17 Facts About Organizational structure

An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims.

Organizational structure affects organizational action and provides the foundation on which standard operating procedures and routines rest.

Organizational structure can be considered as the viewing glass or perspective through which individuals see their organization and its environment.

Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup, and individual.

Organizational structure charts exist for every department, and everyone understands who is in charge and what their responsibilities are for every situation.

Functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation.

The organizational structure determines how the organization performs or operates.

Coordination and specialization of tasks are centralized in a functional Organizational structure, which makes producing a limited number of products or services efficient and predictable.

Advantage of divisional Organizational structure is that it uses delegated authority so the performance can be directly measured with each group.

When divisional Organizational structure is utilized more specialization can occur within the groups.

When divisional Organizational structure is organized by product, the customer has their own advantages especially when only a few services or products are offered which differ greatly.

Disadvantages of the divisional Organizational structure is that it can support unhealthy rivalries among divisions.

An additional disadvantage of the matrix Organizational structure is higher manager to worker ratio that results in conflicting loyalties of employees.

However, the matrix Organizational structure has significant advantages that make it valuable for companies to use.

The failure of this Organizational structure became the main reason for the company restructuring into a matrix.

Such Organizational structure is usually found in organizations with environment that is simple, but changing.

Also, such Organizational structure is common for organizations that perform work that is related to some sort of control, or organizations with special safety requirements.