Four Types of Organisational Structure

Topics: Organizational structure, Organization, Management Pages: 10 (2760 words) Published: October 17, 2012

Title Page

I. Introduction 3

II. Functional Structure4-6

III. Geographical Structure7-9

IV. Product Structure10-12

V. Matrix Structure13-15

VI. Conclusion 16

VII. References 17


Organisational is a key element in a process of management. It is a system of structural relationship, all the way through which people under the path of managers, track their general goals. Members of an organisation require steady, perceptive structure within which they can work together toward organisational objectives. Organising is therefore the method by which an organisation is formally controlled into divisions or operational units and the structure of the firm is established. The end product of management process is organisational structure.

Organisational structure binds the all level of management personals together and brings them into proper development and co-ordination of organisation. It is tasks arrangement which is break up into a few divisions or departments and grouping it together under the management hierarchy to achieve the organisation objectives. Under the organisation structure, one single path will create to attach the tasks, work flow and communication channels between the personals and the various divisional peoples of organisation. Organisation structures smooth the progress of efficient management, direction and control. Every administration has to set up its own organisation structure for well-organized perform of business actions.

An organisation structure usually represent in graphical form which is called an organisation chart. Usually, the chart illustrated in the form of vertical, horizontal or concentric to define the authority and responsibilities of personals in various levels. The chart always created according to the existing departmentalisation of organisation. In departmentalisation, each personal from different job segments will work to achieve an aim of pre-determined organisational objectives. The departmentalisation is based on five structures, which is functions, products, consumers, geographical and matrix. In these papers, we will go through the justification of four structure which is function, product, geographical and matrix with sample organisational chart on each structure.


Sample Organisation Chart of Functional Structure.

Source: SIA Cargo Pte Ltd

Functional organisation structure is the most common and logical type of business unit that adhere by companies. In this structure, people are group together based on common skills and work activities. It focuses on single service and doesn’t need frequent changes in organisational hierarchy. Base on above organisational chart, we can notify that the total organisation system is coordinating by top management. For a proficient management function, the organisation breaks up into a few departments such as marketing, engineering, technology, operational and etc. Each departments lead by a senior manager or vice president who are reporting to a single authority, top management.

As the simplest approach, a functional structure sort well-defined channels of communication and influence relationship. Each department’s staff needs to report to their only functional unit’s manager and by doing this, the various business unit’s prevent any kind of misunderstanding or conflicts among them. The chart hierarchy is simplified, well-organised and the separation of tasks also well defined with layer by layer. The fewer layer of management will ease the expectation of top management and also improve the task co-ordination.

Decision making process is swift and authorities in functional structure. Because of the staffs in functional...
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