essay on organizational structure

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Organization and Structure

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There is no single organizational pattern that works well for all writing across all disciplines; rather, organization depends on what you’re writing, who you’re writing it for, and where your writing will be read. In order to communicate your ideas, you’ll need to use a logical and consistent organizational structure in all of your writing. We can think about organization at the global level (your entire paper or project) as well as at the local level (a chapter, section, or paragraph). For an American academic situation, this means that at all times, the goal of revising for organization and structure is to consciously design your writing projects to make them easy for readers to understand. In this context, you as the writer are always responsible for the reader's ability to understand your work; in other words, American academic writing is writer-responsible. A good goal is to make your writing accessible and comprehensible to someone who just reads sections of your writing rather than the entire piece. This handout provides strategies for revising your writing to help meet this goal.

Note that this resource focuses on writing for an American academic setting, specifically for graduate students. American academic writing is of course not the only standard for academic writing, and researchers around the globe will have different expectations for organization and structure. The OWL has some more resources about writing for American and international audiences here .

Whole-Essay Structure

While organization varies across and within disciplines, usually based on the genre, publication venue, and other rhetorical considerations of the writing, a great deal of academic writing can be described by the acronym IMRAD (or IMRaD): Introduction, Methods, Results, and Discussion. This structure is common across most of the sciences and is often used in the humanities for empirical research. This structure doesn't serve every purpose (for instance, it may be difficult to follow IMRAD in a proposal for a future study or in more exploratory writing in the humanities), and it is often tweaked or changed to fit a particular situation. Still, its wide use as a base for a great deal of scholarly writing makes it worthwhile to break down here.

• Introduction : What is the purpose of the study? What were the research questions? What necessary background information should the reader understand to help contextualize the study? (Some disciplines include their literature review section as part of the introduction; some give the literature review its own heading on the same level as the other sections, i.e., ILMRAD.) Some writers use the CARS model to help craft their introductions more effectively.
• Methods: What methods did the researchers use? How was the study conducted? If the study included participants, who were they, and how were they selected?
• Results : This section lists the data. What did the researchers find as a result of their experiments (or, if the research is not experimental, what did the researchers learn from the study)? How were the research questions answered?
• Discussion : This section places the data within the larger conversation of the field. What might the results mean? Do these results agree or disagree with other literature cited? What should researchers do in the future?

Depending on your discipline, this may be exactly the structure you should use in your writing; or, it may be a base that you can see under the surface of published pieces in your field, which then diverge from the IMRAD structure to meet the expectations of other scholars in the field. However, you should always check to see what's expected of you in a given situation; this might mean talking to the professor for your class, looking at a journal's submission guidelines, reading your field's style manual, examining published examples, or asking a trusted mentor. Every field is a little different.

Outlining & Reverse Outlining

One of the most effective ways to get your ideas organized is to write an outline. A traditional outline comes as the pre-writing or drafting stage of the writing process. As you make your outline, think about all of the concepts, topics, and ideas you will need to include in order to accomplish your goal for the piece of writing. This may also include important citations and key terms. Write down each of these, and then consider what information readers will need to know in order for each point to make sense. Try to arrange your ideas in a way that logically progresses, building from one key idea or point to the next.

Questions for Writing Outlines

• What are the main points I am trying to make in this piece of writing?
• What background information will my readers need to understand each point? What will novice readers vs. experienced readers need to know?
• In what order do I want to present my ideas? Most important to least important, or least important to most important? Chronologically? Most complex to least complex? According to categories? Another order?

Reverse outlining comes at the drafting or revision stage of the writing process. After you have a complete draft of your project (or a section of your project), work alone or with a partner to read your project with the goal of understanding the main points you have made and the relationship of these points to one another. The OWL has another resource about reverse outlining here.

Questions for Writing Reverse Outlines

• What topics are covered in this piece of writing?
• In what order are the ideas presented? Is this order logical for both novice and experienced readers?
• Is adequate background information provided for each point, making it easy to understand how one idea leads to the next?
• What other points might the author include to further develop the writing project?

Organizing at the sentence and paragraph level

Signposting.

Signposting is the practice of using language specifically designed to help orient readers of your text. We call it signposting because this practice is like leaving road signs for a driver — it tells your reader where to go and what to expect up ahead. Signposting includes the use of transitional words and phrasing, and they may be explicit or more subtle. For example, an explicit signpost might say:

This section will cover Topic A­­ and Topic B­­­­­.

A more subtle signpost might look like this:

It's important to consider the impact of Topic A­­ and Topic B­­­­­.

The style of signpost you use will depend on the genre of your paper, the discipline in which you are writing, and your or your readers’ personal preferences. Regardless of the style of signpost you select, it’s important to include signposts regularly. They occur most frequently at the beginnings and endings of sections of your paper. It is often helpful to include signposts at mid-points in your project in order to remind readers of where you are in your argument.

Questions for Identifying and Evaluating Signposts

• How and where does the author include a phrase, sentence, or short group of sentences that explains the purpose and contents of the paper?
• How does each section of the paper provide a brief summary of what was covered earlier in the paper?
• How does each section of the paper explain what will be covered in that section?
• How does the author use transitional words and phrases to guide readers through ideas (e.g. however, in addition, similarly, nevertheless, another, while, because, first, second, next, then etc.)?

WORKS CONSULTED

Clark, I. (2006). Writing the successful thesis and dissertation: Entering the conversation . Prentice Hall Press.

Davis, M., Davis, K. J., & Dunagan, M. (2012). Scientific papers and presentations . Academic press.

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Understanding Organizational Structures

Organizational structure aligns and relates parts of an organization, so it can achieve its maximum performance. The structure chosen affects an organization's success in carrying out its strategy and objectives. Leadership should understand the characteristics, benefits and limitations of various organizational structures to assist in this strategic alignment.

Overview Background Business Case Key Elements of Organizational Structures Types of Organizational Structures

Vertical structures (functional and divisional)

Matrix organizational structures, open boundary structures (hollow, modular virtual and learning).

The Impact of Growth Stages on Organizational Structure Metrics Communications and Technology Global Issues Legal Issues

This article addresses the following topics related to organizational structure:

• The case for aligning organizational structure with the enterprise's business strategy.
• Key elements of organizational structure.
• Types of organizational structures and the possible benefits and limitations of each.
• The impact of an organization's stage of development on its structure.
• Communications, technology, metrics, global and legal issues.

Organizational structure is the method by which work flows through an organization. It allows groups to work together within their individual functions to manage tasks. Traditional organizational structures tend to be more formalized—with employees grouped by function (such as finance or operations), region or product line. Less traditional structures are more loosely woven and flexible, with the ability to respond quickly to changing business environments.

Organizational structures have evolved since the 1800s. In the Industrial Revolution, individuals were organized to add parts to the manufacture of the product moving down the assembly line. Frederick Taylor's scientific management theory optimized the way tasks were performed, so workers performed only one task in the most efficient way. In the 20th century, General Motors pioneered a revolutionary organizational design in which each major division made its own cars.

Today, organizational structures are changing swiftly—from virtual organizations to other flexible structures. As companies continue to evolve and increase their global presence, future organizations may embody a fluid, free-forming organization, member ownership and an entrepreneurial approach among all members. See  Inside Day 1: How Amazon Uses Agile Team Structures and Adaptive Practices to Innovate on Behalf of Customers .

Business Case

A hallmark of a well-aligned organization is its ability to adapt and realign as needed. To ensure long-term viability, an organization must adjust its structure to fit new economic realities without diminishing core capabilities and competitive differentiation. Organizational realignment involves closing the structural gaps impeding organizational performance.

Problems created by a misaligned organizational structure

Rapid reorganization of business units, divisions or functions can lead to ineffective, misaligned organizational structures that do not support the business. Poorly conceived reorganizations may create significant problems, including the following:

• Structural gaps in roles, work processes, accountabilities and critical information flows can occur when companies eliminate middle management levels without eliminating the work, forcing employees to take on additional responsibilities.
• Diminished capacity, capability and agility issues can arise when a) lower-level employees who step in when middle management is eliminated are ill-equipped to perform the required duties and b) when higher-level executives must take on more tactical responsibilities, minimizing the value of their leadership skills.
• Disorganization and improper staffing can affect a company's cost structure, cash flow and ability to deliver goods or services. Agile organizations can rapidly deploy people to address shifting business needs. With resources cut to the bone, however, most organizations' staff members can focus only on their immediate responsibilities, leaving little time, energy or desire to work outside their current job scope. Ultimately, diminished capacity and lagging response times affect an organization's ability to remain competitive.
• Declining workforce engagement can reduce retention, decrease customer loyalty and limit organizational performance and stakeholder value.

The importance of aligning the structure with the business strategy

The key to profitable performance is the extent to which four business elements are aligned:

Leadership. The individuals responsible for developing and deploying the strategy and monitoring results.

Organization. The structure, processes and operations by which the strategy is deployed.

Jobs. The necessary roles and responsibilities.

People. The experience, skills and competencies needed to execute the strategy.

An understanding of the interdependencies of these business elements and the need for them to adapt to change quickly and strategically are essential for success in the high-performance organization. When these four elements are in sync, outstanding performance is more likely.

Achieving alignment and sustaining organizational capacity requires time and critical thinking. Organizations must identify outcomes the new structure or process is intended to produce. This typically requires recalibrating the following:

• Which work is mission-critical, can be scaled back or should be eliminated.
• Existing role requirements, while identifying necessary new or modified roles.
• Key metrics and accountabilities.
• Critical information flows.
• Decision-making authority by organization level.

