Organization Structure

Functional Structure

functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. The organizational structure determines how the organization performs or operates. The term organizational structure refers to how the people in an organization are grouped and to whom they report. One traditional way of organizing people is by function. Some common functions within an organization include production, marketing, human resources, and accounting.

Divisional Structure

The Divisional structure or product structure is a configuration of an organization, which breaks down the company into divisions that are self-contained. A division is self-contained and consists of a collections of functions which work to produce a product. It also utilizes a plan to compete and operate as a separate business or profit center. According to Zainbooks.com, divisional structure in America is seen as the second most common structure for organization today.

Matrix Structure

Matrix structure is only one of three major structures such as Functional and Project structure. Matrix management is more dynamic then functional management in that it is a combination of all the other structures and allows team members to share information more readily across task boundaries. It also allows for specialization that can increase depth of knowledge in a specific sector or segment.


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