What is your Organizational Structure?
We all know that there are 5 known approaches to organizational structures:
- Functional
- Divisional
- Matrix
- Team
- Networking
All five approaches comprise of varying fundamentals of systematic
and organic structures.
Functional structure:
The functional structure has units based on similar activities,
skills, expertise, and resources. Production, marketing, finance, and human
resources are common groupings within a functional structure.
A functional structure features well-defined channels of
communication, authority and responsibility relationships.
Divisional structure:
In large organizations it is imperative to keep track of all
their company's products and activities which lead to a development of
specialized departments. Such departments are then divided according to their
organizational productivity. This confederacy of departments is called
divisional structure, thus allowing managers to focus on the results and
resources.
Matrix structure:
In the Matrix structure personnel of similar skills are combined
for the functional assignments, this structure uses permanent cross-functional
teams to assimilate functional proficiencies. This structure increases employee
motivation and cross training.
Team structure:
Team structure is composed of personnel from different
departments who work together as needed to solve problems and explore
opportunities. The focus is to break down the functional barriers among the
various division or departments and generate a more effective relationship;
however, managers must be aware that how well team members work together often
depends on the quality of interpersonal relations, group dynamics, and their
team management abilities.
Network structure:
The network structure relies on other organizations to
perform critical functions on a contractual basis or more commonly known as
outsourcing. Organizations outsource specific work to specialists. This
approach provides flexibility and reduces overhead.
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