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Organizational structure defines the lines of authority, supervisory relationships, grouping of employees, and operational work flow of a company. A number of vital factors of success, including workplace culture and operational efficiency, are directly influenced by organizational structure. An effective and well-designed structure is important to the success of any business.
Every company has suppliers (inputs) and customers (outputs). Every company is dependent on both their suppliers and their customers for resources and money. To the extent that a company needs it’s suppliers less than they need it, the company has power. That is, power is a function of asymmetric mutual dependence. Dependence is itself a function of the availability of alternative supply. A depends on B to the extent that there are few alternatives to B that are available to A. Dependence is also a function of how much A needs what B has got.
In my organization functions are fairly divides. A department manager with his team, is responsible for heading each function. Our is a mix of hierarchical and transnational structure.
The different types of organizational structures are:
Straight line structure: This is the most basic type of organizational structure in which there is one senior and several junior employees.
Functional Structure: Functional structure was firstly applied in Foreman system. After that, its applicable range was expanded, made it more suitable for the increasing amount of management work.
Straight line structure: In this structure, the firm leader is helped by the functional managers in making decision, conducting and checking the implement of the decision.
Matrix structure: The particular characteristic of this structure is that apart from functional managers and functional departments, there are project or product managers. They coordinate with the others to accomplish the company’s project.
I believe it depends on organization’s internal policies and external market environment, on the choice of structure. For example, matrix structure is more suitable for a global company like Wal-Mart, whereas hierarchical structure is more applicable for a traditional company.
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