The organizational structure of a company determines the powerful department, the one that deals with decision-making, and the service delivery department. In other words, every organization or company has a structure that defines its hierarchy as well as the roles and responsibilities of each department. An organization, whether big or small, requires a defined organizational structure to help with its progress or hinder any obstacles from achieving its goals. Overall, this paper will discuss the different types of organizational structure and how they are beneficial to an organization.
Functional organizational structure is the most common type used in the industry. It divides the company in terms of specialization like human resources, marketing, and sales. Each staff is grouped under their area of specialization, for instance, people qualified in marketing are placed under the marketing department. Managers or directors, depending on their size, manage the departments. Notably, this type of organizational structure is effective because it allows professionals to dedicate their time to one function; therefore, can be used in both large and small teams. Also, this organizational structure makes it easier to access the professionals qualified for a specific job needed because they are in the same area. However, the structure is prone to conflict, especially if people from different departments cannot get along in a specific project, which can be the case with head of departments. If a team cannot work harmoniously together, then functional organizational structure can lead to poor results
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Projectized organization is whereby the entire organization is grouped in terms of projects, and each group independently governs itself. Typically, projected organization is a form of self-contained structure, as each department operates like sub-organizations under one large organization, and supervise their own activities. Teams are grouped according to the type of project, which are decided upon by the top management. Generally, this type of organizational structure mostly serves for a short period, and once the project is done, they are dismantled (Harrin, 2018). The organizational structure is mainly used by organizations that deal with different types of customers. In addition, projectized organizational structure makes it easier for the management to create a strong team that is best for the set goals considering other team members are focused on the team goals. The structure is clearly defined by set objectives as well a deadline for example a project for a new hospital. Resources are solely committed to the project, which makes it easier to prioritize and schedule work to be done. Such an organizational structure can also be expensive; therefore, it works best for big projects. It is also stretchy and takes a longer period of time thus people involved might find it hard to go back to their functional job.
Matrix organizational structure gains its strength from both functional and projectized organizations. Both managers in a matrix organizational structure share power. Functional organization ensure sustainability while projectized ensure there is enough dedication to the project at hand. This type of organizational structure is common because it allows the managers to be flexible (Williams, 2017). One significant advantage regarding matrix organizational structure is that in terms of functional, it provides highly professional and skilled staff and in terms of projectized, projects are completed within a specific given time and technical specifications. In addition, resources are efficiently used in matrix organizational structure. However, conflicts are the major risks in this type of organizational structure. For instance, conflicts between projects in terms of resources as well as between individuals especially the managers.
Considering all the three mentioned types, functional organization structure proves to be the best, as it allows for better working efficiency because individuals with best skills are grouped together to offer best results. In addition, employees share the same knowledge, making it easier to work together. Communication is conducted in each group and shared across the departments through their leaders. Functional organization structure also allows for each head of department to operate independently, which allows for increased specialization. Highly skilled individuals have a higher chance of promotion in their fields of work, which gives them a chance to serve long term; in return, the company benefits from their own. The clear path within the organization makes it possible for the staff to be motivated to advance in their area of expertise. Because it groups people with the same skills together, then tasks are done more quickly and on time. They also perform their duties with more confidence and efficiency reducing any possible work-related mistakes.
Functional organization structure is an ideal structure because it maximizes performance by encouraging cooperation among different departments at various levels of management through supervision and cooperation. Process management in functional organizational structure is more effective because each group/department is responsible creating raw material, scrutinize the current and identify areas of improvement. Process management involves sequence of tasks that must be done for an organization to perform effectively. Moreover, process management could be a series of repeated and ongoing processes. With different departments, it can be easier to improve the organization and keep all areas functioning smoothly. Unlike the other two types, which do not allow for such process management.
An organization that is switching from a hiring process by the human resource to having each functional manager hire their own personnel through website will require a great laid out plan for such a process. In the process of hiring through a website system, the company first looks at various questions, such as the objectives of the role, goals to be achieved, what kind of candidate would be ideal for those goals and traits, skills and qualifications needed for the role. This will create a fair recruiting process (Seiter, 2018).
References
Elizabeth Harrin. (2018). Pros and cons of 3 project organizational structures; Which structure works best for you? Project Management. The Balance Careers.
Seiter , C. (2018). How we hire: A look inside our hiring process
Wililams, D. (2017). Organizational structure; 3 common types of organization structure in corporate companies . Master of Project Academy.
