Third is the organic type. This structure has been increasing in application in the recent past. It is used by organizations that have no specific ways of working or those that are undergoing dynamic schedules. This structure allows for innovations and originality. It is common in the IT field when they are developing software. This means that the problems are solved by anybody who has the knowledge and capability. The communication structure is also both horizontal and vertical and all people participate equally. Fourth is the multiple or matrix structure. These are created when combinations of the structure discuss so far is in place.
However, this will call for tidy management otherwise there will be some conflict that is counterproductive to the organization. (Francesco and Gold, 2005, p. 235 ) Fifth is the divisional structure. These can be positioned in terms of type of service that is being offered. It can also be segmented in terms of goods, projects, financial / profit centers and other related services. Sixth is the functional structures. This is organized along activities such as engineering , accounting and sales and marketing. This plan is for purposes of in depth analysis. Finally, the geographic structures are also in practice.
This are used by the MNC and other internationally positioned companies. They are used for groups and teams operations and communications. (Francesco and Gold, 2005, p. 235 ) Strategy and Structures Michael Porter supported the idea of strategy defining the organizational structure. To that end he came up with three main structures that are defined by the strategic plans and process. First is the complexity of the organization. The more operational strategies an organization adopt the more the sections, departments , reporting and divisional level will be evident. (Porter, 1997 , Online )
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Based on this, there are more complex structures that can be adopted. In the horizontal differentiation, all task will be done at the same level irrespective of their complexity. This is typical of groups as decision making must be done at that point of the flat structure. In the vertical and hierarchical differentiation, there will be numerous levels of reporting and task execution. The higher one get up the structure the more the duties and responsibilities. Even if this is a sign of more differentiation, it may not directly mean that an employee is on a definite career progress path.
Finally on the spatial differentiation, the structure are spread out geographically and there is high use of technology to complete reporting structure. (Porter, 1997 , Online ) The second major strategy that define the organizational structure is the centralization. therefore decisions will be made based on the either few people from the top in centralized structures or from decentralized wider bases at the bottom as is the case with teams. ( Porter, 1997 , Online ) The third major strategy that defines that formalization.
This refers to the application of procedures, rules, policies and guidelines in the organization. This strategy hold that the more documentation systems there are the more an organization is considered to be modeled. Thus there are many organization that do not have rule while other have plenty. The ones with many rule have come up to explain that these are contingency measure due to past cases in fields like health and safety and quality concerns. This structural strategy has two main patterns; the bureaucratic controls and the organic controls which emphasizes team and group work. (Porter, 1997 , Online )
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