What are the different types of organizational design?
Some of the most common types of organizational design are functional, matrix, product or division, customers and geographical. Each of them is characterized by one primary organizational factor, such as location, nature of work or types of skills that the team has. Organizational design can be determined by characteristics such as the nature of business, work force culture and the size of society.
The functional structure is one of the simplest types of organizational design. Employees are grouped into the main work functions, which are then organized into the hierarchy. Some common categories include finance, marketing and sales. Each of these categories will usually have executive management, managers and employees. Larger companies may have supervisors who report to managers while other employees report them. It consists of the best manager who oversees several small departments.Among the highly specialized groups operated by the assortment of managers. Although this type of organizational design allows leaders to narrow their focus, there is also a risk of duplication of efforts because there are so many managers who deal with similar problems.
The matrix structure is a combination of functional and divisional types of organizational design. As with the division structure, there is a manager or executive responsible for supervision of each category. The hierarchy is similar to functional design because each division has separate teams for each project or main function. For this reason, the employee will usually report reports to two managers, one who manages the project and the other who manages the category. Common categories include finance, sale and production.
Customer type Organizational dear is determined by the needs of the customer base. The highest Executive Director usually oversees several vice -presidents, from nEach was assigned to a different type of customer. This allows each department to specialize in a specific type of product or services and its specific challenges.
Geographic organizational design divides the department according to the location. Usually one executive supervises several different offices that have resources for running basically themselves. This type of design is primarily used if the geographical differences have an impact on the way the company is running. It relies on managers with specific knowledge of the area to make informed business decisions that the corporate group could not make.