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Hernandez, Patricia Tamayo, Justine

The document discusses different types of organization structures - functional, divisional, and matrix - outlining their advantages and disadvantages. A functional structure groups employees by specialty, while a divisional structure groups by purpose. A matrix combines these approaches. Choosing the right structure is important for an organization's success as it impacts decision-making, efficiency, productivity, and goals. Managers must analyze each structure's pros and cons to determine the best fit for their unique organization.

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24 views7 pages

Hernandez, Patricia Tamayo, Justine

The document discusses different types of organization structures - functional, divisional, and matrix - outlining their advantages and disadvantages. A functional structure groups employees by specialty, while a divisional structure groups by purpose. A matrix combines these approaches. Choosing the right structure is important for an organization's success as it impacts decision-making, efficiency, productivity, and goals. Managers must analyze each structure's pros and cons to determine the best fit for their unique organization.

Uploaded by

trish_hernandez_2
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Hernandez, Patricia Tamayo, Justine

Organization structures are the system of tasks,

workflows, reporting, relationships and communication channels that link together the work of diverse individuals and groups (Schermerhorn, 2010, p.238). Traditional organization structure is a factor for the business successful because it improves organizations decision-making, efficiency and productivity.

Functional Structure
grouped by similar work specialties, such as marketing,

accounting, engineering, or operations


Divisional Structure
grouped by similarity of purpose

Matrix Structure
combination of both functional and divisional structure

Advantages
promotes work

Disadvantages
lacks teamwork difficult management

specialization promotes centralized decision making increases efficiency and productivity enhances coordination and control

control limits view of organizational goals

Advantages
improves coordination improves employees

Disadvantages
increases cost increases

development provides better services quicker response to changes

communication challenges limits view of organizational goal

Advantages
improves performance improves decision-

Disadvantages
leads to power struggles loss of unity of command

making improves flexibility

It is very important for organizations to find the most suitable organization structure for them. Managers must first analyze the advantages and disadvantages of each structure so that they can decide which type of structure will best fit and benefit their organizations. The companies can also use multiple organization structure and may also switch from one structure to another to ensure that will contribute to organizational effectiveness.

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