Scribd
Upload
88 views10 pages

Organization Structure: Chapter 5: Organizing

This document discusses different types of organizational structures: 1) Functional structure organizes departments by specialized functions and makes efficient use of resources but has narrow supervision. 2) Geographical/regional structure divides sales or operations into different geographic areas to better serve scattered customers. 3) Product structure groups all functions related to a product together in divisions, allowing each to operate like a separate business while reporting to headquarters. 4) Matrix structure combines functional and divisional structures with employees reporting to both functional and project managers. 5) Mixed structures use cross-functional teams bringing diverse experts together for projects rather than traditional departments.

Uploaded by

rockyj47
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
88 views10 pages

Organization Structure: Chapter 5: Organizing

This document discusses different types of organizational structures: 1) Functional structure organizes departments by specialized functions and makes efficient use of resources but has narrow supervision. 2) Geographical/regional structure divides sales or operations into different geographic areas to better serve scattered customers. 3) Product structure groups all functions related to a product together in divisions, allowing each to operate like a separate business while reporting to headquarters. 4) Matrix structure combines functional and divisional structures with employees reporting to both functional and project managers. 5) Mixed structures use cross-functional teams bringing diverse experts together for projects rather than traditional departments.

Uploaded by

rockyj47
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 10

ORGANIZATION STRUCTURE

CHAPTER 5: ORGANIZING
Functional Structure
Functional Structure
• The logical and basic form of
departmentalization.
• It is used mainly by smaller firm that offers a
limited line of products because it makes efficient
use of specialized resources.
• Another major advantage of a functional
structure is that it makes supervision easier, since
each manager must be expert in only a narrow
range of skills.
• In addition, a functional structure make it easier
to mobilize specialized skills and bring them to
bear where they are most needed. (Refer slide 1)
Geographical/Regional Structure
Geographical/Regional Structure
• An organization sales function might have
western, southern, mid western and eastern
regions.
• If an organization customers are scattered
over a large geographic area, this form of
departmentalization can be valuable.
• Geographic departmentalization is logical
when a plant must be located as close as
possible to source of raw materials , to major
markets or to specialized personnel.
Product Structure
Product Structure
• Often referred to as organization by division, brings
together in one work unit all those involved in the
production and marketing of a products or a related
group of products in a certain geographic area. 
• Unlike functional department, a division resembles a
separate business.
• The division head focuses primarily on the operations
of his or her division, is accountable for profit or loss,
and may even compete with other units of the same
firm.
• But a division is unlike a separate business in one
crucial aspect: the division manager must still report to
central headquarters.
Matrix Structure
Matrix Structure
• During the 1960s, an unusual organization arrangement
known as the matrix organization was developed by
companies in the U.S aerospace industry.
• This matrix structure sometimes referred to as a "multiple
command" system, is a hybrid that attempts to combine
the benefits of both types of designs while avoiding the
drawbacks.
• An organization with matrix structure has two types of
structure existing simultaneously.
• Employees have in effect two bosses-that is they work in
two chains of command.
• One chain is a functional or division.
• The second is a horizontal overlay that combines people
from various divisions or functional departments into a
projects led by a project or group manager who is an
expert.
Mixed Organization Structure
• In many organization, rigid departmental division
are being replaced by a hybrid grouping of
individuals who are experts in various specialties
and who work together in an organizational
arrangement known as cross-functional team.
• What’s unique about mixed organization structure
is that they bring together a diversity of experts
who might never cross path in a traditional
organization although their work might be highly
interdependent.
• The mixed organization structure are doing
everything from designing a new products and
seeing that it makes it to the marketplace, to
preparing a long term corporate strategy.

You might also like