Sharing of burden and responsibility Power of decision making Lies with the top management. Multiple persons have the power of decision making. In this type of organization, all the important rights and powers are in the hands of the top level management.
Divisional Organizational Structure by Elina VanNatta - Updated September 26, Organizational structure defines who is responsible for decision-making, establishes how various tasks and responsibilities are grouped, and outlines the roles of people and departments within the organization.
Two common types of organizational structures are functional and divisional structures.
Definitions Functional organizational structure consists of an executive officer and his staff, along with functional managers and their respective departments, such as: In a divisional organizational structure, various departments are grouped in order to produce a given product or service.
There are three types of divisional structures: Strengths Functional structure works best for organizations that only produce a few products. One of its main advantages is that employees within functional departments are highly specialized and thus are very skilled and knowledgeable.
The main strength of the divisional structure is that it is very adaptable to fast changes and to differences between products, geographic locations or customers. Also, it involves collaboration between various functions, which leads to innovation.
Video of the Day Brought to you by Techwalla Brought to you by Techwalla Weaknesses There are two main weaknesses in the functional organizational structure: Among other weaknesses is the lack of coordination between departments and lack of innovation.
The lack of specialization, along with integration and standardization difficulties, are the primary disadvantages of the divisional structure. Examples A functional organization usually has the chief executive officer CEO as its head. Some organizations have one or more vice presidents who report to the CEO.
Various department managers, such as the finance manager, sales manager, production manager, and marketing manager report to the CEO or to a vice president. The staff within the functional departments report to their managers. A divisional organization is usually divided into departments that produce specific products or services.
The chief executive officer is usually at the head of the organization, but each product department has its own manager. For example, a food company with a divisional structure may have the following department managers: Each of these departments has its own finance, marketing and manufacturing sub-departments with separate managers and staff.This article attempts to clarify the differences between centralization and decentralization in an organisation, in both tabular form and in points.
Centralization is the systematic and consistent concentration of authority at central points. Unlike, decentralization is the systematic delegation of authority in an organisation. The main strength of the divisional structure is that it is very adaptable to fast changes and to differences between products, geographic locations or customers.
Also, it involves collaboration between various functions, which leads to innovation. VanNatta, Elina. "Functional vs. Divisional Organizational Structure." Bizfluent. What are the advantages of forming an LLC vs S Corp. Or, what are the disadvantages of incorporating vs LLC?
Compare incorporation, sole proprietorships, . Analytical Comparison of Flat and Vertical Organizational Structures Dr. Rishipal, Professor and Head, AIBAS, Amity University, Gurgaon, Haryana, India Abstract The emerging organizational paradigm involves complementary changes in multiple dimensions.
Traditional. A firm under Perfect competition is a Price-taker, i.e. an individual firm has no control over the price and has to accept the price as determined by the market forces of demand and supply.
A monopolist is a Price-Maker, i.e., a firm has complete control over the price and fixes its own price. A. Organization structure consists of vital pillars of an organization which the organization is composed of.
Frame of Organizational Structure: Work Specialization: Work specialization is a key factor of organization structure. In the organization there are several jobs along their workers.