An organizational structure is a framework within which an organization carries out its managerial and operating tasks and defines relationships between people, work, and resources. An efficient structure should result in an organization's growth, create room for better communication, transparent r...
An organizational structure is a framework within which an organization carries out its
managerial and operating tasks and defines relationships between people, work, and resources.
An efficient structure should result in an organization's growth, create room for better
communication, transparent reporting relationships, and efficient completion of tasks. In a formal
or traditional organizational structure, decisions take longer to move down the management
levels. There is a considerable gap between the top management and the employees because they
don't engage often. The success of a company depends on the organizational structure it adapts.
Poor corporate structure results in a mix-up within roles, slow decision-making processes, hinder
sharing of ideas across functions, and a lack of collaboration between departments in an
organization.
There are different types of organizational structures an organization can adopt based on
its size and needs. They include the divisional, functional, and matrix structures. The functional
system is where employees are grouped according to their skill sets to perform specific tasks. For
instance, an organization could have a group of employees in marketing, another in finance, and
another in information technology. It allows the employees to make collective efforts to perform
their roles as a department. Divisional structure creates space for independence within teams in
the organization. Each division basically functions as its own business, managing its own
resources and determining its use on certain tasks or aspects of the division.
The matrix structure blends the functional management and project management structure
to increase productivity, adjust to shifting markets, and respond more quickly to market demand.
One advantage of the matrix organizational structure is that it creates a space where teams can
share information and data across the different functional departments or divisions, hence forge
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