Mgt 230 – Organizational Structure
Organizational Structure
MGT/230
January 23, 2012
Organizational Structure
Every business organization or company implements one of the organizational structures depending on what suits the business better. The organizational structure of Community Settlement Association and the manner in which the company conducts business on a daily basis will be reviewed. The goal is to have a clear understanding of how a business is structured and how decisions are made within the organization.
Types of Organizational Structures
There are different types of organizational structures that have become the foundation for how an organization is maintained. Each structure has advantages, and disadvantages but if used correctly and in the right environment, the structure will allow the organization to succeed (Bateman & Snell, 2011). A company’s organizational structure can either get in the way of, or help support the overall success of their projects.
Functional
The functional organization works well for large or small organizations where all the sections are geographically close together and provide a small number of goods or services. The organization is broken up into different structures based on specialty in the functional organization.
An advantage to the functional structure is the role of the functional manager, which means there’s only one boss. Having one boss makes it easier to manage specialists and reduces or prevents conflicts of interest. The disadvantage is that managers have limited authority and a limited career path in this type of structure. People may care more about their own function than about the company as a whole, and their attention