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Organizing The Business Enterprise

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					Organizational Structure

A guide to understanding organizational structure - what
it is, how it works, and what the best structure is for your
organization to operate efficiently and to accomplish its
goals.
       What is Organizational
       Structure?
Organizational structure is:

   The framework that defines formal reporting relationships
    between different positions.

   A system that defines the roles and responsibilities of
    individuals in the decision-making process.

   A methodology used to identify the jobs that need to be
    done within an organization and how those jobs relate to
    one another.
Types of Organizational Structures
Organizations are set up in specific ways to accomplish
different goals. The structure of an organization plays a key
role in how efficiently it runs and its ability to meet its goals
and objectives.

There are three main organization structures:

   Functional

   Divisional

   Matrix
Functional Organization
   A functional organizational structure is grouped according
    to its purpose or function.

   Each area works independently and there are distinct
    boundary lines.

   There is typically an expert, such as a director or manager,
    in charge of each area or function.

   Decision-making is decentralized within functions.
Functional Organization Chart

                                                                         President/CEO




        Accounting &                                                       Research &                                                        Sales &
                                          Engineering                                                      Purchasing
          Finance                                                         Development                                                       Marketing
                                            Director                            
				
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posted:1/31/2008
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