The Importance of Defining an Organization Structure

The Importance of Defining an Organization Structure

 

There is more to an organization than the people, the product, the policies corporate law and marketing campaigns. Organization structure is the term which defines an organization and its policies. Before understanding the various types of organization structure, you need to understand what your long-term plan is, is it based on the service industry, B2B or B2C Company.

Following are a few points which you need to make a note of while deciding on the organization structure:

  • Type of Business/nature of Industry
  • Decentralization
  • Stability & adaptability
  • Strategy
  • Technology

Types of Corporate structure:

1. Functional Structure: Employees are assigned to a particular department according to their skills in an organization to reach each department’s goal.

2. Divisional Structure: Each department works on multiple brands, employees would be equally working on each brand to increase productivity.

3. Matrix Structure: This is a combination of a functional and divisional structure; each department has a director head and a director for each brand. This structure helps in increasing the process of decision-making as the directors are well-aware about the current state of each brand.

4. Hybrid Structure: Similar to Matrix Structure, this model helps in utilizing the resources available in the organization as all the employees are connected with each other and use their knowledge to develop a particular brand. It is a decentralized system with vertical and horizontal functions interacting with each other.

Need extra assistance? You can get in touch with us on the below contact details!
info@bostonfagroup.com
Bangalore:+91 80 2572 4800
USA: +1 6099377291
Pune:+91 7420061235
Visit our website: www.bostonfagroup.com

Related posts

Tips for faster and better month end closing

Tips for faster and better month end closing

The month-end closing process is one task that is dreaded by almost every person in the accounting department. Several processes are involved like depreciating fixed assets, reconciling inventory discrepancies, settling work in progress material, posting billing documents and payroll. This process can be a tedious one. But there are...

Read More
Accounting vs Bookkeeping

Accounting Vs. Bookkeeping

When we talk about accounting, in a broader sense, it involves a spectrum of varied aspects. It is basically a process of summarizing, interpreting and communicating the financial transactions that are recorded in the Books of Accounts. Bookkeeping is a part of this vast umbrella of accounting. There are...

Read More

Give a Reply