Organizational Structure Analysis
Eric Pichardo
MGT/230
3/30/2015
Steve Smith
Organizational Structure Analysis
There are three different organizational structures that a business can use. There is Functional Structure, which has each portion of the organization grouped according to purpose. There is Divisional Structure, which divides the organization by geographic area or types of product or market. There is also Matrix Structure, which uses both functional and product departments but also has workers from these departments reporting to a project manager. In this paper the discussion will be focused on the pros and cons of the three major horizontal structure types.
Functional Structure
The Functional Structure has a single manager to oversee the work being done. This type also allows for many workers in the same field to collaborate and become very cohesive as a team where advancement is there for everyone. It also it saves the bottom line, and that is cost. Employee performance is better maintained, the line of communication is more precise and clearly elaborated. The downside to a Functional Structure is twofold. One problem is that different departments can argue over what falls under their umbrella of responsibilities. Another problem is that larger companies will have larger employee groups, which makes managing them become more difficult and then there is the employee caring more about the revenue than the customer or the product. Managers learn through trial and error but do not inherit the skills required to operate the organization. The cons
Divisional Structure
The advantage of the Divisional Organizations is that less information is required and employees receive broader training. All task responsibilities tend to be clearer with the Divisional Organization. Another pro is the overall support web it creates for the company’s major objective. It also allows workers to concentrate on a single task or product, creating expertise among those employees. The disadvantages of the divisional structure are the opposite of functional structure. Managers develop certain skills that would not be operational in a function
