organizational structure

organizational structure meaning

Organizational structure means doing each job in sequence. This structure is followed by every organization because this structure make their work easy to do.

In this type of structure people who is employer and who is employee and what is their authority (Power) and responsibility to do their job perfectly. For example- manager and his assistance, here, in this example- manager would have more authority and responsibility than assistance. manager know assistance is his employee and assistance know manager is his employer that’s why assistance would share all his issues and problems with manager instead of other higher post people.

types of organizational structure in management

1) Functional organization structure- As name guiding us functional structure is a type of structure that made in organizations on the basis of its functional departments.

Functional structure is suitable for small scale organizations and those organizations which deal in only one and few products. For example- The functional departments of a company manufacturing only soap is purchase department, manufacturing department, finance department, accounts department and so on.

There will be only one department for the same job function in the organization. For example- In functional organization structure, All work related to accounts will be done in Accounts Department only, work related to finance management will be done in Finance Department.

2) Divisional organization structure- In divisional organization structure, there will be different group of departments for different products. We can say that functional organization structure is a part of divisional organization structure as this structure hold different departments for same function. For example- there will be more than one finance department and same like this all department will be in multiple number.

This type of structure is best suitable for big organizations who manage and manufacture multiple different products. For example- A company manufactures 5 different type products. Now each product department needs to be managed separately to properly manage all the functions of all product company. In this case, company made separate departments for all products like product A will have its separate accounts department and product B will have its separate accounts department and same like this all product will have their separate departments.

3) Matrix organization structure-

We can say that the matrix structure is the combination of two different structures which we have discussed above. Whenever a new project is started in an organization, instead of hiring new people, the organization appoints old people to do the work of new project. We can say that the organization transfers the old ones to the new project according to their experience.

Let us briefly understand the matrix structure through a diagram:

Diagram of Matrix Structure

If we see in the diagram there is a general manager who is the head of all the managers in the organization and also under him there are many managers under whom many different groups are working. If we see this diagram through vertically ( vertically means production manager- production group- production group- production group) then we can clearly see that the division of work is happening on the basis of functions of organization that’s why vertical side of diagram is based on functional structure.

If we see the diagram horizontally (horizontally means Project A Manager- production group- finance group- marketing group- personal group) then we can clearly see that the division of work is happening on the basis of projects and every project has its own separate departments that’s why horizontal side of diagram is based on project structure.

In matrix structure, there will always be two owners in a group with similar work and the group will be accountable to both of its owners i.e. they have to update their work related information to both of their owners. For example- If we see in the given diagram, the production group of project A will be accountable to Product A manager and also to the production manager. Similarly, Project A’s finance group will also be accountable to the Product A manager and the finance.

benefits of organizational structure

  1. Properly organizes all the daily workings of the organization
  2. ensures better flow of communication between superior and sub-ordinate
  3. Work will be more efficient and effective
  4. Easy to get feedback about work and employees
  5. Allows correlation and coordination among human, physical, and financial resources in the organization.
  6. Shows clear idea about the working style of enterprise to it’s investor, customer, and workers.

Types of planning

planning definition

Planning means path and blueprint of a project that organization want to achieve. During the time of planning, organization try to predict all pros and cons that they can face in the journey to achieve their goal.

types of planning

1) Strategic Planning- Strategic planning is done by top level management for long range and broad goals. For example- Creating software where customers can write to the company about their problems with the product.

2) Tactical planning- Tactical planning is made by middle level management to achieve short range of objectives. For example- Enhancing product quality.


3) Operational planning- Operational planning refers to type of plans that is related to daily work in the organization. for example- how work will be done in organization.

4) Contingency planning- Contingency planning refers to the plans that are made by the organization as back up plans. For example- If the plan A of the organization is not working well, they will adopt the plan B which they have made earlier with plan A as a back up plan.

importance of planning in management

Planning plays a very important role in the success of any goal of the organization because planning acts as a guide for all the employees of the organization as to what they have to do, how they will do it and what will be the right way to do the work.

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