See  Meeting the Challenges of Developing Collaborative Teams for Future Success.

Key Elements of Organizational Structures

Five elements create an organizational structure: job design, departmentation, delegation, span of control and chain of command. These elements comprise an organizational chart and create the organizational structure itself. "Departmentation" refers to the way an organization structures its jobs to coordinate work. "Span of control" means the number of individuals who report to a manager. "Chain of command" refers to a line of authority.

The company's strategy of managerial centralization or decentralization also influences organizational structures. "Centralization," the degree to which decision-making authority is restricted to higher levels of management, typically leads to a pyramid structure. Centralization is generally recommended when conflicting goals and strategies among operating units create a need for a uniform policy. "Decentralization," the degree to which lower levels of the hierarchy have decision-making authority, typically leads to a leaner, flatter organization. Decentralization is recommended when conflicting strategies, uncertainty or complexity require local adaptability and decision-making.

Types of Organizational Structures

Organizational structures have evolved from rigid, vertically integrated, hierarchical, autocratic structures to relatively boundary-less, empowered, networked organizations designed to respond quickly to customer needs with customized products and services.

Today, organizations are usually structured vertically, vertically and horizontally, or with open boundaries. Specific types of structures within each of these categories are the following:

• Vertical — functional and divisional.
• Vertical and horizontal — matrix.
• Boundary-less (also referred to as "open boundary")—modular, virtual and cellular.

See  What are commonly-used organization structures?

Two main types of vertical structure exist, functional and divisional. The functional structure divides work and employees by specialization. It is a hierarchical, usually vertically integrated, structure. It emphasizes standardization in organization and processes for specialized employees in relatively narrow jobs.

This traditional type of organization forms departments such as production, sales, research and development, accounting, HR, and marketing. Each department has a separate function and specializes in that area. For example, all HR professionals are part of the same function and report to a senior leader of HR. The same reporting process would be true for other functions, such as finance or operations.

In functional structures, employees report directly to managers within their functional areas who in turn report to a chief officer of the organization. Management from above must centrally coordinate the specialized departments. 

A functional organizational chart might look something like this: 

Advantages of a functional structure include the following:

• The organization develops experts in its respective areas.
• Individuals perform only tasks in which they are most proficient.
• This form is logical and easy to understand.

Disadvantages center on coordination or lack thereof:

• People are in specialized "silos" and often fail to coordinate or communicate with other departments.
• Cross-functional activity is more difficult to promote.
• The structure tends to be resistant to change.

This structure works best for organizations that remain centralized (i.e., a majority of the decision-making occurs at higher levels of the organization) because there are few shared concerns or objectives between functional areas (e.g., marketing, production, purchasing, IT). Given the centralized decision-making, the organization can take advantage of economies of scale in that there are likely centralized purchasing functions.

An appropriate management system to coordinate the departments is essential. The management system may be a special leader, like a vice president, a computer system or some other format.

Also a vertical arrangement, a divisional structure most often divides work and employees by output, although a divisional structure could be divided by another variable such as market or region. For example, a business that sells men's, women's and children's clothing through retail, e-commerce and catalog sales in the Northeast, Southeast and Southwest could be using a divisional structure in one of three ways:

• Product—men's wear, women's wear and children's clothing.
• Market—retail store, e-commerce and catalog.
• Region—Northeast, Southeast and Southwest.

A divisional organizational structure might look like this:

The advantages of this type of structure are the following:

• It provides more focus and flexibility on each division's core competency.
• It allows the divisions to focus on producing specialized products while also using knowledge gained from related divisions.
• It allows for more coordination than the functional structure.
• Decision-making authority pushed to lower levels of the organization enables faster, customized decisions.

The disadvantages of this structure include the following:

• It can result in a loss of efficiency and a duplication of effort because each division needs to acquire the same resources.
• Each division often has its own research and development, marketing, and other units that could otherwise be helping each other.
• Employees with similar technical career paths have less interaction.
• Divisions may be competing for the same customers.
• Each division often buys similar supplies in smaller quantities and may pay more per item.

This type of structure is helpful when the product base expands in quantity or complexity. But when competition among divisions becomes significant, the organization is not adapting quickly enough, or when economies of scale are lacking, the organization may require a more sophisticated matrix structure.

A matrix structure combines the functional and divisional structures to create a dual-command situation. In a matrix structure, an employee reports to two managers who are jointly responsible for the employee's performance. Typically, one manager works in an administrative function, such as finance, HR, information technology, sales or marketing, and the other works in a business unit related to a product, service, customer or geography.

A typical matrix organizational structure might look like this:

Advantages of the matrix structure include the following:

• It creates a functional and divisional partnership and focuses on the work more than on the people.
• It minimizes costs by sharing key people.
• It creates a better balance between time of completion and cost.
• It provides a better overview of a product that is manufactured in several areas or sold by various subsidiaries in different markets.

Disadvantages of matrix organizations include the following:

• Responsibilities may be unclear, thus complicating governance and control.
• Reporting to more than one manager at a time can be confusing for the employee and supervisors.
• The dual chain of command requires cooperation between two direct supervisors to determine an employee's work priorities, work assignments and performance standards.
• When the function leader and the product leader make conflicting demands on the employee, the employee's stress level increases, and performance may decrease.
• Employees spend more time in meetings and coordinating with other employees.

These disadvantages can be exacerbated if the matrix goes beyond two-dimensional (e.g., employees report to two managers) to multidimensional (e.g., employees report to three or more managers).

Matrix structures are common in heavily project-driven organizations, such as construction companies. These structures have grown out of project structures in which employees from different functions formed teams until completing a project, and then reverted to their own functions. In a matrix organization, each project manager reports directly to the vice president and the general manager. Each project is, in essence, a mini profit center, and therefore, general managers usually make business decisions.

The matrix-structured organization also provides greater visibility, stronger governance and more control in large, complex companies. It is also well suited for development of business areas and coordination of complex processes with strong dependencies.

Matrix structures pose difficult challenges for professionals charged with ensuring equity and fairness across the organization. Managers working in matrix structures should be prepared to intervene via communication and training if the structure compromises these objectives. Furthermore, leadership should monitor relationships between managers who share direct reports. These relationships between an employee's managers are crucial to the success of a matrix structure.

More recent trends in structural forms remove the traditional boundaries of an organization. Typical internal and external barriers and organizational boxes are eliminated, and all organizational units are effectively and flexibly connected. Teams replace departments, and the organization and suppliers work as closely together as parts of one company. The hierarchy is flat; status and rank are minimal. Everyone—including top management, managers and employees—participates in the decision-making process. The use of 360-degree feedback performance appraisals is common as well.

Advantages of boundary-less organizations include the following:

• Ability to leverage all employees' talents.
• Faster response to market changes.
• Enhanced cooperation and information sharing among functions, divisions and staff.

Disadvantages include the following:

• Difficulty in overcoming silos inside the organization.
• Lack of strong leadership and common vision.
• Time-consuming processes.
• The possibility of employees being adversely affected by efficiency efforts.
• The possibility of organizations abandoning change if restructuring does not improve effectiveness quickly.

Boundary-less organizational structures can be created in varied forms, including hollow, modular and virtual organizations.

Hollow organizations. Hollow structures divide work and employees by core and noncore competencies. Hollow structures are an outsourcing model in which the organization maintains its core processes internally but outsources noncore processes. Hollow structures are most effective when the industry is price competitive and choices for outsourcing exist. An example of a hollow structure is a sports organization that has its HR functions (e.g., payroll and benefits) handled by outside organizations.

Advantages of this type of structure include the following:

• Minimizing overhead.
• Enabling the organization to focus on its core product and eliminating the need to develop expertise in noncore functions.

Disadvantages include:

• Loss of control over functions that affect employees regularly.
• Restriction by certain industries (e.g., health care) on the extent of outsourcing.
• Lack of competitive outsourcing options.

Modular organizations. Modular structures differ from hollow organizations in that components of a product are outsourced. Modular structures may keep a core part of the product in-house and outsource noncore portions of the product. Networks are added or subtracted as needs change. For a modular structure to be an option, the product must be able to be broken into chunks. For example, computer manufacturer Dell buys parts from various suppliers and assembles them at one central location. Suppliers at one end and customers at the other become part of the organization; the organization shares information and innovations with all. Customization of products and services results from flexibility, creativity, teamwork and responsiveness. Business decisions are made at corporate, divisional, project and individual team member levels.

Advantages include the following:

• Minimizing the specialization and specialists needed.
• Enabling the company to outsource parts supply and coordinate the assembly of quality products.

Disadvantages include concerns about the actions of suppliers outside the control of the core management company. Risk occurs if the partner organization removes itself form the quality check on the end product or if the outsourced organization uses a second outsourced organization. Examples of supplier concerns include the following:

• Suppliers, or subcontractors, must have access to—and safeguard—most, if not all, of the core company's data and trade secrets.
• Suppliers could suddenly raise prices on or cease production of key parts.
• Knowing where one organization ends and another begins may become difficult.

Virtual organizations. A virtual organization (sometimes called a network structure) is cooperation among companies, institutions or individuals delivering a product or service under a common business understanding. Organizations form partnerships with others—often competitors—that complement each other. The collaborating units present themselves as a unified organization.

The advantages of virtual structures include the following:

• Contributions from each part of the unit.
• Elimination of physical boundaries.
• Responsiveness to a rapidly changing environment.
• Lower or nonexistent organizational overhead.
• Allows companies to be more flexible and agile.
• Give more power to all employees to collaborate, take initiative, and make decisions.
• Helps employees and stakeholders understand workflows and processes.

