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Organizational Structure

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Organizational Structure
Nicole Pruden
Mgt/230
Julie Morgan
June 17, 2012
University of Phoenix Axia College

Organizational structure is a key part of any business. Structure of the business is a prerequisite of developing a long lasting company. Success is not going to just fall at the feet of an owner. An organizational structure is the pattern or arrangement of jobs and groups of jobs within an organization. This pattern pertains to both reporting and operational relationships, provided they have some degree of permanence. All sorts of different organizational structures have been proven effective in contributing to business success. How an organization is setup can directly impact how successful the organization is in achieving those goals. Without an appropriate organizational structure, a business will not succeed. In my company, functional organization structure seems to make a permanent resting place. The functional structure organizes employees into departments based on the function they perform for the company--accounting, production or quality control, for example. The functional structure groups employees together based upon the functions of specific jobs within the organization. In this structure, employees enhance the knowledge and skills of each other in their particular departments. Another type of structure in an organization may be a divisional one. In divisional structure, each functional group is organized into its own division. Each division contains its necessary resources and functions within itself. The divisional structure breaks down into three sub-structures such as product, market, and geographical structure. Product structure groups together employees based on the product they produce. Market structure groups employees based on the market they sell to and geographical structure groups employees based on

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