Essay on Contemporary Business

Submitted By AmandeepGrewal92
Words: 899
Pages: 4

1) What are the four basic organizational structures? Which one is evident at Irving and explain why using an example?
Ans: - An organizational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. An organization can be structured in many different ways, depending on their objectives1.
Types of Basic Organizational structure: There are various types of organization structure. The four main basic organization structures are as following:-
Simple Structure: This is first organizational structure used in companies at the beginning level In this there is only one hierarchy level. Thousands of organizations are arranged according to simple structure at the earlier stages and entrepreneurial stages when the organization is inclined to reveal the personality goals and desires of the owner or the president. In simple structure only one person is responsible for defining and changes in rules, responsibilities and duties for a business2. For example a convenient store or mini mart, where one person is responsible for all the top level tasks to assign the task and duties to someone etc.

Simple Structure (only one hierarchy level)

Functional Structure: This is second organization structure. This is very common structure and can be found in organization or business firm for profit, non-profit, growth and enhancement of the business around the world. In this structure we put people with similar work specialities and experience together to enhance the business more efficiently and quickly2. For example A website development company will group people with similar work skills or experiences in different departments such as Marketing Department, others in a Designing Department, Development department others in Finance, and so on.

Structure of a Web Development Company

Divisional Structure: This is third organizational structure. In this type of structure people with different work specialities and experiences are put together in group by similar customer or clients, by similar products or services or geographic regions. These groups are commonly self-managed and focused upon the aspect of the company's products or services. Divisional structure have both strength and weaknesses2.
For example: Future Shop is a large store who sells every type of electronic & daily life products. These products have same common feature of electricity usage .But they all are divided into different categories such as Appliances, Movies & Music, TV & Home Theatre, Laptops & Tablets and Home Tools & Garden etc. Also Future Shop almost have similar clients or customers.

Divisional Structure of Future Shop

Matrix Structure: This is fourth organizational structure. This structure is combination of functional and divisional structure. In this structure, an organization combines both functional and divisional which makes a grid and which further creates two command structures as vertical and horizontal structure. The functional structure of the organization doesn’t changes by combination but the divisional structure may vary by any of these factors such as product, brand and geographic region2.
For example Adidas Cloth manufacturing company: The functional structure of this company might be the departments of manufacturing, Finance, trading, and marketing, each department is managed by a vice president. Thus, the arrangement is vertical. The divisional structure of this company might be by product (the new styles of t-shirt, jeans, jacket, and trouser, for example), each managed by a project manager. This reporting