The disadvantages of virtual organizations include the following:

• Potential lack of trust between organizations.
• Potential lack of organizational identification among employees.
• Need for increased communication.
• Can quickly become overly complex when dealing with lots of offsite processes.
• Can make it more difficult for employees to know who has final say.

Virtual structures are collaborative and created to respond to an exceptional and often temporary marketing opportunity. An example of a virtual structure is an environmental conservancy in which multiple organizations supply a virtual organization with employees to save, for example, a historic site, possibly with the intent of economic gain for the partners.

Understanding the organizational environment is crucial in open boundary models. For example, some industries cannot outsource noncore processes due to government regulation. (For example, health insurance organizations may be unable to outsource Medicare processes). Or, in some cases, outsourcing may have to be negotiated with a union.

The key to effective boundary-less organizations is placing adaptable employees at all levels. Management must give up traditional autocratic control to coach employees toward creativity and the achievement of organizational goals. Employees must apply initiative and creativity to benefit the organization, and reward systems should recognize such employees.

Learning organizations. A learning organization is one whose design actively seeks to acquire knowledge and change behavior as a result of the newly acquired knowledge. In learning organizations, experimenting, learning new things, and reflecting on new knowledge are the norms. At the same time, there are many procedures and systems in place that facilitate learning at all organization levels.

The advantages of learning organizations include the following:

• Open communication and information sharing.
• Innovativeness
• Ability to adapt to rapid change.
• Strong organizational performance.
• Competitive advantage.

The disadvantages of learning organizations include the following:

• Power difference is ignored.
• Process of implementing will be complicated and take longer.
• Fear of employee participation in organizational decisions.
• Breaking of existing organizational rules.

The Impact of Growth Stages on Organizational Structure

Organizations typically mature in a consistent and predictable manner. As they move through various stages of growth, they must address various problems. This process creates the need for different structures, management skills and priorities.

The four stages of development in an organization's life cycle include the following:

The beginning stage of development is characterized by an inconsistent growth rate, a simple structure and informal systems. At this stage the organization is typically highly centralized. "Dotcom" companies are a good example of startup companies.

The expansion stage is evidenced by rapid, positive growth and the emergence of formal systems. Organizations at this stage typically focus on centralization with limited delegation.

Consolidation

The consolidation stage is characterized by slower growth, departmentalization, formalized systems and moderate centralization.

Diversification

The diversification stage occurs when older, larger organizations experience rapid growth, bureaucracy and decentralization.

As an organization grows or passes from one stage of development to another, carefully planned and well-conceived changes in practices and strategies may be necessary to maximize effectiveness. There are no guarantees that an organization will make it from one stage to the next. In fact, a key opportunity for leadership is to recognize indicators that suggest an organization is in a risky or unhealthy stage and to make appropriate structural adjustments.

The art of organizational design is assessing the environment's essential aspects and their meaning for the organization's future. Translating those characteristics into the right structure is critical to increasing efficiency and controlling costs. When selecting the best structure for the organization, company leaders should examine and evaluate current key structural dimensions and contextual factors. See  How do I determine which HR metrics to measure and report?

Structural dimensions

Leaders can develop an understanding of the organization's internal environment through measurement and analysis of its structural dimensions. Key dimensions, which are usually measured through a survey, include:

Specialization. The extent to which an organization's activities are divided into specialized roles.

Standardization. The degree to which an organization operates under standard rules or procedures.

Formalization. The extent to which instructions and procedures are documented.

Centralization. The degree to which leaders at the top of the management hierarchy have authority to make certain decisions.

Configuration. The shape of the organization's role structure, which includes:

• Chain of command. The number of vertical levels or layers on the organizational chart.
• Span of control. The number of direct reports per manager or the number of horizontal levels or layers on the organizational chart.

Contextual factors

A review of contextual factors will provide a better understanding of the external environment and the relationship between the internal and external environment. Some of the significant contextual factors to consider in this review include:

Origin and history. Was the organization privately founded? What changes have occurred in ownership or location?

Ownership and control. Is the organization private or public? Is control divided among a few individuals or many?

Size. How many employees does the organization have? What are its net assets? What is its market position?

Location. How many operating sites does the organization maintain?

Productsand services. What types of goods and services does the organization manufacture and provide?

Technology. Are the organization's work processes effectively integrated?

Interdependence. What is the degree to which the organization depends on customers, suppliers, trade unions or other related entities?

After examining the structural dimensions and contextual factors and developing an understanding of the connection between an organization's structure and strategy, organization leaders can consider alternative structures. They may use diagnostic models and tools to guide the design process.

Communications and Technology

The last few years have seen an unprecedented expansion and improvement of online communication. Software has pushed the boundaries of workplace communication beyond e-mail into collaborative social media platforms and innovative intranets. The decline in traditional communication methods and the dramatic increase in cyber communication has had a major impact on the workplace and is leading to restructuring.

As organizations continue to restructure to remain competitive, communications can drive the transition to an effective new organizational structure. Research suggests that companies can positively affect their credibility with employees through various organizational communication programs.

In establishing internal communication channels, leadership must be aware of the advantages and shortcomings of communication technologies and match them to the organization's needs, strategic goals and structure. Employers should also be cognizant of, and be prepared to deal with, the common communication challenges in various organizational structures. For example, communications technology has enabled organizations to create virtual workplaces and teams. In a virtual team, members from various geographical locations work together on a task, communicating via e-mail, instant messaging, teleconferencing, videoconferencing and web-based workspaces. Although virtual teams have significant advantages—most notably reduced travel costs and flexibility in staffing and work schedules—they also pose challenges. Virtual teams often find coordinating team logistics and mastering new technologies difficult. Communication is also a major challenge because of the absence of visual (body language) and verbal (intonation) clues. Research suggests that organizations can overcome these challenges through effective support and training.

Global Issues

Organizational structures often need to change as companies expand around the globe. An organization's leaders should plan carefully before opening offices in another country.

Many issues arise when an employer plans to open an international branch, hire international workers and formulate a globalized strategy. Among the questions that must be answered are:

• How do human resource legal requirements and practices vary from country to country?
• Should HR officials at headquarters do the work, or should a company open HR offices in the other country?
• Should an organization hire consultants to handle local hiring and personnel services?

Unless employers have a sound HR strategy ready before leaping into another country, they could fail.

When an organization opens international offices, HR professionals and other business leaders should be able to communicate as effectively with workers across the globe as around the corner. That can be a challenge. Having a robust intranet and using videoconferencing are alternatives to face-to-face communication.

As rapid changes in technology affect global communication, employees must be aware of linguistic, cultural, religious and social differences among colleagues and business contacts. The organization should train all employees (not just managers and CEOs who travel) in cultural literacy.

Moreover, employers should be aware that language difficulties, time‐and‐distance challenges, the absence of face‐to‐face contact, and, above all, the barriers posed by cultural differences and personal communication styles make global virtual work far more complex than local structures. These practices can enhance global virtual team relationships:

• Using online chats, video- and audioconferencing in addition to one-on-one conversations and e-mail.
• Posting profiles of team members that outline their expertise and roles in the organization.
• Being sensitive to the level of engagement team members are likely to deliver if they must meet at inconvenient hours across multiple time zones.

Legal Issues

Regardless of the type of structure, employers must ensure compliance with legal requirements in the countries where their organizations operate. Some of those requirements will be quite extensive (for example, public companies must ensure compliance with the Sarbanes-Oxley Act, and most organizations must ensure compliance with the Fair Labor Standards Act and its related state laws). When organizational structures change, or if the chain of command is weak or fails to keep up-to-date with changes in the business, a company may have compliance problems because the structure has not been evaluated with regard to these laws. Imagine, for example, a restructuring that reduces the number of direct reports for an entire layer of management, which perhaps leads to those individuals no longer being exempt.

As an organization moves internationally, laws in the host countries must also be evaluated and a plan put in place for compliance before the expansion occurs. Employers must anticipate and plan for laws affecting all aspects of the employee experience, including hiring, benefits, leaves and termination.

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7 Organizational Structure Types (With Examples)

Updated: May 29, 2024, 5:39pm

Table of Contents

What is an organizational structure, 4 common types of organizational structures, 3 alternative organizational structures, how to choose the best organizational structure, frequently asked questions (faqs).

Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial. This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included.

Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.

Centralized vs. Decentralized

Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.

Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.

Hierarchical vs. Circular

A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.

On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next “level,” information flows out to the next ring of management.

Vertical vs. Flat

A vertical organizational chart has a clear chain of command with a small group of leaders at the top—or in the center, in the case of a circular structure—and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.

With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.

Benefits of Creating an Organizational Structure

There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Clearly disseminating this information to employees:

• Provides accountability
• Clarifies expectations
• Documents criteria for promotion
• Designates decision-making authority
• Creates efficiency
• Fosters collaboration

Essential Elements of Clear Organizational Structure

Regardless of the special type of organizational structure you choose, it should have the following components:

• Chain of command
• Roles and responsibilities
• Scope of control
• Decision-making authority
• Departments or teams within the organization

Functional/Role-Based Structure

A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority. A functional structure facilitates specialization, scalability and accountability. It also establishes clear expectations and has a well-defined chain of command. However, this structure runs the risk of being too confining and it can impede employee growth. It also has the potential for a lack of cross-department communication and collaboration.

Product- or Market-Based Structure

Along with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams.

Geographical Structure

The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. From a broad perspective, it appears very similar to the product-based structure above.

