Types of the organizations structure
- 1. TYPES OF THE ORGANIZATIONS STRUCTURE Majed Badghesh
- 2. ORGANIZATIONS STRUCTURE There is 8 types of the Organizations Structure Functional Structure Divisional/Product Structure Divisional/Process Structure Divisional/Customer structure Divisional/Regional Structure Matrix Structure Network Structure Cluster Structure
- 3. ORGANIZATIONS STRUCTURE Functional Structure Functional structures are effective when: o There are stable and undifferentiated markets with well understood customer requirements o There is a successful, control-focused enterprise culture o There is a small, single product line o There is scale or expertise within each function o There are long product development and life cycles CEO Sales Manufacturing Research & Development Accounting & Finances
- 4. ORGANIZATIONS STRUCTURE Divisional/Product Structure o A divisional/product structure is the most appropriate in a business where there are low synergies between the buyers and the distribution channels of the different divisions. Typically, in this structure each division o Runs as an independent business unit. o Stakeholders perceive low synergies between products o There are different purchasing process/distribution channels o There are different operating requirements for success o There is a different competitive environment CEO Divisional Product X R&D Manufacturing Sales Divisional Product Y R&D Manufacturing Sales Divisional Product Z R&D Manufacturing Sales
- 5. ORGANIZATIONS STRUCTURE Divisional/process structure In this structure is the focus is on processes where core services such as customer and distribution services are frequently organized across the enterprise. Internal support services are frequently organized in this way but customer-facing services are equally well served by this structure, which is a good alternative to the functional structure. Process- focused structures work well when: There are well-defined processes serving different customers (internal/external) There is potential for new processes and/or radical change to processes CEO Purchasing ordering Order fulfillment
- 6. ORGANIZATIONS STRUCTURE Divisional/Customer structure Structures around customer segments are successful where here are obvious customer segments defined by need, economics, distribution, and other key attributes. Divisional/customer structure are effective: Where well-defined customer segments have been identified When selling products/services unique to segments When using buyer strength When leveraging customer knowledge advantage When requiring rapid customer service and product cycles When perceiving minimum efficiencies of scale in functions or out sourcing When promoting a strong marketing /customer- focused culture CEO Government contract VIP Customer contract
- 7. ORGANIZATIONS STRUCTURE Divisional/Regional CEO Region 1 Marketing Operations Finance Region 2 Marketing Operations Finance Region 3 Marketing Operations Finance Some companies use a regional or geographical organizational structure, preferring to duplicate various departments or functional areas across regions. preferring to duplicate various departments or functional areas across regions. For example, a small consumer products company may employ marketing managers in the east, central, west and southern regions of the country. This model works best when a company needs to focus on more localized strategies. Competition may be unique in each region. Additionally, customer demands may vary, with people in various regions preferring different flavors or features.
- 8. ORGANIZATIONS STRUCTURE Matrix Structure Matric Structures typically operate in two dimensions (for example, function and product) and are usually one of three types: functional matrix, balanced matrix or project matrix Core work is project-based or the work requires small groups of people Projects require highly specialized skills and knowledge; Project skill requirements vary greatly Labor cost is a prime economic driver
- 9. ORGANIZATIONS STRUCTURE Network Structure Network structures are valuable for fast- moving organizations that are highly innovative and operating in an environment that requires speed, flexibility and high levels of customer focus. In network enterprises, work is organized around team and unit delivery to the customer is seamless Core Company Engineering Company Manufacturing Company Distributer Product Design Company Marketing and Promotion Company
- 10. ORGANIZATIONS STRUCTURE Cluster structure The cluster model provides another example of an organizational style idea for conditions requiring flexibility, innovation and change. It is a subcontracting model where, as Gareth Morgan says in his book, Imaginization: New Mindsets for Seeing, Organizing, and Managing, “the team at the center steers the whole enterprise”. The subcontractors are the clusters around the central point. Cluster Local government Units Companies Scientific Units Business Environmental Institute Scientific Research Institute