Answer:
A. Organizing business companies is important because it improves monitoring and accountability. It also helps businesses identify the resources it needs to grow. Finally it is also necessary for product diversification, such as building a new product line, contributes to business efficiency and helps reduce waste.
B. Yes because specialization and differentiation are the structural adaptation of certain body parts for a particular function.
C. The types of organizational structure are as follows:
- Hierarchical structure- A hierarchical structure, also known as a line organization, is the most common type of organizational structure. The chain of command is what you can think of any company: Power flows from the board of directors down to the CEO throughout the rest of the company from top to bottom. It makes a hierarchical structure a centralized organizational structure.
- Functional structure- The functional structure is a centralized structure that greatly overlaps with the hierarchical structure. However, the role of a staff director instead falls into each department head - in other words, each department has its own staff director, who reports to the CEO.
- Divisional structure- The centralized structure, known as a divisional organization, is more common in enterprise companies with many large departments, markets or territories. For example, a food conglomerate can operate in a divisional structure so that each of the food and product lines can have full autonomy. In the divisional structure, each line or product has its own chief executive.
- Flat structure- A flat structure is a decentralized organizational structure in which almost all employees have equal strength. At most, executives may have just a bit more authority than employees. This organizational structure is common in startups that take a modern approach to work or do not yet have enough employees to divide into departments.
- Matrix structure- The matrix structure is a liquid form of the classic hierarchical structure. This centralized organizational structure allows employees to move from one department to another as needed.
- Team structure- The team structure is a decentralized but formal structure that allows department leaders to collaborate with employees from other departments as needed. It is similar to a matrix structure, but the focus is less on employee fluidity than on supervisor fluidity, leading to a decentralized functional structure.
- Network structure- A network structure is especially suitable for a large, multi-city or even international company operating in modern times. It organizes not only relationships with departments in one office location, but relationships within different locations and teams of freelancers of each location, third-party companies for whom some activities are -outsource, and more. While this may sound like a lot for a type of network structure to be detailed, it shows how useful this decentralized structure is, especially for understanding the human resources at your company’s hands.
- Projectized structure- In a projectized structure, the focus is on one project at a time. In this centralized organizational structure, project managers act as supervisors, not just resource allocators and decision makers. Unlike other types of structure, a projectized structure involves the demobilization of teams and resources in the completion of a project. But it is like other types of organizational structures with an obvious hierarchy that exists.
Explanation:
Organizational structure is a set of policies, roles, relationships and responsibilities that determine how a company’s activities should be directed to achieve goals. It also oversees the flow of information through company levels and outlines reporting relevance among midlevel staff, senior management, executives and owners. This is an effective hierarchy for a company, although some organizational structures emphasize an almost total lack of hierarchy.
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