Organizational Design Is Far More Than Creating A Diagrammatic Structure
Although we now understand that organisational design is far more than simply creating a diagrammatic structure, it is in this way that we most easily recognise the outcomes of design. These types of organisation structures should not be seen as sequential, but as a range of alternatives which are the subject of deliberate management choice because organisations are set up in specific ways to accomplish different goals therefore the structure of an organisation can help or hinder a business objectives.
Functional organisations – This type of structure reflects the different functions present within an organisation. For example, marketing, finance, sales, production, research and human resource specialties each have their own sub organisation which is represented at the board level. The size of each department varies according to business needs and the general point is that such a structure allows employees with specialist skills to deploy these to their best abilities.
Geographical Organisations – As organisations expand particularly when they develop their operations across national boundaries it is common to observe an organisation structure which reflects this so to be able to tailor a product or service to a regional market, geographical organisation structures would work best at a local decision – making.
Organisation by product – Product based organisations work best when there a need to promote entrepreneurial behaviour. Each of the business areas pursues the…