types of organisational structure

This is also known as the multi-divisional structure. Types of Organisation Structure – With Merits and Demerits . Some large organizations have adopted this type of structure. An organizational structure defines how activities such as task allocation, coordination, ... Mintzberg's other organization types (for example, the Professional Bureaucracy and the Simple Structure) fall in between these two. In functional organisation, the organisation is divided into a number of functional areas. Thus for an organisation to function smoothly and face environmental changes, it becomes necessary to pay attention to its structure. There are three types of bureaucratic structures: 1 - Pre-bureaucratic structures This type of organizations lacks the standards. In a functional structure, the organization is broken into different sections based upon specialty. To put it simply, an organizational structure is the plan of the hierarchy and arrangement of work. Importance 4 Types of Organizational Culture Robert E. Quinn and Kim S. Cameron of the University of Michigan at Ann Arbor (Go Blue) investigated the qualities that make businesses effective. Each functional group is managed individually. It helps an organization decide how the authority passes on, how message communication happens. This type of organizational structure works best for companies in specialist fields. There are different types of organizations that a company can adopt, such as functional, flat, matrix, and divisional organizations. That is, the organization is comprised of many independent decentralized business units, each with its own products, clients, competitors, and profit goals. Understanding what type of organizational structure is used by your company will help you determine how you should manage your project. Organizational Structures Functional Structure Functional structure is set up so that each portion of the organization is grouped according to its purpose. Fundamentally though, there are only three basic types of organization structure. In Functional Organization, people are grouped by areas of specialization. Four types of common organizational structures are implemented in the real world. Functional Organisation: Meaning: The ‘Functional Organisations’ are based on the concept of ‘Functional Foremanship’ suggested by F. W. Taylor, a pioneer in Scientific Management. Bureaucratic Structures Bureaucratic structures maintain strict hierarchies when it comes to people management. Under this structure, employees are grouped into the same departments based on similarity in their skill sets, tasks, and accountabilities. The structure follows a hierarchical model that includes clearly identified roles, authority and promotional pathways. It’s therefore crucial that business owners pick the right organizational type to help operations run more smoothly. From a list of 39 attributes, the researchers identified two key polarities: (1) internal focus and integration vs. external focus and differentiation, and (2) flexibility and discretion vs. stability and control. It works best in small organizations in which the different sections are geographically close together and which provide only a small number of goods and/or services. There is no centralized control or resource allocation. Under a functional structure, an organization is divided into defined activities, such as production, marketing or sales. There are different types of organizational structures that companies follow, depending on a variety of factors like leadership style, type of organization, geographical regions, work flow and hierarchy. Types of Organizational Structure. Organizational Structure Type #1: Functional Organization. Strong Matrix Structure. 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