A comparison of the similarities and differences between organizational structures

The matrix structure is a hybrid of the functional and divisional structure, effectively creating independent business units for each product or service created or each unique market targeted. These independent departments have their own functions to perform and objectives to pursue.

Because of this the coordination and speed of communication between employees is improved greatly.

For instance, there are autonomous departments for marketing, production, purchase, human resource, research and development, etc. Appropriate for Large and dynamic organizations. There are potentially a nearly infinite number of other organizational structures, but in one way or another, they're all businesses and other organizations incorporating some mix of hierarchical and associative organization that provides a necessary minimum of central control while attempting to allow managers and specialists as much freedom to innovate as possible.

There are large numbers of firms and behaviour of each firm has less impact on activities of other firms. Some organizations have one or more vice presidents who report to the CEO. Flat organizations provide greater need satisfaction for employees and greater levels of self-actualization.

Innovative leaders like General Joseph Stilwell, who knew China better than anyone else high up in World War II's Pacific Command and who recognized early on that Chiang Kai-shek was a weak and corrupt leader Stilwell much preferred Maoare often treated as insurrectionist and rebellious and leave the organization voluntarily or are fired, depriving the organizations of its most talented potential leaders.

Simple A simple organizational structure has a hierarchy that consists of a top executive who delegates authority down the organizational ladder.

For instance, there are autonomous departments for marketing, production, purchase, human resource, research and development, etc. Sometimes hotchpotch is created due to excess workload, which results in hasty decisions.

Therefore, organizations should be compared to other organizations of similar size and specialization to determine how much hierarchical or flat is their structure. Therefore, the junior staff is only to follow the commands of the top managers and function accordingly; they are not allowed to take an active part in the decision-making purposes.

For example, each division could require its own warehousing facilities or shipping contracts. Structure and Size of Organization The structure used is also dependent on the size of the organization.

The manager would be an expert in the respective field, and he will be held responsible for the performance of his department. You have to make sure your organizational structure suits the type of business you are in and matches the requirements of your market environment.

On the other hand, full fledge decentralization is an indicator of no control over the activities of subordinates.

Two common types of organizational structures are functional and divisional structures. Therefore, it is a bit difficult to say, that which one is better than the other in a particular condition, but on the basis of their suitability, it can be concluded that which one is good for a particular organisation.

Hence managerial development is easier. At present, most of the organisation are equipped wth both the features, as absolute centralization or decentralization is not possible.

Photo Credits smart management image by araraadt from Fotolia. What are the advantages of forming an LLC vs S Corp. Or, what are the disadvantages of incorporating vs LLC? Compare incorporation, sole proprietorships.

The main difference between functional and divisional structure is that in functional organization is described as an organizational structure wherein, the employees are classified on the basis of their area of specialization.

An organizational structure, so designed that it is bifurcated into semi-autonomous divisions on the basis of product, service, market etc, is known as divisional structure.

Compare And Contrast Different Organisational Structures And Cultures.

Print Reference this. between structure and technology – the technological imperative – is vital to maintain competitive advantage in modern business. Organizational Culture, 2 nd Edition, Harlow: Pearson Education Ltd. Burnes, B. (). In a comparison/contrast essay, a writer must do the following: 1) Identify and explain three or more key points that two or more subjects have in common.

2) Show the. The organizational structure of your company influences its operations. Depending on how you organize your business, you can have centralized control or delegated authority.

Some structures promote team cohesiveness, while others depend on individual initiatives. Business Structures Comparison Chart SOLE PROPRIETORSHIP: GENERAL PARTNERSHIP: Advantages: • Minimum legal restrictions • Ease of formation • Organizational complexity • Expense activities limited by charter • Extensive regulation, record-keeping.

A comparison of the similarities and differences between organizational structures