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Organizational_Structure_Project

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22 views

Organizational_Structure_Project

Uploaded by

Ehis Roberts
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Organizational Structure: A Comprehensive Study

Introduction
Organizational structure defines how activities such as task allocation, coordination, and
supervision are directed toward achieving organizational goals. It determines the flow of
information, decision-making authority, and resource allocation within a company.

Types of Organizational Structures

1. Divisional Structure
Definition: This structure groups employees based on products, services, or markets. Each
division operates as a semi-autonomous unit.

**Diagram:**

Company
├── Division A (Product/Service A)
│ ├── HR
│ ├── Marketing
│ ├── Finance
├── Division B (Product/Service B)
│ ├── HR
│ ├── Marketing
│ ├── Finance

Characteristics
- Each division focuses on a specific product/service.
- Has its own functional departments.

Advantages
- Encourages specialization.
- Easier performance tracking.

Disadvantages
- Risk of duplication of resources.
- Limited communication across divisions.

2. Geographic Structure
Definition: Groups employees based on geographic location to better address regional
needs.

**Diagram:**
Company
├── Region 1
│ ├── Sales
│ ├── Operations
├── Region 2
│ ├── Sales
│ ├── Operations

Characteristics
- Each geographic region acts independently.
- Regional autonomy.

Advantages
- Closer to local markets.
- Culturally sensitive.

Disadvantages
- Duplicated efforts across regions.
- Coordination challenges.

3. Matrix Structure
Definition: Employees report to both a functional and a project/product manager.

**Diagram:**

Project A Project B
│ │
Marketing Team ──── Marketing Team
Finance Team ──── Finance Team

Characteristics
- Dual reporting lines.
- Combines functional and project-based structures.

Advantages
- Promotes collaboration.
- Efficient use of resources.

Disadvantages
- Complex reporting relationships.
- Can lead to conflicts between managers.

4. Team-Based Structure
Definition: Groups employees into teams working on specific goals or projects.

**Diagram:**
Team A ── Marketing, Sales, and Operations
Team B ── Marketing, Sales, and Operations

Characteristics
- Cross-functional teams.
- Emphasis on collaboration.

Advantages
- Increases innovation and adaptability.
- Reduces hierarchy.

Disadvantages
- Risk of role ambiguity.
- Requires strong communication skills.

Formal Organizational Structure


A formal structure is explicitly defined and involves clear roles, responsibilities, and
relationships.

Characteristics
- Hierarchical and centralized.
- Clearly defined authority.
- Focus on rules and procedures.

Advantages
- Stability and consistency.
- Clear accountability.

Disadvantages
- Can be rigid and slow to adapt.
- May stifle creativity.

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