The Concept of Functional and Divisional Organizational Structure

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Table of Contents

Introduction
Main body
Conclusion
References

Introduction

Organizational structures establish the manner in which processes such as role allotment, coordination, and supervision are geared toward the realization of a company’s objectives. Organizations ought to be flexible, effective, inventive, and caring to reach a sustainable competitive benefit (Van der Voet, 2014). An organizational structure may be deemed to be the viewpoint through which people see the business and its environment.

Main body

For instance, in a functional structure, the most common formation, the business seeks to group workers in line with a specialized or comparable set of duties (Fairfield, 2016). Though such a structure operates excellently in stable settings where organizational strategies are less predisposed to changes, the extent of bureaucracy makes it hard for companies to react to variations in the market rapidly.

The divisional structure classifies the operations of an organization along with market, service, product, or geographical lines. In this aspect, a business managed in a divisional method may have operations dealing with farm produce located in the US, for example, and the ones handling green products in Europe where every division holds a different set of tasks. Organizations may be structured differently, reliant on their aims. An organization’s structure assists in the determination of the best mode of action (Lee, Kozlenkova, & Palmatier, 2015). On this note, it is evident that an organization’s structure enables the easy sharing of tasks for diverse functions and practices among different entities, for instance, branch, unit, team, or location to mention a few.

Conclusion

Organizational structures may influence the activities of a company in two ways. They may either present the basis on which standard operating practices and habits lie or choose the people to carry out administrative tasks and how they shape organizational behavior.

References

Fairfield, K. D. (2016). Understanding functional and divisional organizational structure: A classroom exercise. Management Teaching Review, 1(4), 242-251.

Lee, J. Y., Kozlenkova, I. V., & Palmatier, R. W. (2015). Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), 73-99.

Van der Voet, J. (2014). The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure. European Management Journal, 32(3), 373-382.

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The Concept of Functional and Divisional Organizational Structure

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