Process-Based Structure

Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. For instance, the structure can be broken down into R&D, product creation, order fulfillment, billing and customer services. This structure can foster efficiency, teamwork and specialization, but it can also create barriers between the teams if communication isn’t prioritized.

Matrix Structure

With a matrix organizational structure, there are multiple reporting obligations. For instance, a marketing specialist may have reporting obligations within the marketing and product teams. A matrix structure offers flexibility, enables shared resources and fosters collaboration within the company. However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees.

Circular Structure

Similar to the functional and product-based structure, a circular structure is also centralized and hierarchical, but instead of responsibility and decision-making authority flowing down vertically, responsibility and decision-making authority flow out from the center. A circular structure can promote communication and collaboration but can also be confusing, especially for new employees, because there is no clear chain of command.

Organic Structure

Unlike vertical structures, this structure facilitates communication between and among all staff. It is the most complex, but it can also be the most productive. Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees don’t feel like they have “superiors.” This structure can also be more cost-efficient because it reduces the need for middle managers.

There is no one “right” organizational structure. When deciding which structure will work best for your company, consider the following:

• Current roles and teams within the company. How are job functions currently organized? Does it foster communication and productivity? Does it impede or encourage employee growth?
• Your strategic plan. What are your company’s goals for the short-term and long-term?
• Feedback from employees, leadership and other stakeholders. What do those within your company say about how the company is structured? What feedback do you have from other stakeholders, such as customers and suppliers?
• Alignment. What structure will best support your strategic plans and address any feedback received?

What is the most common organizational structure?

A functional organizational structure is one of the most common organizational structures. If you are still determining what kind of structure to use, this organizational structure can be an excellent place to start.

What is the difference between an organizational structure and an organizational chart?

An organizational chart is a graphic that depicts the organizational structure. The chart may include job titles or it can be personalized to include names and photos.

What are the four types of organizational structures?

A functional—or role-based—structure is one of the most common organizational structures. The second type—the product- or market-based structure—is also hierarchical, vertical and centralized. Similar to these is the third structure—the process-based structure—which is structured in a way that follows a product’s or service’s life cycle. Lastly, the geographical structure is suitable for businesses with a broad geographic footprint.

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Home — Essay Samples — Business — Organizational Structure — Organizational Structure: Types and Efficiency

Organizational Structure: Types and Efficiency

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Essay on Organizational Structures

An organization’s organizational structure provides the framework for running and planning its activities. The hierarchy, organizational structure, and channels for communication and decision-making make up an organization (“ Organizational Structure ,” 2012). An organization’s performance and capacity to adapt to environmental changes are impacted by its organizational structure. This essay will contrast the benefits and drawbacks of mechanical and organic organizational structures. The gauge, discover, and reflect framework will also be covered.

Mechanistic Structure

The conventional method of organizational design is the mechanical structure. A hierarchical structure with distinct lines of authority and control characterizes it. It is an extremely organized, centralized process in which tasks are divided into distinct roles and responsibilities. The mechanical structure is ideal for organizations with a highly specialized workforce because it emphasizes efficiency and control.

Efficiency:  Mechanistic structures divide work into manageable, efficiently completed components to maximize efficiency and productivity, making it possible to make decisions quickly and help prevent wasting time on useless pursuits. A system in place enables tasks to be completed quickly and efficiently, increasing the organization’s overall effectiveness. It also ensures that resources are used as effectively as possible and that the final product is of the highest caliber.

Control:  By giving one person or group complete control and decision-making power, an organization can have much control over its actions, enabling the adoption of strict standards and the upkeep of output consistency. This structure ensures that those in charge can more effectively implement their vision and goals because decisions are made from the top down (“ Organizational Structure ,” 2012). Mechanistic structures help ensure the organization’s success.

Stability:  Mechanistic structures are highly organized and structured, giving the organization a higher level of stability. As a result, they are less susceptible to disturbances and changes from the outside world, which enables the organization to maintain stability and consistency. Due to its structural design, the organization is protected from outside influences and disruption to the greatest extent possible. This stability enables the organization to carry on operating without the need for significant modifications or changes.

Disadvantages

Rigidity:  Mechanistic structures are rigid and highly structured, and they can be challenging to alter or adapt to changing conditions. As a result, the company might become inert and need help to seize fresh opportunities.

Inefficiency:  If the structures are appropriately managed, they may result in efficiency. Tasks not broken down into manageable parts may take longer than necessary and require more departmental coordination.

Lack of Innovation:  Organizational structures may need more innovation by making the company too committed to upholding the status quo and closed to novel concepts, potentially leading to a lack of creativity and making it harder for the company to remain competitive.

Organic Structure

An alternative to the mechanical structure is the organic structure. A decentralized structure with adaptable roles and responsibilities best describes it. It is a flexible strategy emphasizing employee innovation and creativity (“ Organizational Structure ,” 2012). The organic structure prioritizes cooperation and teamwork and is ideal for businesses demanding innovation.

Flexibility:  Organic structures are designed to be more flexible, allowing for greater autonomy and creativity and enabling the organization to quickly adapt to changing circumstances and take advantage of new opportunities.

Innovation:  Greater innovation can result from organic organizational structures because they are more flexible and unrestricted by strict rules and regulations. Greater creativity may result from this, supporting the company’s ability to compete.

Collaboration:  Roles and responsibilities need to be more clearly defined in organic structures, which can increase departmental collaboration. Increased communication and problem-solving may result from this.

Inefficiency:  If organic structures are appropriately managed, they can result in efficiency. With clearly defined roles and responsibilities, tasks might be finished on time, and departmental coordination might improve.

Lack of Control:  Organic organizational structures can lack control because they are less centralized and less concerned with upholding the status quo. This results in inconsistent output and a lack of organization-wide discipline.

Uncertainty:  There may be uncertainty as the organization needs to be more structured and unpredictable with organic structures, resulting in the absence of predictability and making it challenging to make long-term plans.

Gauge, Discover, and Reflect Framework

The gauge, discover and reflect framework creates an effective organizational structure. Three steps make up the procedure: gauge, discover, and reflect. Organizations assess their current environment and gain an understanding of their current situation in the first step (“ Organizational Structure ,” 2012). Organizations identify the ideal situation and plan to get there in the second step. Organizations review their progress in the third step and make any necessary modifications.

The gauge, discover and reflect framework’s primary benefit is its future-oriented approach. Organizations can use the process to plan and create strategies to reach their objectives. The process also encourages organizations to evaluate their performance and adjust as necessary, encouraging ongoing development and keeping businesses on course.

The main disadvantage of the gauge, discover and reflect framework is its complexity. The process requires significant time and resources and may not be feasible for smaller organizations. The process also requires organizations to clearly understand their current situation and desired state, which can take time.

Organizational Chart

A sample organizational chart for a Pharmaceutical Company with a Functional Departmentalization Structure is shown in Figure 7.6. An overview of the Pharmaceutical organization’s structure, including its hierarchy and lines of authority, is given in this chart. The organization’s three primary levels comprise the board of directors, senior management, mid-management, and line management (“ Organizational Structure ,” 2012). Each level contributes to the organization’s success and has distinct roles and responsibilities.

A hospital organizational chart is shown in Figure 7.7. This diagram gives a broad overview of the hospital’s organizational structure, including its hierarchies and power relationships. The organization’s four primary levels are the Board of Directors, the Medical Director, the Nursing Director, and the Clinical Staff (“ Organizational Structure ,” 2012). Each level has specific tasks and obligations, and they all work together to make the hospital successful.

Any organization must have a clear organizational structure. Performance and the organization’s capacity to adapt to environmental changes are impacted. This essay has contrasted the benefits and drawbacks of mechanical and organic organizational structures. The gauge, discover, and reflect framework has also been covered. Finally, two examples of organizational charts have been given, one for a hospital and the other for a school district. To ensure their success, organizations must carefully consider their organizational structure.

Organizational Structure . (2012). 2012books.lardbucket.org. https://2012books.lardbucket.org/books/management-principles-v1.1/s11-02-organizational-structure.html

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9.3 Organizing Your Writing

Learning objectives.

• Understand how and why organizational techniques help writers and readers stay focused.
• Assess how and when to use chronological order to organize an essay.
• Recognize how and when to use order of importance to organize an essay.
• Determine how and when to use spatial order to organize an essay.

The method of organization you choose for your essay is just as important as its content. Without a clear organizational pattern, your reader could become confused and lose interest. The way you structure your essay helps your readers draw connections between the body and the thesis, and the structure also keeps you focused as you plan and write the essay. Choosing your organizational pattern before you outline ensures that each body paragraph works to support and develop your thesis.

This section covers three ways to organize body paragraphs:

• Chronological order
• Order of importance
• Spatial order

When you begin to draft your essay, your ideas may seem to flow from your mind in a seemingly random manner. Your readers, who bring to the table different backgrounds, viewpoints, and ideas, need you to clearly organize these ideas in order to help process and accept them.

A solid organizational pattern gives your ideas a path that you can follow as you develop your draft. Knowing how you will organize your paragraphs allows you to better express and analyze your thoughts. Planning the structure of your essay before you choose supporting evidence helps you conduct more effective and targeted research.

Chronological Order

In Chapter 8 “The Writing Process: How Do I Begin?” , you learned that chronological arrangement has the following purposes:

• To explain the history of an event or a topic
• To tell a story or relate an experience
• To explain how to do or to make something
• To explain the steps in a process

Chronological order is mostly used in expository writing , which is a form of writing that narrates, describes, informs, or explains a process. When using chronological order, arrange the events in the order that they actually happened, or will happen if you are giving instructions. This method requires you to use words such as first , second , then , after that , later , and finally . These transition words guide you and your reader through the paper as you expand your thesis.

