Four Types of Organizational Structures in Business

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Table of Contents

Types of Organizational Structures
Pre-Bureaucratic Organizational Structure
Functional Organizational Structure
Divisional Organizational Structure
Matrix Organizational Structure
Organizational activities
Works Cited

An organizational structure is a concept which shows how integrated entities in an organization interact to achieve an organization’s goals and objectives. These can be departments and relates with the way different positions in an organization are identified or levels of management and the reporting relationships between these positions or hierarchies commonly referred to as the line of command (Organizational Structure 1).

Communication or the flow of information is usually upward, downward, and horizontal. An organization’s structure determines the responsibilities and roles of organizational employees. An organizational structure also consists of organizational culture and organizational behavior as in the case study.

Types of Organizational Structures

According to the article Organizational Structure (1) these structures depend on what the organization wants to achieve and their core functions.

Pre-Bureaucratic Organizational Structure

These structures are those without specific benchmarks or standardized activity definitions. (Organizational Structure 1). These do not have formal structures in place and standardized task and sub-task allocations and responsibilities.

Functional Organizational Structure

A functional structure is specifically meant for large organizations. Such a structure has the advantages of better allocations of tasks and responsibilities. In addition, it is a cost effective manner of carrying out tasks and sub-tasks for efficient use of an organization’s resources.

Within each entity employees find it easy to work together since communication between them is efficient. However communication from the outside of a specific department may be slow. This structure has the advantage of efficient employee and resource utilizations but slow interdepartmental coordination.

Divisional Organizational Structure

Different regions have different market needs. In order to meet the needs of a market, an organization can be structured after the needs identified with different geographical divisions or marketing needs. The functional requirements for each division are integrated into organizations such that they are met (Organizational Structure 1).

Matrix Organizational Structure

Sometimes organizations are structures such that different organizational structures are amalgamated to form a single structure. This kind of structure may be an integration of functional structures, divisional structures, pre-bureaucratic organizations, and bureaucratic organizations.

Each organizational entity is grouped according to the product it produces, the functions it performs and standards established. A matrix structure’s strength is teamwork. Here, each team is required to exploit and capitalize on its key strengths to best achieve an organization’s goals.

In addition to these, a matrix organization is characterized by decentralized management. This reduces the effect of tall and short organizational structures.

Organizational activities

For an organization to efficiently perform and put to efficient use the human resources and other organizational resources, tasks and sub tasks have to be identified and differentiated. In addition to that, the tasks have to be standardized in line with an organization’s goals and objectives aligned in its vision.

Then a strategy must be laid to achieve that vision. Therefore an organization must be designed according to its strategy, the level of available technology (Organizational Structure 1). Environmental issues which touch on corporate social responsibilities for the organization are vital.

An organization’s structure is usually shown on an organization’s chart. Organizational activities include coordination, communication, task assignments, departmentalization, and employee motivation among many others. Each organizational activity must be communicated well to elicit understanding. Good communication within the organization in the case study leads to employee motivation and performance improvement.

Works Cited

Organizational Structure. 15 March, 2010. Web.

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