Organization structureis the outcome of the organizing process. An effective structure will result in increased profitability of the enterprise.
The organization structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources. It allows correlation and coordination among human, physical and financial resources and this enables a business enterprise to accomplish desired goals.
Types of Organization Structures
The type of structure adopted by an organization will vary with the nature and types of activities performed by an origination. The organizational structure can be classified under two categories which are as follows:
Functional structure is an organizational design that groups similar or related jobs together eg. production, purchase, marketing, accounts etc.,
Divisional structure : the organization structure comprises of separate business units or divisions. Each unit has a divisional manager responsible for performance and who has authority over the unit.
Participants