For example, if you are writing an essay about the history of the airline industry, you would begin with its conception and detail the essential timeline events up until present day. You would follow the chain of events using words such as first , then , next , and so on.

Writing at Work

At some point in your career you may have to file a complaint with your human resources department. Using chronological order is a useful tool in describing the events that led up to your filing the grievance. You would logically lay out the events in the order that they occurred using the key transition words. The more logical your complaint, the more likely you will be well received and helped.

Choose an accomplishment you have achieved in your life. The important moment could be in sports, schooling, or extracurricular activities. On your own sheet of paper, list the steps you took to reach your goal. Try to be as specific as possible with the steps you took. Pay attention to using transition words to focus your writing.

Keep in mind that chronological order is most appropriate for the following purposes:

• Writing essays containing heavy research
• Writing essays with the aim of listing, explaining, or narrating
• Writing essays that analyze literary works such as poems, plays, or books

When using chronological order, your introduction should indicate the information you will cover and in what order, and the introduction should also establish the relevance of the information. Your body paragraphs should then provide clear divisions or steps in chronology. You can divide your paragraphs by time (such as decades, wars, or other historical events) or by the same structure of the work you are examining (such as a line-by-line explication of a poem).

On a separate sheet of paper, write a paragraph that describes a process you are familiar with and can do well. Assume that your reader is unfamiliar with the procedure. Remember to use the chronological key words, such as first , second , then , and finally .

Order of Importance

Recall from Chapter 8 “The Writing Process: How Do I Begin?” that order of importance is best used for the following purposes:

• Persuading and convincing
• Ranking items by their importance, benefit, or significance
• Illustrating a situation, problem, or solution

Most essays move from the least to the most important point, and the paragraphs are arranged in an effort to build the essay’s strength. Sometimes, however, it is necessary to begin with your most important supporting point, such as in an essay that contains a thesis that is highly debatable. When writing a persuasive essay, it is best to begin with the most important point because it immediately captivates your readers and compels them to continue reading.

For example, if you were supporting your thesis that homework is detrimental to the education of high school students, you would want to present your most convincing argument first, and then move on to the less important points for your case.

Some key transitional words you should use with this method of organization are most importantly , almost as importantly , just as importantly , and finally .

During your career, you may be required to work on a team that devises a strategy for a specific goal of your company, such as increasing profits. When planning your strategy you should organize your steps in order of importance. This demonstrates the ability to prioritize and plan. Using the order of importance technique also shows that you can create a resolution with logical steps for accomplishing a common goal.

On a separate sheet of paper, write a paragraph that discusses a passion of yours. Your passion could be music, a particular sport, filmmaking, and so on. Your paragraph should be built upon the reasons why you feel so strongly. Briefly discuss your reasons in the order of least to greatest importance.

Spatial Order

As stated in Chapter 8 “The Writing Process: How Do I Begin?” , spatial order is best used for the following purposes:

• Helping readers visualize something as you want them to see it
• Evoking a scene using the senses (sight, touch, taste, smell, and sound)
• Writing a descriptive essay

Spatial order means that you explain or describe objects as they are arranged around you in your space, for example in a bedroom. As the writer, you create a picture for your reader, and their perspective is the viewpoint from which you describe what is around you.

The view must move in an orderly, logical progression, giving the reader clear directional signals to follow from place to place. The key to using this method is to choose a specific starting point and then guide the reader to follow your eye as it moves in an orderly trajectory from your starting point.

Pay attention to the following student’s description of her bedroom and how she guides the reader through the viewing process, foot by foot.

Attached to my bedroom wall is a small wooden rack dangling with red and turquoise necklaces that shimmer as you enter. Just to the right of the rack is my window, framed by billowy white curtains. The peace of such an image is a stark contrast to my desk, which sits to the right of the window, layered in textbooks, crumpled papers, coffee cups, and an overflowing ashtray. Turning my head to the right, I see a set of two bare windows that frame the trees outside the glass like a 3D painting. Below the windows is an oak chest from which blankets and scarves are protruding. Against the wall opposite the billowy curtains is an antique dresser, on top of which sits a jewelry box and a few picture frames. A tall mirror attached to the dresser takes up most of the wall, which is the color of lavender.

The paragraph incorporates two objectives you have learned in this chapter: using an implied topic sentence and applying spatial order. Often in a descriptive essay, the two work together.

The following are possible transition words to include when using spatial order:

• Just to the left or just to the right
• On the left or on the right
• Across from
• A little further down
• To the south, to the east, and so on
• A few yards away
• Turning left or turning right

On a separate sheet of paper, write a paragraph using spatial order that describes your commute to work, school, or another location you visit often.

Collaboration

Please share with a classmate and compare your answers.

Key Takeaways

• The way you organize your body paragraphs ensures you and your readers stay focused on and draw connections to, your thesis statement.
• A strong organizational pattern allows you to articulate, analyze, and clarify your thoughts.
• Planning the organizational structure for your essay before you begin to search for supporting evidence helps you conduct more effective and directed research.
• Chronological order is most commonly used in expository writing. It is useful for explaining the history of your subject, for telling a story, or for explaining a process.
• Order of importance is most appropriate in a persuasion paper as well as for essays in which you rank things, people, or events by their significance.
• Spatial order describes things as they are arranged in space and is best for helping readers visualize something as you want them to see it; it creates a dominant impression.

Writing for Success Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

10.1 Organizational Structures and Design

• What are mechanistic versus organic organizational structures?

First, an organizational structure is a system for accomplishing and connecting the activities that occur within a work organization. People rely on structures to know what work they should do, how their work supports or relies on other employees, and how these work activities fulfill the purpose of the organization itself.

Second, organizational design is the process of setting up organizational structures to address the needs of an organization and account for the complexity involved in accomplishing business objectives.

Next, organizational change refers to the constant shifts that occur within an organizational system—for example, as people enter or leave the organization, market conditions shift, supply sources change, or adaptations are introduced in the processes for accomplishing work. Through managed change , leaders in an organization can intentionally shape how these shifts occur over time.

Finally, organizational development (OD) is the label for a field that specializes in change management. OD specialists draw on social science to guide change processes that simultaneously help a business achieve its objectives while generating well-being for employees and sustainable benefits for society. An understanding of OD practices is essential for leaders who want to maximize the potential of their organizations over a long period of time.

Together, an understanding of these concepts can help managers know how to create and direct organizations that are positioned to successfully accomplish strategic goals and objectives. 1

To understand the role of organizational structure, consider the experience of Justin, a young manager who worked for a logistics and transportation company. Their success at leading change in the United States gave their leaders the confidence that Justin could handle a challenging assignment: organize a new supply chain and distribution system for a company in Northern Europe. Almost overnight, Justin was responsible for hiring competent people, forming them into a coherent organization, training them, and establishing the needed infrastructure for sustained success in this new market.

If you were given this assignment, what would you do? How would you organize your employees? How would you help them understand the challenge of setting up a new organization and system? These are the kinds of questions that require an understanding of organizational structure, organizational design, organizational change, and organizational development.

One of the first issues Justin will need to address deals with how they will organize the system. “The decisions about the structure of an organization are all related to the concept of organizational design. There are two fundamental forms of structure to remember when designing an organization.

To address these questions, we need to be familiar with two fundamental ways of building an organization.

The formal organization is an officially defined set of relationships, responsibilities, and connections that exist across an organization. The traditional organizational chart, as illustrated in Exhibit 10.2 , is perhaps the most common way of depicting the formal organization. The typical organization has a hierarchical form with clearly defined roles and responsibilities.

When Justin sets up the formal organization, they will need to design the administrative responsibilities and communication structures that should function within an organizational system. The formal systems describe how flow of information and resources should occur within an organization. To establish the formal organization, they will identify the essential functions that need to be part of the system, and they will hire people to fill these functions. They will then need to help employees learn their functions and how these functions should relate to one another.

The informal organization is sometimes referred to as the invisible network of interpersonal relationships that shape how people actually connect with one another to carry out their activities. The informal organization is emergent, meaning that it is formed through the common conversations and relationships that often naturally occur as people interact with one another in their day-to-day relationships. It is usually complex, impossible to control, and has the potential to significantly influence an organization’s success.

As depicted in Exhibit 10.3 , the informal organization can also be mapped, but it is usually very different than the formal organization. The chart you see in this example is called a network map, because it depicts the relationships that exist between different members of a system. Some members are more central than others, and the strength of relationships may vary between any two pairs or groups of individuals. These relationships are constantly in flux, as people interact with new individuals, current relationships evolve, and the organization itself changes over time. 2

The informal organization in Justin’s design will form as people begin interacting with one another to accomplish their work. As this occurs, people will begin connecting with one another as they make sense of their new roles and relationships. Usually, the informal organization closely mirrors the formal organization, but often it is different. People quickly learn who the key influencers are within the system, and they will begin to rely on these individuals to accomplish the work of the organization. The informal organization can either help or hinder an organization’s overall success.

In sum, the formal organization explains how an organization should function, while the informal organization is how the organizational actually functions. Formal organization will come as Justin hires and assigns people to different roles. They can influence the shape of the informal organization by giving people opportunities to build relationships as they work together. Both types of structures shape the patterns of influence, administration, and leadership that may occur through an organizational system.

As we continue our discussion of structure and design, we will next examine different ways of understanding formal structure.

