Organizational Structure Analysis
Adam Alderson, Angeles Roman, Kristopher Hilton, Chad Hulsey
MGT 230
June 16, 2014
Eve Morse

Organizational Structure Analysis There are three different organizational structures that a business can use. There is Functional Structure, which has each portion of the organization grouped according to purpose. There is Divisional Structure, which divides the organization by geographic area or types of product or market. There is also Matrix Structure, which uses both functional and product departments but also has workers from these departments reporting to a project manager. Each of these structure types has their advantages and drawbacks and we will discuss those. First, we will look at the Functional Structure. The Functional Structure has a single manager to oversee the work being done. This type also allows for many workers in the same field to collaborate and become very cohesive as a team where advancement is there for everyone. The downside to a Functional Structure is two fold. One problem is that different departments can argue over what falls under their umbrella of responsibilities. Another problem is that larger companies will have larger employee groups, which makes managing them become more difficult. Second, we examine the Divisional Structure. The Divisional Structure groups basic tasks into jobs and then groups those jobs into departments. This creates departments based on the final outcome of each job group. An advantage of this structure is the overall support web it creates for the company’s major objective. It also allows workers to concentrate on a single task or product, creating expertise among those employees. The only real disadvantage to this structure is the competition between departments. If left unchecked, this competition can lead to bad office politics and an unhappy work place. Lastly,