Wednesday 3 October 2012

Organizational Structure

Organizational structure refers to organizational sub units and the way they relate to the overall organization.

There are six types of organizational structures

  1. Flat
    • Flat organizational structure is an organizational structure with a reduced number of management structures.
    • Small venture company such as English communication helping company which has small number of employees. In the company , CEO only has the authority of decision making and others do not have.
  2. Traditional(Hierarchical)
    • Traditional Organizational Structure is a management pyramid that shows the decision making and authority from the strategic management to operational management and non  management employee.
    • A big IT company such as IBM uses this model because there is a CEO and amny directors in each departments also in the each team there are many general managers and they are decision making people and there are many employees who do not have a role of decision making.
  3. Project
    • Project Organizational Structure is centered on major products or services. 
    • In a manufacturing firm that produces baby food and other baby products, each line is produced by a separate unit(project).
  4. Team
    • Team Organizational Structures is centered on work team or groups.
    • An example is Harley Davidson, each team is responsible for developing a ccertain component of a motorbike.
  5. Multidimensional
    • Multidimensional Organizational Structure may incorporate several structures at the same time.
    • HP/Compaq, they have traditional structures such as accounting and project based structures for research and development.
  6. Virtual
    • Virtual Organizational Structure employs individuals, groups or complete business units in geographically dispersed area.
    • Most universities use the visual organizational structure to conduct worldwide reseach.

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