Describe the three multi-divisional structures. Draw their organizational charts. What will be an...


Describe the three multi-divisional structures.

Draw their organizational charts.

What will be an ideal response?

Organizational Structure:

An organizational structure outlines how operations are assigned, coordinated, and overseen in attaining its objectives. The management structure furnishes the basis upon which operating procedures and practices are constructed.

Answer and Explanation:

The three multi-divisional structures are:

1. Hierarchical organizational structure: Centralized organization structures are characteristic of larger firms and organizations. It relies on how the line of command links the company's management levels, which may be at different levels of authority. Formal decision-making often happens from top to bottom. A company's hierarchical structure refers to the leadership chain that usually runs from top executives and management to regular personnel. This structure is appropriate in companies with only one leader and a continuous line of followers responding to them. Employees can more easily identify a corporation's many chains of authority if it is pyramidal because it enables people to see how they might progress through time inside the organization.

2. Matrix organizational structure: Two or more distinct organizational structures are being combined in this structure. It is a method of setting up the company, so communication linkages are put up as a matrix or array instead of a degree of formality. The matrix structure means that two types of managers are involved, functional and project managers, who are somehow flexible. Roles in the matrix form of management are flexible, not static. Organizationally, the power dynamics between functional and project managers are not clearly defined. The matrix organizational structure aims to accomplish the primary objectives of effective project realization and resource utilization at the expense of increased organizational outcomes.

3. Flat organizational structure: In this organizational structure, there are very few levels of intermediaries who come in between the higher officials and the employees. It uplifts the employees' roles and responsibilities where the involvement of the creamy layers of the management is reduced and leads to proper channels of communication and harmonious relations. As a result, the decision-making capabilities also increase among co-workers. The organization shows the workers' efficiency by ensuring coordination with top management and the employees. Here, leadership is not focused on one person only. This kind of organizational structure is mainly applied to a new start-up business. Employees try to expertise their skills in how they contribute to the organization.

Ideal responses concerning organizational structure:

1. Build the dream framework: The first step of creating the top organizational structure is building up the desired framework so the organization can run smoothly.

2. Order things by functionality: To ensure the proper functioning of the organization's structure, one needs to understand the organization's functions.

3. Make the design clear: Make sure that the objectives for setting up the structure are clear.

4. Establish a command structure: The greatest way to ensure that organizational structure functions are for every team member, even the lowest in the chain of command, is to be aware of who is responsible for what and any disciplinary procedures.

5. Combining different roles and responsibilities: Build cross-functional teams. Bring employees together that have expertise in different functions within the company. By doing so the level of creativity, problem solution and strategic ability will increase.

Learn more about this topic:

Work Specialization in Organizations


Chapter 5 / Lesson 1

Sometimes, to increase efficiency and productivity, managers need to divide labor among employees, breaking a single complex task down into multiple simple tasks. Explore the advantages and disadvantages of work specialization in organizations.

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