Types of Formal Organizational Structures

Now, Justin will need to choose and implement an administrative system for delegating duties, establishing oversight, and reporting on performance. They will do this by designing a formal structure that defines the responsibilities and accountability that correspond to specific duties throughout an organizational system. In this section, we’ll discuss the factors that any manager should consider when designing an organizational structure.

Bureaucracy

One of the most common frameworks for thinking about these issues is called the bureaucratic model . It was developed by Max Weber, a 19th-century sociologist. Weber’s central assumption was that organizations will find efficiencies when they divide the duties of labor, allow people to specialize, and create structure for coordinating their differentiated efforts, usually within a hierarchy of responsibility. He proposed five elements of bureaucracy that serve as a foundation for determining an appropriate structure: specialization, command-and-control, span of control, centralization, and formalization. 3

Specialization

The degree to which people are organized into subunits according to their expertise is referred to as specialization —for example, human resources, finance, marketing, or manufacturing. It may also include specialization within those functions. For instance, people who work in a manufacturing facility may be well-versed in every part of a manufacturing process, or they may be organized into specialty units that focus on different parts of the manufacturing process, such as procurement, material preparation, assembly, quality control, and the like.

Command-and-Control

The next element to consider is the reporting and oversight structure of the organization. Command-and-control refers to the way in which people report to one another or connect to coordinate their efforts in accomplishing the work of the organization.

Span of Control

Another question addresses the scope of the work that any one person in the organization will be accountable for, referred to as span of control . For instance, top-level leaders are usually responsible for all of the work of their subordinates, mid-level leaders are responsible for a narrower set of responsibilities, and ground-level employees usually perform very specific tasks. Each manager in a hierarchy works within the span of control of another manager at a level of the organization.

Centralization

The next element to consider is how to manage the flows of resources and information in an organization, or its centralization . A highly centralized organization concentrates resources in only one or very few locations, or only a few individuals are authorized to make decisions about the use of resources. In contrast, a diffuse organization distributes resources more broadly throughout an organizational system along with the authority to make decisions about how to use those resources.

Formalization

The last element of bureaucracy, formalization , refers to the degree of definition in the roles that exist throughout an organization. A highly formalized system (e.g., the military) has a very defined organization, a tightly structured system, in which all of the jobs, responsibilities, and accountability structures are very clearly understood. In contrast, a loosely structured system (e.g., a small, volunteer nonprofit) relies heavily on the emergent relationships of informal organization.

Mechanistic and Organic Structures

Using the principles of bureaucracy outlined above, managers like Justin have experimented with many different structures as way to shape the formal organization and potentially to capture some of the advantages of the informal organization. Generally, the application of these principles leads to some combination of the two kinds of structures that can be seen as anchors on a continuum (see Table 10.1 ).

On one end of the continuum is mechanistic bureaucratic structure . This is a strongly hierarchical form of organizing that is designed to generate a high degree of standardization and control. Mechanistic organizations are often characterized by a highly vertical organizational structure , or a “tall” structure, due to the presence of many levels of management. A mechanistic structure tends to dictate roles and procedure through strong routines and standard operating practices.

In contrast, an organic bureaucratic structure relies on the ability of people to self-organize and make decisions without much direction such that they can adapt quickly to changing circumstances. In an organic organization, it is common to see a horizontal organizational structure , in which many individuals across the whole system are empowered to make organizational decision. An organization with a horizontal structure is also known as a flat organization because it often features only a few levels of organizational hierarchy.

The principles of bureaucracy outlined earlier can be applied in different ways, depending on the context of the organization and the managers’ objectives, to create structures that have features of either mechanistic or organic structures.

For example, the degree of specialization required in an organization depends both on the complexity of the activities the organization needs to account for and on the scale of the organization. A more organic organization may encourage employees to be both specialists and generalists so that they are more aware of opportunities for innovation within a system. A mechanistic organization may emphasize a strong degree of specialization so that essential procedures or practices are carried out with consistency and predictable precision. Thus, an organization’s overall objectives drive how specialization should be viewed. For example, an organization that produces innovation needs to be more organic, while an organization that seeks reliability needs to be more mechanistic.

Similarly, the need for a strong environment of command-and-control varies by the circumstances of each organization. An organization that has a strong command-and-control system usually requires a vertical, tall organizational administrative structure. Organizations that exist in loosely defined or ambiguous environments need to distribute decision-making authority to employees, and thus will often feature a flat organizational structure.

The span of control assigned to any specific manager is commonly used to encourage either mechanistic or organic bureaucracy. Any manager’s ability to attend to responsibilities has limits; indeed, the amount of work anyone can accomplish is finite. A manager in an organic structure usually has a broad span of control, forcing her to rely more on subordinates to make decisions. A manager in a mechanistic structure usually has a narrow span of control so that they can provide more oversight. Thus, increasing span of control for a manager tends to flatten the hierarchy while narrowing span of control tends to reinforce the hierarchy.

Centralization addresses assumptions about how an organization can best achieve efficiencies in its operations. In a mechanistic structure, it is assumed that efficiencies will occur in the system if the resources and decisions flow through in a centralized way. In an organic system, it is assumed that greater efficiencies will be seen by distributing those resources and having the resources sorted by the users of the resources. Either perspective may work, depending on the circumstances.

Finally, managers also have discretion in how tightly they choose to define the formal roles and responsibilities of individuals within an organization. Managers who want to encourage organic bureaucracy will resist the idea of writing out and tightly defining roles and responsibilities. They will encourage and empower employees to self-organize and define for themselves the roles they wish to fill. In contrast, managers who wish to encourage more mechanistic bureaucracy will use tools such as standard operating procedures (SOPs) or written policies to set expectations and exercise clear controls around those expectations for employees.

When a bureaucratic structure works well, an organization achieves an appropriate balance across all of these considerations. Employees specialize in and become highly advanced in their ability to perform specific functions while also attending to broader organizational needs. They receive sufficient guidance from managers to stay aligned with overall organizational goals. The span of control given to any one manager encourages them to provide appropriate oversight while also relying on employees to do their part. The resources and decision-making necessary to accomplish the goals of the organization are efficiently managed. There is an appropriate balance between compliance with formal policy and innovative action.

Business Structures

Aside from the considerations outlined above, organizations will often set structures according to the functional needs of the organization. A functional need refers to a feature of the organization or its environment that is necessary for organizational success. A business structure is designed to address these organizational needs. There are two common examples of functional structures illustrated here.

Product structures exist where the business organizes its employees according to product lines or lines of business. For example, employees in a car company might be organized according to the model of the vehicle that they help to support or produce. Employees in a consulting firm might be organized around a particular kind of practice that they work in or support. Where a functional structure exists, employees become highly attuned to their own line of business or their own product.

Geographic structures exist where organizations are set up to deliver a range of products within a geographic area or region. Here, the business is set up based on a territory or region. Managers of a particular unit oversee all of the operations of the business for that geographical area.

In either functional structure, the manager will oversee all the activities that correspond to that function: marketing, manufacturing, delivery, client support systems, and so forth. In some ways, a functional structure is like a smaller version of the larger organization—a smaller version of the bureaucracy that exists within the larger organization.

One common weakness of a bureaucratic structure is that people can become so focused on their own part of the organization that they fail to understand or connect with broader organizational activities. In the extreme, bureaucracy separates and alienates workers from one another. These problems can occur when different parts of an organization fail to communicate effectively with one another.

Some organizations set up a matrix structure to minimize the potential for these problems. A matrix structure describes an organization that has multiple reporting lines of authority. For example, an employee who specializes in a particular product might have both the functional reporting line and a geographic reporting line. This employee has accountability in both directions. The functional responsibility has to do with her specialty as it correlates with the strategy of the company as a whole. However, her geographic accountability is to the manager who is responsible for the region or part of the organization in which she is currently working. The challenge is that an employee may be accountable to two or more managers, and this can create conflict if those managers are not aligned. The potential benefit, however, is that employees may be more inclined to pay attention to the needs of multiple parts of the business simultaneously.

Concept Check

• What is an organizational structure?
• What are different types of organizational structures?
• What is organizational design?
• What concepts should guide decisions about how to design structures?

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Organizational Structure, Essay Example

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The organizational structure that should be adopted by companies is one that will maximize the firm’s performance by attaining balance between the technical and the social requirements. Since an organization entails coordination of activities amongst different stakeholders of the company, there is the need to develop powerful communication network and make sure that there is apparent understanding of interdependencies and relationships among the different members of the organization (Baligh, 2006). This will make the organization process simple and meet the objectives of the organization in a cost-effective manner. The system managers in a given organization should ensure that the managers are allocated different responsibilities in their different departments of the company and their responsibilities coordinated by the systems managers.

Organizational change is a tough activity to undertake, therefore, it is advisable to make announcement after consulting all the stakeholders in the company. Making announcements without informing all the members who will be affected by the announcement will spark some resistance. There is need before making any announcement to answer employees’ questions as well as responding to their issues and communicating all the elements contained in the announcement. Any appointment of the manager will be made during the announcement, which after consulting the entire major stakeholders in the company (Baligh, 2006).

While restructuring the organizational structure of the company it is essential that system managers invite all the stakeholders of the company and other consultants. This will ensure that feasible management decisions are made to avoid any conflict that may arise while implementing the management decisions.

In order to train people in the company concerning the organizational structure of the company, there is need to undertake it in an outside seminars. Outside seminars will eliminate the bore down on the usual environment and will impact the trainees on matters related to organization of the company (Hall & Tolbert, 2005).

