Organization structure

advantages and disadvantages of a functional organization structure

Advantages: reduced or prevents conflict of interest. Makes it easier to manage specialists disadvantages: limited authority of other managers, limited career path for other managers

entrepreneurs important information

1. Many entrepreneurs used trial and error. When first structuring a business 2. Once employee rolls in the number of employees needed to efficiently run a business are known in an organization structure can be chosen 3. As a business grows many entrepreneurs may change in organizational structure to fit the needs of the business

Functional organization structure definition

Breaks the business into different departments based on specialist

Matrix organization structure definition

Combines both a functional and divisional structures as team leaders instead of department heads that bring together employees to focus on a project

Divisional organization structure

Common form of organization structure used by small business. 1. Allows for a business to spread out the functional organization because employee jobs are divided by product or region. 2. This type of organization structure is beneficial to entrepreneurs who have employees responsible for selling different products 3. Employees might also be divided by regions in order to gain access to more customers

Functional organization structure

Most common form of organization structure used by most small businesses. entrepreneurs choose this function because it makes more sense to them. this structure breaks the department into different departments based on specialists 1. Creates a chain on command based on employee positions within the business 2. Allows employees to see how they are all working toward a common goal- marketing and promoting the business

matrix organizational structure

This type of organization structure combines both a functional and divisional structures 1. If an entrepreneur wants to operate a business internationally or in different geographic regions this might be the right choice for an organization structure 2. Has team leaders instead of department head that bring together employees to focus on a project 3.In order for a matrix organization structure to work there needs to be a balance of power between the functional manager and the divisional manager this balance of power will allow team leaders to guide employees to reach the goals or objectives of each project

Advantages and disadvantages of the divisional organizational structure

advantages: 1. Each division is able to operate independently from the parent company 2. Divisions are self-sufficient because they have their own resources 3. This system allows for a high degree of specialization disadvantages: 1. A division may feel separated from the parent company because it has too much independence 2. This feeling of separation may lead to the division only worrying about meeting it's goals and objectives and not the companies as a whole 3. This system may be more expensive to operate . Cannot share resources with other divisions

Advantages and disadvantages of a matrix organization structure

advantages: 1. Efficient use of resources because of ease of access 2. Efficient communication 3. Allows for a high degree of specialization Disadvantages: 1. Complex- can be difficult to manage 2. For example: if there is not communication between the functional manager and the divisional manager the team members might become frustrated and confused about what they are supposed to do

divisional organization structure definition

spreads out the functional organizational structure because the roles of the employees are divided by product or region