Structure of business

Organizational structure is the framework by which tasks are divided, grouped and coordinated.

ORGANIZATION CHART OR ORGANOGRAM

Organizational chart is a graphic representation or a blue print of all the units, divisions and departments and their related duties in an organization with a view to making every member be aware of the person he is directly responsible to.

TYPES OF ORGANIZATIONAL STRUCTURE

There are various types of organizational structure. Some of them are explained below.

LINE STRUCTURE: This is the oldest and simplest organizational structure which is suitable and applicable mostly to small or medium size manufacturing enterprises. It is used to denote the direct line of authority and responsibility between each superior and

1. FUNCTIONAL STRUCTURE: The activities of the organization are structured according to the basic organic functions of business undertaken by them. Under this structure, similar or related activities are grouped together under each department. E.g, production, marketing and finance.

DIAGRAM OF FUNCTIONAL ORGANIZATION IS A MANUFACTURING COMPANY

1. LINE AND STAFF STRUCTURE: This is a mixture of direct executives responsibilities with specialists auxiliary services. It resembles the line structure, only that specialists are included in the arrangement.
2. FUNCTIONAL STRUCTURE: The activities of the organization are structured according to the basic organic functions of business undertaken by them. Under this structure, similar or related activities are grouped together under each department. E.g, production, marketing and finance.

3. LINE AND STAFF STRUCTURE: This is a mixture of direct executives responsibilities with specialists auxiliary services. It resembles the line structure, only that specialists are included in the arrangement.

4.  TEAM-BASED STRUCTURE: This is made up of workgroup that performs organization’s work. It breeds departmental barriers and decentralizes decision making to the level of the teamwork.