Question

Draw and define org structures: simple, functional, divisional, matrix, hollow, modular, virtual

Answer 1

An organizational structure refers to how a company is organized and its functions are divided and coordinated. There are different types of structures, including simple, functional, divisional, matrix, hollow, modular, and virtual structures. Each structure has its own characteristics and is suitable for different types of organizations and goals.

Step-by-step explanation:

An organization structure refers to the way in which a company is organized and how its functions and operations are divided and coordinated. There are several types of organizational structures:

1. Simple Structure: This structure is commonly found in small organizations where the owner or founder has direct control over all aspects of the business. Decision-making is centralized, and communication flows informally.
2. Functional Structure: In this structure, the organization is divided into different departments based on functions such as marketing, finance, operations, and human resources. Each department focuses on its specific function, resulting in specialization and efficiency.
3. Divisional Structure: In a divisional structure, the organization is divided into divisions based on a specific product, market, or geographical location. Each division operates as a separate entity with its own functions and resources.
4. Matrix Structure: A matrix structure combines both functional and divisional structures. Employees are grouped based on both their specialized function and the project or product they are working on. This structure encourages collaboration and flexibility.
5. Hollow Structure: In a hollow structure, also known as a network or virtual organization, the organization outsources most of its functions and focuses on strategic decision-making and coordination. It relies on external contractors, suppliers, and partnerships to carry out its operations.
6. Modular Structure: This structure involves outsourcing different components or modules of a product or service to external suppliers or contractors. The organization focuses on integrating these modules to create the final product or service.
7. Virtual Structure: A virtual structure is a network of individuals or organizations that come together temporarily to work on a specific project or goal. Virtual teams may be geographically dispersed and use technology to collaborate.

Each structure has its advantages and disadvantages, and the choice of structure depends on the nature, size, and goals of the organization. It is crucial for organizations to align their structure with their strategy and goals to ensure effective functioning.