What considerations might a leader use to select a particular organizational structure?
Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Organizational structure determines the role and responsibilities within the organization.
Types of organization structure:
The organization is structured according to functional areas like marketing, human resource, operations etc. This structure is best used when creating specific, uniform products. They are economically efficient, but lack accountability. Communication between functional areas can be difficult.
Divisional structure is formed by splitting the organization into a number of self-contained business units, each of which operates as a profit centre.
This division can occour on the basis of product or market or a combination of the two with each unit tending to operate along functional or product lines, but with certain key function (e.g. finance, personnel, corporate planning) provided centrally, usually at company headquarters.
For example, General Motors' divisions include Chevrolet, Oldsmobile, Pontiac, and ...
This explains the steps to select a particular organizational structure