Description of a Company Organization
Organizational structures are created to support a central idea or goal and support everyone involved in completing their jobs regarding that central idea.An organizational structure provides a framework for the chains of authority within the company,which are diagrammatically charted as common.An organizational chart also clarifies the areas of responsibility assigned to specific departments and directors,as well illustrating how the official chains of command work within it.A well-conceived organizational chart can assist in shaping the direction of the organization at the same time that it serves as a visual representation of how departments and people relate to one another within the company.
Although there are many ideas about the perfect organizational structure,one stands out for its centuries of use.The hierarchical organization structure is a traditional organizational system,recognizable when put into atop-down diagrammatic form.A hierarchical organization is a group of entities structured to be subordinate to a central idea,person or group of persons.The person or department in charge sits at the top of the pyramid.Each department sits below the top in descending order of subordination.The flat bottom of the pyramid is filled with the bulk of the population of the organization.Organizational charts （diagrams)can be drawn to reflect these structures.
Daily communication typically occurs between an immediate superior and his subordinates.The immediate supervisor is directly responsible for the results delivered by her subordinates.Initiatives,or directives that involve the organization as a whole,are delivered from the top of the organization downward.The directives are sent specifically to the superior of each department listed in the organizational chart.This departmental superior delivers the initiative to his subordinates.
3.1 Divisional Structure
The divisional structure is separated by nearly independent departments along the lines of product,market or geographic locations.The larger the organization,the more likely it has a divisional structure,which is simpler to manage and gives clearer lines of control.A company might have separate divisions for each product, each market area the company sells in or each geographic location where operations reside.
3.2 Multi-divisional Structure
Multi-divisional forms mean that there is one parent company,and that parent company owns smaller companies that use its brand and name.The whole organization is ultimately controlled by central management,but most decisions are left to autonomous divisions.Generally,a parent company will own all of the smaller companies and the smaller companies will provide one service.The multi-divisional form（M-form)is a particular organizational structure in which a firm is divided into semi-autonomous divisions that have their own unitary structures.
The firm is essentially divided into sub-firms,with each sub-firm being responsible for its own production and maximizing its own profit.However,the M-form still has a central office that overlooks the other divisions but the central office's main responsibility is to develop overall strategies for the business,not to be responsible for each division's operations.Thus,the M-form proved to be the best strategy for large firms that wished to expand their diversification and appeal to a wider consumer base.One example of an“M-Form”organization in the automobile industry is General Motors.
3.3 Matrix Structure
It is a type of organizational management in which people with similar skills are pooled for work assignments,resulting in more than one manager（sometimes referred to as solid line and dotted line reports,in reference to traditional business organization charts).For example,all engineers may be in one engineering department and report to an engineering manager,but these same engineers may be assigned to different projects and report to a different engineering manager or a project manager while working on that project.Therefore,each engineer may have to work under several managers to get his or her job done.
Matrix organizational structures represent a cross-disciplinary approach intended to generate a collaborative effort by personnel from different areas of the company.A matrix organizational structure creates project-focused teams with many members taking direction from one or more individuals who do not usually function as their immediate superiors within the company.Many large building projects within a company,for instance,building aircraft,are carried out with a matrix organizational structure.
3.4 Other Structures
Other structures include network and virtual structures.A network structure links together multiple organizations to work on one or more complex projects.A joint venture between two or more companies bidding on a large military procurement system would be an example of a network structure.A virtual structure holds together far-flung operating units of global organizations.Managers and employees often work in different time zones,and the entire reporting-and-control mechanism might be through Internet-based tools such as instant messaging,webbased training and virtual meeting rooms.
3.5 The Difference between Matrix and Divisional Structures
Divisional and matrix structures each have their own distinct advantages and disadvantages in managing employees.Structures help a person understand how a business is designed and how it operates.The reporting structures within a business are impacted by the differences between a matrix structure and a divisional structure.A matrix structure is organized around product and function,while a divisional structure focuses on product,market and geographic location.The structure of the organization has an impact on how information,resources and operations are conducted.Knowing the differences between these two structures helps a person understand how employee efforts are managed within an organization.
The divisional structure allows for more control,as each employee reports only to the structure in which he's located.An example might be a human resources department that works in and reports to the China office.In a matrix structure,the employee may report to two different authorities,which allows for more utilization but a more complex operation—for example,a sales employee may report to the manager of product A,as well as the sales manager.