Description

Organizational Structure

Organizational structure means a system that describes how critical business activities are directed to attain the key goals of the business organization. These major activities consist of roles, rules, and responsibilities. Therefore, it also defines how information flows among different levels in the company. Hence, it is a visual diagram of the entire business organization that outlines what personnel does, whom they report to, and how creative decisions are made throughout the organization. Following are the three major kinds of organizational structures that help the company to improve its growth and productivity. These are:

(a)

Functional Organization Structure

In this organization structure, employees who do the same tasks are grouped collectively depend on their key specialty. Such as all the major accountants are grouped in the finance department, marketers are grouped into the marketing department, and the HR manager is a group in the human resource department. However, it is a structure commonly used to organize the key employees of the organization effectively. By grouping them in their specialty field, the employee may complete their huge tasks efficiently. The key benefits of this type of organizational structure involve effective decision making, as the team members may communicate easily with one another (Awa, 2016, pp. 1-4).

For example, GiffGaff is an essential telecommunication company in the UK. It has an effective functional organizational structure. It has several directors for marketing, technology, supply chain, human resources, and customer care. Each of these major directors effectively controls their entire departments and is responsible for what their functional organizational department is accountable for. The figure below explains the functional organizational structure of Gifgaff, who uses key functional structures. The top of the organizational structure has the board of directors, then there generally is a CEO and then arises the functional separations like marketing, sales, production, human resources, and finance. All of these divisions have a team or manager who attains their set goals through functioning together.         

Figure 1.Functional Organizational Structure of Gifgaff (Awa, 2016).

Divisional Organizational Structure

It refers to the structure in which the division of organization is on the grounds of products or regions. Hence, regional, divisional organizational structure followed through PepsiCo is other one of the effective organizational structure best examples. Therefore, the major regional PepsiCo divisions involve America, Quaker Foods North Asia and America, Europe Sub-Saharan Africa, and Middle North and East Africa. There are various key benefits of the regional, divisional organizational structure. The performance of every division’s assessment may be done differently, and their effective business performance may make creative decisions.