The matrix organization structure has many complicated and it is not simple to adopt it. In this structure the organization is divided as per the functions and their services/products. For example, a company which produces consumer goods may have three functional divisions: personal care, foods, and cleaning products. In the same company, it may have three functional divisions, which include marketing, research and development, and distribution (Baligh, 2006). Therefore, every individual in the company serves two divisions, one product, and functional division. Consequently, this structure is confusing to both the employees and the managers. The matrix structure is extremely encouraging of knowledge sharing and collaboration between divisions. The matrix structure is not devoid of challenges, though. Since workers in a matrix organization report to two departments, there might be conflicts in their responsibilities.

Downfall of functional managers arises when these managers do not understand their responsibilities where their functions are not well defined in the organization. This will eventually lead to potential conflicts, which will affect their performance. Downfall among the functional managers develops poor reporting systems that do not meet the communication structures set by the company. This is true for the situation of matrix structure that has not clear structures. In some cases, the functional managers can delegate some management roles to inexperienced staff leading poor performance of tasks or projects being undertaken by the firm. Therefore, lack of understanding of their roles by the functional managers is the leading cause of downfall because conflicts always arise in such circumstances (Baligh, 2006).

Baligh, H. H. (2006). Organization structures: Theory and design, analysis and prescription . New York, NY: Springer.

Hall, R. H., & Tolbert, P. S. (2005). Organizations: Structures, processes, and outcomes. Upper Saddle River, N.J: Pearson Prentice Hall.

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Fundamental of Organizational Structure Essay

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Introduction

Planning the organization.

Organization structure is an organized plan or the way of arranging and allocating work to all members for the smooth running of the organization so that the goals can efficiently be reached. This is done by dividing all important areas of the organization and linking them together with employees. This is done to obtain a whole working unit where all the parts coordinate together in delivering the organization’s services. The breaking down of these structures will lead to job greater and higher output for every employee. (Brown, 2001).

The organization whose structure I am going to write about is a furniture manufacturing firm. This firm deals with the manufacturing of furniture by designing them, manufacturing, marketing, and distributing the products to the buyers.

The tasks to be completed to accomplish this mission involves.

• The suppliers who are going to provide raw materials to the industry should be identified. A person who is going to ensure that a constant supply of the raw material to the factory is constant should also be identified. Selection of his/her assistance should also be done.
• Designers of different genres and different kinds of furniture should be identified. This is to satisfy the customer’s taste because various designs will enable them to have a wider choice as concerns to their preferences. There should also be a supervisor to ensure that the work done by the designer is in line with those of the client. He/she will also be responsible for advising the designers in the ways of improving their designs by the changes taking place.
• There should be a production area where the designs which have been drawn will be translated into an actual item. This area will consist of craftsmen or carpenters. There should also be a supervisor to coordinate the development taking place at the design level. He will also be ensuring that the designs which are put on paper will be the exact ones that are being produced. He/she will also be responsible for assessing the amount of work taking place, and if in some way it can be replaced by machines.
• The produced products should be introduced to the consumers by advertising it or by displaying, therefore people dealing with this kind of work should be identified. The team will also be responsible for convincing the buyers to buy the items by displaying their unique features. They will also be responsible for analyzing the requirements of the consumer and putting them on paper to be designed by designers.
• After producing the final product, this product should be ensured that it reaches the final consumer. Therefore, the product has to be ferried to a destination that is close enough to the consumer for easy buy. Therefore, the necessary personnel who will perform this chore should also be identified.
• There should be a unit that will be responsible for the company’s development analysis. This will involve keeping records and balancing the company’s financial records. This will help in monitoring the progress of the firm.
• Personnel rights and also their performance and their recruitment should be handled. Therefore a unit handling issues related to employees in the firm should be set up. They will also be responsible for identifying any gaps and filling them whenever an employee is needed.
• The firm should also have general supervision to ensure that every unit is working by the description of their relevant work. He will also be solving any cases which might arise in day to day running of the firm.

The organization chart below will demonstrate the organizational structure of this firm in detail. (Worthington, & Blyth 2001 p:45).

• Supply – will deal with the supplying of raw material to the firming by ensuring that the firm’s raw materials are constantly available.
• Design – this unit will be responsible for designing different kinds of products which will capture the consumer’s attention. They will also be responsible for noting the customer’s preferences and designing them on paper.
• Production – the designer’s drawings are translated into the real product.
• Finance – this structure will deal with the analysis of the company’s progress in terms of profits making is concerned. They ensure that various records are recorded as it is required.
• Sales and marketing – this structure will deal with the marketing of this product by introducing it to consumers
• Personnel – is responsible for handling all the cases concerning the rights and the performance of the employers.
• Distribution – will be responsible for distributing the firm’s product closer to the consumers.
• General Manager – he/she will be responsible for ensuring that all the structures in the organization are coordinating well. (Casson,2001)

Conduction business in two places might be a real problem for many businessmen. This is because many issues arise. These involve.

• The information flow between different structures in the two organizations will be hindered. This may cause inefficiency because different departments will not be able to work
• There is also the problem of inefficient management and monitoring of the business. This is so because having two businesses requires one to travel from one place to another to ensure that the business is progressing well.
• Having two businesses in different locations means that more employees have to be hired which might result in arising of many issues dealing with the settling of employees cases.
• Timing – having businesses in two locations will lead to poor timing because the work schedules between the two businesses may collide. This may lead to a lack of coordination between the different departments.

The following is an organization chart that includes two businesses.

As the business grows by five more locations, the communication network between the two companies should be established. This can either be done by either using phones with the company’s network or by using the company’s computer network interconnected by a central server.

The issues of untimely coordination when conducting various transaction or when providing services arises. This is so because the information dispersed to various branches might not reach there in time.

Also, the monitoring of various workflows might be a tedious process because all areas should cooperate in order to ensure that there is no branch which is disadvantaged. The following is an organizational chart that includes five branches.

Brown, Stephen A. communication in the design process. London. Spons press. 2001.

Worthington, & Blyth Alastain. Managing the brief for better design. London. Spon press 2001.

Casson, mark. Information and organization.A new perspective on the theory of firm. Oxford, England oxford university press. 2001.

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IvyPanda. (2021, September 18). Fundamental of Organizational Structure. https://ivypanda.com/essays/fundamental-of-organizational-structure/

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Organizational tips for academic essays

Published on November 10, 2014 by Shane Bryson . Revised on August 9, 2024.

This article presents some tips to help you figure out how best to structure your essay .

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Table of contents

Four tips for organization, other interesting articles.

In general, the purpose of the essay should dictate the organization of the essay—ask yourself what claims you need to establish in order for your reader to believe that your main claim is right. The claims that help establish your main claim are called “supporting claims.”

In many cases, each supporting claim will get a paragraph. When you’re outlining, try to phrase these supporting claims as rough topic sentences . In some cases, these supporting claims will also require some argument in order for your reader to believe them. If this happens, consider adding an additional argument or two in separate paragraphs to help establish your supporting claim.

Once you get a sense of the supporting claims that will form the basis of your paragraphs , consider the following tips:

Arguments usually proceed from the simplest claim to the most complex

In other words, the body of a good argumentative essay often begins with the more simple and widely accepted claims, and then moves to the more complex and contentious ones. There are a couple of reasons for this:

• Often, a reader must understand the more basic claims before she can understand the more complex claims.
• If you begin with a point your readers agree on without much trouble, you can build on this agreement to convince them of something more contentious.

Give the background early

If you have so much background information that it cannot be given precisely enough in the introduction , this information will usually lead the body of the essay , or the section that it is relevant to.

Define terms as needed

Technical language should be defined as or before it’s used—never wait very long to define a term you’ve used:

• If you can, define your terms as you use them.
• If you have so much technical language that defining terms as you use them is too interruptive, take a paragraph or so to define the terms and show how they relate to each other.

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Organizing Your Writing

Learning objectives.

• Understand how and why organizational techniques help writers and readers stay focused.
• Assess how and when to use chronological order to organize an essay.
• Recognize how and when to use order of importance to organize an essay.
• Determine how and when to use spatial order to organize an essay.

The method of organization you choose for your essay is just as important as its content. Without a clear organizational pattern, your reader could become confused and lose interest. The way you structure your essay helps your readers draw connections between the body and the thesis, and the structure also keeps you focused as you plan and write the essay. Choosing your organizational pattern before you outline ensures that each body paragraph works to support and develop your thesis.

This section covers three ways to organize body paragraphs:

• Chronological order
• Order of importance
• Spatial order

When you begin to draft your essay, your ideas may seem to flow from your mind in a seemingly random manner. Your readers, who bring to the table different backgrounds, viewpoints, and ideas, need you to clearly organize these ideas in order to help process and accept them.

A solid organizational pattern gives your ideas a path that you can follow as you develop your draft. Knowing how you will organize your paragraphs allows you to better express and analyze your thoughts. Planning the structure of your essay before you choose supporting evidence helps you conduct more effective and targeted research.

Chronological Order

In Chapter 8 “The Writing Process: How Do I Begin?”, you learned that chronological arrangement has the following purposes:

• To explain the history of an event or a topic
• To tell a story or relate an experience
• To explain how to do or to make something
• To explain the steps in a process

Chronological order is mostly used in expository writing , which is a form of writing that narrates, describes, informs, or explains a process. When using chronological order, arrange the events in the order that they actually happened, or will happen if you are giving instructions. This method requires you to use words such as first , second , then , after that , later , and finally . These transition words guide you and your reader through the paper as you expand your thesis.

For example, if you are writing an essay about the history of the airline industry, you would begin with its conception and detail the essential timeline events up until present day. You would follow the chain of events using words such as first , then , next , and so on.

