Week 5 Assignment

Topics: Organizational structure, Insurance, Small business Pages: 4 (1146 words) Published: April 29, 2015

Week 5 – Assignment
1. Chapter 7 addresses organizational structures (how organizations group jobs and work functions into groups). For example, a hospital may have hundreds or thousands of employees while a private physician’s office may have just a few employees. For the organizations below, describe which organizational structure they would likely use and why:

• A small physician’s office
Smaller hospitals tend to have much simpler organizational structures. small business can use one of three primary organization structure options: functional, divisional or matrix. Essentially, the organizational structure creates a business hierarchy to increase the efficiency and effectiveness of the business operations. Different small businesses operate in different ways, so there is no one-size-fits-all solution every small business should choose for an organizational structure. You can, however, determine which of the most common structures works for your business.


When you establish a functional organizational structure, you are building a hierarchy based on the job role of each employee. Functional organizational structure groups together employees who work toward a common goal. For example, all of your marketing employees would be in the same group. Even if you only have two or three employees who fulfill the marketing role of your small business, you would structure it so one person is in charge, such as the vice president of marketing. His team would consist of a marketing manager and a public relations manager. The functional structure provides focus to the employees, because they know they are working toward a common goal. In this example, the common goal is marketing and promoting the business.


Divisional organizational structures decentralize the functional organizational structure because the roles of the employees are divided by product or region, rather than function, within your business. For example,...
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