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ORGANIZATIONAL SYSTEMS

Organizational structure is essential for groups to achieve their goals and is influenced by various internal and external factors. Different types of structures include functional, territorial, product-based, market-centered, SBU, and matrix, each serving specific organizational needs. The choice of structure depends on factors such as company philosophy, size, products, market, competition, and the need for flexibility and control.

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Sheila Malaluan
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9 views

ORGANIZATIONAL SYSTEMS

Organizational structure is essential for groups to achieve their goals and is influenced by various internal and external factors. Different types of structures include functional, territorial, product-based, market-centered, SBU, and matrix, each serving specific organizational needs. The choice of structure depends on factors such as company philosophy, size, products, market, competition, and the need for flexibility and control.

Uploaded by

Sheila Malaluan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as ODT, PDF, TXT or read online on Scribd
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ORGANIZATIONAL

SYSTEMS
ORGANIZATIONAL STRUCTURE
Organizational structure refers to the system or mode by which a group of
individuals is able to achieve its desired goals. The organizational
structure of an organization/company is subject to many factors like
technological breakthroughs by competitors, changes in customer
lifestyles and those that are environmental in nature. Management,
employees, suppliers, customers government, and society are examples
of internal factors that significantly affect organizations one way or
another. Suffice it to say, servicing and product companies need to be
dynamic to stay in the business mainstream. They need to possess a built
in flexibility that will enable them to adapt readily to unstable conditions
FUNCTIONAL ORGANIZATIONAL
STRUCTURE

A functional organizational structure is a team


structure that groups employees into different
departments based on areas of expertise. This
type of structure is one of the most common
types in business, especially in larger
companies, where groups of employees are
organized according to the function they
perform
TERRITORIAL ORGANIZATIONAL
STRUCTURE

As an organization begins to serve its


customers who are spread over a growing
geographical area, a territorial structure
becomes a viable design. In this system, the
target market is divided into geographical units
according to certain criteria.
PRODUCT ORGANIZATIONAL
STRUCTURE

It is a framework in which a business is


organised in separate divisions, each focusing
on a different product or service and
functioning as an individual unit within the
company.
MARKET CENTERED
ORGANIZATIONAL STRUCTURE
A market centered organizational structure
group company activities around important and
relevant criteria and forms SBUs that will
formulate marketing strategies , among others.
Each unit is responsible for profits. In many
cases ,large division have their own marketing
departments
SBU ORGANIZATIONAL
STRUCTURE

Strategic business units (SBUs) are small


independent divisions of a main business
dealing in a particular product with its
independent objectives, profit, and customer
base. These are often observed among global
conglomerates with multiple layered business
models and various product lines and services
worldwide.
MATRIX ORGANIZATIONAL
STRUCTURE

A matrix organization is a company structure


where teams report to multiple leaders. The
matrix design keeps open communication
between teams and can help companies
create more innovative products and services.
Using this structure prevents teams from
needing to realign every time a new project
begins.
CHOICE OF AN •PHILOSOPHY OF
ORGANIZATIONAL STRUCTURE MANAGEMENT
EVALUATION OF AN
• SIZE OF THE FIRM • THE ORGANIZATIONAL
STRUCTURE
PRODUCTS • THE MARKET
•COMPETITION
• FACILITATING CONTROL • •COST OF THE SYSTEM
COORDINATION •FLEXIBILITY
•PROVIDING INFORMATION
ORGANIZATIONAL
COMPONENTS

An organization is an entity composed of people that is


structured and managed in such a way that it is able to achieve
its set goals and objectives. •MANAGEMENT

•EMPLOYEES
•FACILITIES AND EQUIPMENT
•FINANCIAL RESOURCES
•ORGANIZATIONAL POLICIES

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