Organizational Structure Essay Example


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Organizational Structure Essay Example

Organizational Structure Essay: Introduction

This paper analyzes types of organizational design, functional and divisional structures, and matrix organizational structures. It also includes my test outcomes. The vertical and horizontal approaches are also defined in this study. It is evident throughout the article that by applying the proper structures, an organization can become more successful in business management.

Types of Organizational Designs

Corporate systems have developed from static, straight, bureaucratic, autocratic regimes to fairly open, capacitated, and linked companies built to fulfill consumer demands with personalized goods and services quickly. Organizations are usually vertically and horizontally or openly structured today (Kuprenas, 2003). Within both of these groups, different systems include vertical — functional and divisional, and horizontal and vertical — matrix.

Functional and Divisional Structures

There are two significant kinds of functional and divisional vertical structure. The functional structure is specialized in dividing work and employees. It is a structure that its hierarchy usually vertical. It underlines organizational standardization and processes in related narrow jobs for specialist employees. The typical form of the enterprise includes manufacturing, procurement, research and development, finance, financial management, and marketing divisions. Each department is specialized in that area and has a separate function (McPhee & Poole, 2001). For example, all human resources practitioners play the same position and report to a senior manager in human resources. For other functions such as finance and operations, the same reporting process would apply. The divisional structure might look like the figure below.

Figure 1. Divisional Structure (McPhee & Poole, 2001)

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This type of structure has the following advantages: it focuses more on each division's core competences and offers more flexibility. It allows businesses to focus on the production and use of expertise from related divisions (McPhee & Poole, 2001). It enables coordination rather than the functional structure. The authority to take decisions pushed down into the organization's lower levels enables quicker, customized decisions.

This structure has the following disadvantages: It can result in loss of efficiency and duplication of effort since every division must gain the same resources. Often each division has its research, development, marketing, and other units that otherwise could be mutually beneficial. The interaction of employees with a similar career path has been reduced. For the same customers, divisions can compete (McPhee & Poole, 2001). Often in smaller amounts, each division buys a similar supply and could pay more for it per item.

Matrix Organizational Structures

The structure of a matrix combines functional and divisional structures to create dual control. An employee reports with a matrix structure to both managers who are jointly responsible for the performance of the employee (Kuprenas, 2003). Typically, one manager works for the administration of a product, service, customer, or geographical sectors, such as financing, IT, sales or marketing, and the other works for a business unit.

Test Results. I believe my knowledge was increased. There was some detailed information on the test, which increased my awareness. The pre-test assisted me in knowing the importance of organizational structures for health care leaders. The questions made me look at organizational structures from a different point of view. The other benefits I obtained from taking the test include details of the main concepts, different perspectives, and remembering already known ideas.

Organizational Structure Essay: Conclusion

This paper analyzed the organizational architecture, the functional and divisional systems, and the functions of the matrix. It also covered my pre-test results. In this study, the vertical and horizontal approaches are also identified. It is evident in the whole article that a company can be best suited to market administration by implementing the correct systems.


McPhee, R. D., & Poole, M. S. (2001). Organizational structures and configurations. The new handbook of organizational communication: Advances in theory, research, and methods, 503-543.

Kuprenas, J. A. (2003). Implementation and performance of a matrix organization structure. International Journal of Project Management, 21(1), 51-62.

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