Types of Organizational Structures Flashcards
Two different dimensions in an organization
Horizontal and Vertical
Horizontal Dimension
- Division of labour/jobs
- Known as Departmentalization
Vertical Dimension
Authority relationships are established to
Make sure everyone is working together and towards a common goal.
Functional organizational structure
People with similar skills and performing similar tasks are formally grouped together into work units.
Advantages of Functional
organizational structure.
- Economics of Scale: efficient uses of resources
- Assignments are consistent with expertise and training
Disadvantages of Functional
organizational structure.
- Difficult to pinpoint responsibilities specific things
- Lack of communication, coordination and problem solving across functions (slows decision making process down)
Divisional Organizational structure
Groups together people who work on the same product or process, serve similar customers and/or are located in the same area or geographical region.
Types of divisional structures
product, geographic, customer, process
Product organizational structure
- Group together jobs and activities working on a single product or service.
Geographic organizational structure
Group together jobs and activities being performed in the same location or geographical region.
differentiate products or services in various locations
Customer organizational structure
Group together jobs and activities that are serving the same customers or clients.
Process organizational structure
Groups together jobs and activities that are part of the same processes
