Saturday 29 December 2018

Forms of organizational structure

Forms of organizational structure

Organizing is one of the basic functions in management to achieve the targets set by the organization. Organizing this relates to the classification of activities, settings or other resources and delegate. It to the individual or specific units to run it so that require. The preparation of organizational structures clarify the functions of each part. The nature of the relationship between these parts.

Thus, it is clear that the preparation of organizational structures is very important in an organization or company. Whether such organizations small and large-scale still requires a clear organizational structure. To achieve goals the specify organization. By definition, the definition of the organizational structure is a System task, workflow, reporting relationships and channels of communication. That are associate together in individual and group work.

Organizational structure in an organization is usually depict in the form of a chart organization chart (Organization Chart). It is a diagram that describes the settings of the positions in the organization. That also includes the line communication and authority.

Forms of organizational structure

Organization chart shapes are often use in the organization generally consists of three forms, namely. The functional organizational structure, Divisional organizational structure. (base on product/market). The organizational structure of the matrix.

The Functional Organizational Structure

The functional Organization structure (Functional Structure Organization) is the most common organizational structure use by an organization. The Division of labor in the form of a functional organizational structure is complete base on management functions. Such as finance, production, marketing and human resources.

Employees who have the skills (skill) and the same task will be group together into a single unit of work. The structure of this organization right to apply to the organization or company that only produces several types of products and services.

This form of organization structure can squeeze operating costs but have difficulty in communicating between different work units.

An Example of A Functional Organizational Structure

Functional Organizational Structure

Divisional Organization Structure

Divisional organizational structure (Divisional Structure Organization) is an organizational structure. That group by similarity of products, services, markets and geographical location. This form of Divisional organization usually apply in companies that are medium-and above. This is because operational costs will be higher if compare to form Functional Organization.

Divisional Organization Structure Example

Matrix Organizational Structure

The organizational structure of the matrix (the Matrix Structure Organization) is a combination of Functional. It organizational structure of Divisional organizational structure with the purpose. To cover the deficiencies that are present in both forms of the structure Organization. Such matrix organizational structure is often also call the organizational structure of the project. Due to employees who are in some functional work units should also be working on activities or projects task organization that was assign to him.

The matrix organizational structure result in the occurrence of multi command. Where an employee is require to report to the leadership of two i.e. The leadership in Functional work units and the leadership of the project. This organizational structure is usually use by a company or large-scale multinational companies.

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