A comparison of the similarities and differences between organizational structures

The following are the advantages of the hierarchical organization structure. While a singular control point increases consistency, the managerial workload can be overwhelming and increases stress.

The functional structure is described as an organisational structure wherein; the employees are classified on the basis of their area of specialisation. It gives the employees more autonomy in the organization. This makes 24 separate ranks, each responsible for carrying out orders from above and with authority to give orders to those below.

The Comparison between Different Market Structures | Microeconomics

References Reference for Business: In the functional structure, it is really difficult to fix responsibility, i. He has more than 15 years of experience in marketing, public relations and customer relationship management; over eight years of experience as an academic writer; and as an online journalist for two years.

There is a commander-in-chief at the top and enlisted personnel at the bottom. Key Differences Between Functional and Divisional Structure The difference between functional and divisional structure can be drawn clearly on the following grounds: The divisional structure is most effective for large corporations that have indeed multiple products that are poorly interrelated.

Functional Vs Divisional Structure

While divisional structures are good for nurturing top level managers, they are bad for technical specialists. The larger the organization, the more likely it has a divisional structure, which is simpler to manage and gives clearer lines of control.

Unlike, the divisional organisational structure wherein there is the repetition of resources, and so it is costly. There are two types of organizational structures which are usually adapted by the organizations. It is easier to comprehend the dynamics of a product and therefore is best suited for nurturing general managers in an organization.

High quality products generally need more instances of management review. In centralization due to the concentration of powers in the hands of a single person, the decision takes time. On the other hand, divisional structure, the specialisation depends on product lines. The responsibility of successfully integrating the organization lies with few top level executives, at the same time, the organizational structure limits the capabilities of the functional managers to occupy top management positions.

The structure can be inefficient: You have to make sure your organizational structure suits the type of business you are in and matches the requirements of your market environment. Suppose an organisation produces and sells four products, A, B, C, D.

Product Divisional Structure In a divisional structure, the teams are organized in set of divisions, where each division corresponds to the end product or services provided by the organization. Structuring along the product lines provides clear correlation between the expense and profit of the individual divisions.

Some structures promote team cohesiveness, while others depend on individual initiatives. An organisational structure so designed that it is bifurcated into semi-autonomous divisions on the basis of product, service, market, etc. The functional structure is described as an organisational structure wherein; the employees are classified on the basis of their area of specialisation.

Main Body Differences between a mechanistic organization and an organic organization structure. Mechanistic organization. Hierarchical, bureaucratic, organizational- structure characterized by (1) centralization of authority, (2) formalization of procedures and.

The key difference between matrix structure and functional structure is that matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions whereas functional structure is a structure that divides the organization based on specialized functional areas such as production.

Compare between different market structures market structure In economics, market structure is the number of firms producing identical products which are homogeneous.

Different organizations require different structures. This lesson describes the differences between mechanistic and organic organizational structures by looking at the specifics of organizations.

What this handout is about. This handout will help you first to determine whether a particular assignment is asking for comparison/contrast and then to generate a list of similarities and differences, decide which similarities and differences to focus on, and organize your paper so that it will be clear and effective.

Analytical Comparison of Flat and Vertical Organizational Structures Dr.

Functional vs. Divisional Organizational Structure

Rishipal, Professor and Head, AIBAS, Amity University, Gurgaon, Haryana, India Abstract The emerging organizational paradigm involves complementary changes in multiple dimensions.


A comparison of the similarities and differences between organizational structures
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