The organizational structure examples are usually a subject of study so that there can be a perfect structure for a particular company. It helps an organization decide how the authority passes on, how message communication happens. There are several types of corporate structures (organizational structures), and organizations choose the one most suitable for them. Importance of an organizational structure Organizational structure is extremely important during a business. It helps managers manage the human resources issues. Allows managers to tackle as to how employee treatment occurs in the organization. It also helps employees understand what are their positions, who are they reporting to and who reports to them. It helps create a hierarchy within the business. Without a corporate structure, it would be extremely difficult to access who is responsible for what. A well-maintained organizational structure can provide a roadmap for the advancement of employees within the organization which helps motivate…
The literal meaning of division is ‘an action performed to separate certain things into a number of parts’. We often see organizations divided into several groups on different grounds such as regional, product or service. Any organization that divides its employees and other resources into different groups based on regional and product differences, such that each group is responsible and answerable for its own actions, has a divisional structure. For example, the electronics department of Samsung is completely responsible for its own actions. The smartphones department is responsible for its own actions. Moreover, a firm’s city division might be completely independent of its other city’s division. Each division would have its own advertising, sales, production, clerical, accounting, and development staff. The divisional structure tends to ease the tasks of each level of management. It becomes easier for them to evaluate staff and divisional performances and base their compensations on their…