Writing at Work

Choose an accomplishment you have achieved in your life. The important moment could be in sports, schooling, or extracurricular activities. On your own sheet of paper, list the steps you took to reach your goal. Try to be as specific as possible with the steps you took. Pay attention to using transition words to focus your writing.

Keep in mind that chronological order is most appropriate for the following purposes:

• Writing essays containing heavy research
• Writing essays with the aim of listing, explaining, or narrating
• Writing essays that analyze literary works such as poems, plays, or books

When using chronological order, your introduction should indicate the information you will cover and in what order, and the introduction should also establish the relevance of the information. Your body paragraphs should then provide clear divisions or steps in chronology. You can divide your paragraphs by time (such as decades, wars, or other historical events) or by the same structure of the work you are examining (such as a line-by-line explication of a poem).

On a separate sheet of paper, write a paragraph that describes a process you are familiar with and can do well. Assume that your reader is unfamiliar with the procedure. Remember to use the chronological key words, such as first , second , then , and finally .

Order of Importance

Recall from Chapter 8 “The Writing Process: How Do I Begin?” that order of importance is best used for the following purposes:

• Persuading and convincing
• Ranking items by their importance, benefit, or significance
• Illustrating a situation, problem, or solution

Most essays move from the least to the most important point, and the paragraphs are arranged in an effort to build the essay’s strength. Sometimes, however, it is necessary to begin with your most important supporting point, such as in an essay that contains a thesis that is highly debatable. When writing a persuasive essay, it is best to begin with the most important point because it immediately captivates your readers and compels them to continue reading.

For example, if you were supporting your thesis that homework is detrimental to the education of high school students, you would want to present your most convincing argument first, and then move on to the less important points for your case.

Some key transitional words you should use with this method of organization are most importantly , almost as importantly , just as importantly , and finally .

On a separate sheet of paper, write a paragraph that discusses a passion of yours. Your passion could be music, a particular sport, filmmaking, and so on. Your paragraph should be built upon the reasons why you feel so strongly. Briefly discuss your reasons in the order of least to greatest importance.

Spatial Order

As stated in Chapter 8 “The Writing Process: How Do I Begin?”, spatial order is best used for the following purposes:

• Helping readers visualize something as you want them to see it
• Evoking a scene using the senses (sight, touch, taste, smell, and sound)
• Writing a descriptive essay

Spatial order means that you explain or describe objects as they are arranged around you in your space, for example in a bedroom. As the writer, you create a picture for your reader, and their perspective is the viewpoint from which you describe what is around you.

The view must move in an orderly, logical progression, giving the reader clear directional signals to follow from place to place. The key to using this method is to choose a specific starting point and then guide the reader to follow your eye as it moves in an orderly trajectory from your starting point.

Pay attention to the following student’s description of her bedroom and how she guides the reader through the viewing process, foot by foot.

Click Image to Enlarge

The paragraph incorporates two objectives you have learned in this chapter: using an implied topic sentence and applying spatial order. Often in a descriptive essay, the two work together.

The following are possible transition words to include when using spatial order:

• Just to the left or just to the right
• On the left or on the right
• Across from
• A little further down
• To the south, to the east, and so on
• A few yards away
• Turning left or turning right

Key Takeaways

• The way you organize your body paragraphs ensures you and your readers stay focused on and draw connections to, your thesis statement.
• A strong organizational pattern allows you to articulate, analyze, and clarify your thoughts.
• Planning the organizational structure for your essay before you begin to search for supporting evidence helps you conduct more effective and directed research.
• Chronological order is most commonly used in expository writing. It is useful for explaining the history of your subject, for telling a story, or for explaining a process.
• Order of importance is most appropriate in a persuasion paper as well as for essays in which you rank things, people, or events by their significance.
• Spatial order describes things as they are arranged in space and is best for helping readers visualize something as you want them to see it; it creates a dominant impression.
• Successful Writing. Authored by : Anonymous. Provided by : Anonymous. Located at : http://2012books.lardbucket.org/books/successful-writing/ . License : CC BY-NC-SA: Attribution-NonCommercial-ShareAlike

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Essay Paper on Organizational Structure

by George Grant

Organizational structure is one of the breaking factors that may foster or hinder the organization success rate. Project organizational structure was one issue of project management that grabbed attention in the fifties and sixties. Lately among the last two decades various organizational structures have emerged on the picture but still need efficiency and quality. Eventually, project managers look for better organizational techniques to smoothen the progress of execution. They look forward to enhance teamwork tasks, increase flexibility in dealing with resources and how to get the best of them. Managers also look forward to add efficiency and quality to all project aspects to meet their goals. We here will examine three of the major organizational structures for project management. Those structures are mainly named functional, project and matrix organization.  Among each organizational structure the role and power of the project manager varies accordingly (Russell, 2011).

Functional structures are accepted by lots of the conventional manufacturing and industrialized companies. They are somehow hierarchical in arrangement through which each employee is managed by one known boss. (Figure1).

 “Functional Organization structure” is one of the oldest processes yet one of the most successful. This structure achieves in a better way when applied for schedules and regular everyday tasks and meant to keep up quality and work principles and standards. The “Functional Organization structures” allocate plans in 2 unlike ways. One way looks after the project being given to a particular functional manager; coordination takes place to involve all other departments for their contribution. Then again, projects can be trundled around to several divisions where each division manager guarantees that their duties and tasks have been finished. This way is not so efficient when applied to make complex or multifaceted projects easier. One of the most important disadvantages of this organizational structure is the need of integrated employee recognition plus evaluation and compensation for project performance. Similarly employee accountability is very low for all allocated duties carried out through the project (Russell, 2011). Accepted projects by functional organizations are usually of a low profile. And projects more often than not are carried out inside one functional unit e.g. a design project for a signage company is taken on by the engineering division. This project does not require cross-functional collaboration or integration. Also the team working on the project is not allocated on a full-time starting point concept. As well the power and authority of the project manager within this structure is low or almost none existing.

Projectised structures are very exceptional (Figure 2). They are accepted by companies such as architectural organizations, usually the bulk of the staff is occupied in the project tasks. Regularly project is dedicated for an external customer. Project structures are controlled just by project teams where each team is self-sufficient and independent in administration and support meanings. In this kind of structure the Project Manager has more power and authority than the functional style and also has more independence in achieving the tasks. This project structure is practicable and reasonable for very small companies; the overhead of extra staff and support is unaffordable. The staff members working together within a team report to one specific boss and finally this boss reports to the project manager where the project manager is holds the highest power in the configuration.

In this projectised structure, everybody is allocated to a project. After finishing the project, resources are allocated to another project. The Project Organization structure is purposely considered for implementing projects. It is specially adapted to fit for the needs and requirements of complex projects by separating exclusive work and preserving a strapping focus on finishing the project. Once the project is finished, this structure breaks up. It is effectual in sustaining fanatical resources throughout the existence of the project. The main disadvantage of the projectised structure is that it is ineffective in reassigning resources and technology. Also, by the time the staff in point of fact starts performing as a unified team, when the project is ended it’s hard as the organization breaks up. As this project has fanatical resources throughout its time, ineffectiveness and disorganization may result as there could be underutilized employees at some stages of the project (Russell, 2011).

Matrix Organization (Figure 3) is a structure for project management that came up from the acknowledgment of intrinsic faults and errors in both the “Functional Organization” and “Project Organization” structures. It shared the best mechanisms of the two structures. It operates greatly when several projects are synchronized at the same time. The functional managers supervise and monitor staff, training, job duties and assessment of the project’s employees. The functional individuals are allocated one or more projects and ensure that projects are meeting their goals through high levels of performance. The “matrix organizational structure” (Figure 3) is in the middle of functional and projectised. The team working for the project is consisted of staff employees selected from several functional divisions that could be marketing, sales or other divisions. The team staff in this structure should report to both the functional manager and the project manager. A lot of global organizations approve the matrix form with tasks jointed between either the product or th services departments and geographical division. The “global matrix organization” was created to maintain equilibrium by merging global effectiveness including infrastructure, and strategies with local receptiveness and awareness. Project Managers play a significant role in running the clashes and strains between different departments and state executives, for better interaction between global effectiveness and local receptiveness. Among this strong matrix structures, Project managers are powerful and hold up decisions for the whole project. There are different forms of matrix organizations; strong, weak and balanced. For the strong matrix, power is seized to the Project Manager and is more close to the Projectised structure. Among the weak matrix, Power is seized to the Functional Manager and is more close to Functional structure. Concerning the balanced matrix model, the power is communal and it’s a mix of the Functional and the Projectised. The Project Manager and the Functional Manager manage the resources and later after the project is finished the resources are returned back to the functional division. Nowadays projects are often taken on under the matrix structure. Accordingly, organizations are more and more altering their shapes into “strong matrix organizations”. The huge bulk of bulky projects are performed within “matrix structures” today. Approximately all global services organizations approve this structure. The work could be carried out transversely among several geographies, yet the client may exist in other geography.  In spite of avoiding the flaws existing in other structures, Matrix Organization still enclose some troubles. One of which is that employees report and refer to at least two managers, which may over and over lead to vagueness and divergence. These troubles could be avoided with advanced communication and firm leadership for better understanding and control (Russell, 2011).

This clarification on the whole presented a general idea of some “project management organizational structures”.  The three styles “Functional Organization, Project Organization and Matrix Organization” are considered to be the most conventional project management structures that are commonly used because of their efficiency and usefulness. Moreover, there are a lot of other techniques accessible that may better fit in different situations. However, the sort of organizational structure that is supposed to be preferred by any corporation depends on the nature of the project and goals to be accomplished.

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