Reference no: EM1351677

Step-wise answer to Organizational structure

Organizational structure is the hierarchical framework or practical methodology in which a company is formulated. The structure is made up of several significant components that develop and maintains an organizations overall functionality and productivity levels. These components include a top-down hierarchical infrastructure that consists of corporate executives to support administrators to lower-level employees. There are primarily a plethora of different organizational structures and the structure that is implemented is often at the sole discretion of the organization utilizing it. According to Khushnuma Irani (2010) organizational structures are divided into components and subcomponents based on the following:

? Traditional Structures

o Production line structures-"This is the sort of structure that allows for easy decision making, and also very informal in nature" (Khushnuma, 2010)..

o Combination of line and staff structures-"line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization" (Khushnuma, 2010).

o Functional structures-"this kind of organizational structure classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization" (Khushnuma, 2010).

- Matrix Structures-This structure combines organizational product with the organizations functionality (Khushnuma, 2010).

- Divisional Structures-this type of structure includes the divisions within the organization such as;

o Product

o Market

o Geographical