Five Types of Organization Structures

Topics: Organizational structure, Organization, Structure Pages: 2 (659 words) Published: July 21, 2013
Five Organizational Structures
Assignment 5
July 13 2013

Every organization, to be effective, must have a structure. An organization structure is the setup that determines the hierarchy and reporting structure in an organization. It is often represented by a drawing known as an organizational chart. There are different types of organizational structures that companies follow, depending on a variety of factors like leadership style, type of organization, geographical regions, work flow and hierarchy. Organizations may choose from a number of common operating structures. One popular structure is the functional organization, where the company is divided into separate units based on role, such as accounting, marketing, research and development or distribution. The functional structure offers a number of potential advantages as well as disadvantages. An advantage of a functional organizational structure is that it offers a high level of specialization. Each unit operates as a type of self-contained mini-company, charged with carrying out its specific role. A worker who is an expert in his functional area can perform tasks with a high level of speed and efficiency, which enhances productivity. While specialized units within the functional structure often perform with a high level of efficiency, they may have difficulty working well with other units. Another potential disadvantage of the functional organization structure is that it can pose a challenge for top management to maintain control as the organization expands. If the company expands into new geographic areas, maintaining control of and managing the separate functions can be even more of a challenge. Kenexa, an IBM Company, provides employment and retention solutions to assist organizations in hiring and keeping workers. Kenexa is a SAAS, software as a service company, and utilizes a functional structure. Market structure is used to group employees on the basis of the specific market the company sells in....


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