 comments Comparison between Hierarchical and Flat Organization Structures Organizations can vary in the way they are organizationally structured. The structure of an organization is very important for achieving maximum productivity, managing individual work needs and reaching of corporate goal and objectives. It determines the extent and nature of how leadership is disseminated within the organization. It is the method to ensure effective channels of communication.
Share on Facebook The organizational structure of your company influences its operations. Depending on how you organize your business, you can have centralized control or delegated authority. Some structures promote team cohesiveness, while others depend on individual initiatives.
You have to make sure your organizational structure suits the type of business you are in and matches the requirements of your market environment.
Simple A simple organizational structure has a hierarchy that consists of a top executive who delegates authority down the organizational ladder. It is appropriate for smaller companies in which a founder directs operations and for regulated businesses in which tight compliance with policies and procedures is essential.
The structure is efficient because all activity is coordinated through the direct lines of authority. Divisional When a company grows, it becomes too large to operate under a simple organizational structure and often splits into divisions.
Each division acts as a smaller company with a simple structure, but the divisions are tied together at the top under a corporate framework. Divisions can be responsible for operations on a geographical base or on the basis of product lines.
The structure is as efficient as a simple company, but coordination can be a problem, because each division acts independently and efforts can be duplicated.
Functional The functional organization structure solves the duplication of effort in divisions by splitting the company into departments based on functionality. For example, one department is responsible for companywide marketing and another one is responsible for all human resources.
The structure is hierarchical, but the chief executive delegates authority to the professionals in each specialized department. While duplication is reduced, coordination suffers as each department focuses on its area of activity.
Matrix In rapidly changing markets, companies must adapt quickly and need a flexible organizational structure, because the hierarchical models are too slow to react to external changes.
The matrix structure combines the hierarchy for organizational matters with a responsiveness gained through placing responsibility for executing work at lower organizational levels.
What are the differences and similarities between organizational structures and culture? Update Cancel. What is the major difference between organizational culture and organizational identity? Are there any cultural similarities or differences between India and its neighbouring countries? What are two similarities and two differences. Business Structures Comparison Chart SOLE PROPRIETORSHIP: GENERAL PARTNERSHIP: Advantages: • Minimum legal restrictions • Ease of formation • Organizational complexity • Expense activities limited by charter • Extensive regulation, record-keeping. Compare between different market structures market structure In economics, market structure is the number of firms producing identical products which are homogeneous.
Teams operating at the working level have responsibility for carrying out work and interacting with the market. The team members report to a team manager for their work and also report to managers in the company hierarchy for disciplinary and job-related matters.
The structure can be inefficient: Work can be duplicated, coordination between teams can be lacking and there might not be a clear path of authority. Its advantage is the ability to quickly respond to customer concerns and market changes.Organizational structure types are the means by which companies group workers, processes and work flows to manage productivity.
The three types of organizational structures are functional. Functional Vs Divisional Structure Can any one please let me know the the similarities between the functional and multi divisional organizational structures.
Reply Quote | 01/15/16 Iwajeth - Thanks. Thank you so much for a great effort! Reply Quote | 06/27/15 Anonymous. Structures help a person understand how a business is designed and how it operates.
The reporting structures within a business are impacted by the differences between a matrix structure and a divisional structure. A matrix structure is organized around product and function, while a divisional structure focuses on.
The main strength of the divisional structure is that it is very adaptable to fast changes and to differences between products, geographic locations or customers. Also, it involves collaboration between various functions, which leads to innovation.
VanNatta, Elina. "Functional vs. Divisional Organizational Structure." Bizfluent. Organization structure consists of vital pillars of an organization which the organization is composed of. Frame of Organizational Structure: Work Specialization: Work specialization is a key factor of organization structure.
In the organization there are several jobs along their workers. This article attempts to clarify the differences between centralization and decentralization in an organisation, in both tabular form and in points. Centralization is the systematic and consistent concentration of authority at central points.
Unlike, decentralization is the systematic delegation of authority in an organisation.