Organizational Structure

Topics: Organizational structure, Organization, Communication Pages: 9 (1245 words) Published: March 4, 2015
Background
This project will be looking at the organizational structure of Lime Jamaica (Montego Bay Head Office). Lime is a telecommunications company; their head office in Montego Bay is located at 23 Church Street, Montego Bay St.James. Lime is a public limited company. It is owned by Phil Bently. Lime specializes in phone and internet industry. Organizational structure is very important to a business because it is the framework of the business. Without an organizational structure there would be no order in the business depleting is efficiency. Organizational varies from business to business it depends on various factors. For example: If the business it big or small or if the business is specializing in just one area such as production. The researcher chose this topic because the organizational structure of a business is imperative if a business is to survive and make a profit

Literature Review
“An organizational structure can be viewed from different perspectives, Sociology, Economics and Psychology.” (Peter Stimpson, 2007) “An organizational structure is an arrangement of lines of authority, communications, rights and duties of an organization.” (Baligh, 2006).The Organizational structure of a business decides how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management. A structure depends on the organization's objectives and strategy. “In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence.” (Madura, 2007) Example: A company such as Cash & Money that sells multiple products may organize their structure so that groups are divided according to each product. There are several different types of organizational structures. The most commonly used are: Functional, Matrix, Divisional, Geographical and product. But the researcher will only be looking at the first three structures Functional Structure

This involves the structuring an organization around basic business functions such as production and operations, marketing and finance. This organizational structure is frequently used by small to medium-sized businesses and organizations that are relatively straight forward. The organization is divided into segments based on the functions when managing. This allows the organization to enhance the efficiencies of these functional groups. As an example, take a software company. Software engineers will only staff the entire software development department. This way, management of this functional group becomes easy and effective. In addition to such advantages, there can be disadvantage from an organizational perspective if the communication between the functional groups is not effective. In this case, the organization may find it difficult to achieve some organizational objectives at the end.

Divisional Structure
“These types of organizations divide the functional areas of the organization to divisions. Each division is equipped with its own resources in order to function independently. There can be many bases to define divisions. Divisions can be defined based on the geographical basis, products/services basis, or any other measurement. As an example, take a company such as General Electrics. It can have microwave division, turbine division, etc., and these divisions have their own marketing teams, finance teams, etc. In that sense, each division can be considered as a micro-company with the main organization.

Matrix Structure
“When it comes to matrix structure, the organization places the employees based on the function and the product. This is where employees report to multiple managers in a team situation” (Madura, 2007) The matrix structure gives the best of the both...

Bibliography: Baligh, H. H. (2006). Organization Structures: Theory and Design, Analysis and Prescription. Springer.
Jerald Hage, M. A. (1971). Organization Structure and Communications. American Sociological Association.
Johnson, J. D. (1993). Organizational Communication Structure. Ablex.
Madura, J. (2007). Introduction to Business. Thomson South-Western.
Peter Stimpson, K. S. (2007). Management f Business Unit 1. Cambridge.
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