Mgt/230 Organizational Structure

In: Business and Management

Submitted By bridgettem87
Words 760
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Organizational Structure
Bridgette R. Miller
MGT/230
March 1, 2013
Organizational Structure Since the beginning of organized business, owners and managers have had to delegate power and responsibilities. When doing this, managers have three different organizational structures to choose from. These options are functional structure, divisional structure, and matrix structure. Each structure has its own set of guidelines, as well as advantages and disadvantages. Knowing the aspects of all three structures can help a business run more efficiently. There are different ways an organization can divide its power, abilities, responsibilities, and roles. The way they choose to organize is called "organizational structure." It is important to know about organizational structure, especially if you are, or planning to become a manager. Knowing the way your company operates will help in planning and in delegating responsibilities. Even if you are not a manager, it is vital to know your own job responsibilities, and know who you are supposed to report to. "As the tasks of organizations become increasingly complex, the organization inevitably must be subdivided—that is, departmentalized —into smaller units or departments" (pg287).
Functional Organization In a functional organization, "departments are specialized and grouped according to business functions and the skills they require: production, marketing, human resources, research and development, finance, accounting, and so forth" (pg287). You can find this structure in both large and small organizations. There are several advantages to having people with similar skill sets grouped together. For example, more efficient equipment can be purchased, and the employees may develop a shared concern for their job performance. Communication is easier; terminology is generally the same within a small group…...

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