CORPORATE ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL STRUCTURE:

An organizational structure is a system that outlines how certain activities are directed
in order to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities. The organizational structure also determines how information flows between
levels within the company.

CORPORATE STRUCTURE:

Corporate structure refers to the organization of different departments or business units

within a company.

THE CORPORATE ORGANIZATION STRUCTURE:

The corporate organization structure consists of the share holders, board of directors and
corporate officers. The share holders appoint the board of directors to manage the company.
Corporate officers assist the board of directors in carrying out its responsible to the
shareholders.
ORGANIZING DEPARTMENT BY WORK FUNCTION

Some businesses organize their departments by function .These functions include

production, marketing, finance, and human resources.
• Production refers to the actual creation of a company’s goods or services.
• Marketing involves product development, pricing, distribution, sales, and advertising.
• Finance refers to maintaining a company’s financial statements and obtaining credit so that
a company can grow.
• Human resources deals with hiring employees and placing them in appropriate job suction,
marketing, finance, and human resources.

TYPES OF ORGANIZATIONAL STRUCTURES

 Hierarchical organizational structure
 Matrix organizational structure
 Tall organizational structure
 Flat organizational structure

1. Hierarchical Organizational Structure

Organizations that use a traditional hierarchical structure rely on a vertical chain of command
as the prime method of organizing employees and their responsibilities. Military, government, and
other very large organizations use a hierarchy to determine the level of control employees have over
their work as well as their rank relative to others.

Hierarchical structures typically feature multiple layers of management and are therefore

prone to bureaucracy and the creation of silos that prevent cross-team collaboration.

2. Matrix Organizational Structure

A matrix structure provides for reporting levels both horizontally as well as vertically.
Employees may be part of a functional group (i.e. engineer) but may serve on a team that supports
new product development (i.e. new album). This kind of structure may have members of different
groups working together to develop a new product line.

For example, a recording engineer who works for a music publisher, may have engineers who
report to him but may also use his expertise and work with teams to develop new music albums.

The advantage of a matrix organizational structure is that employees have responsibility not
only for their department but for organizational projects. A challenge with this type of structure
presents itself when employees are given direction from two different managers and they need to
prioritize their work responsibilities.
3. Tall organizational structure

A tall organizational structure means that management is broken down into several

layers, with executives on top and normal employees on the bottom. ... In a tall organization,
there will be a large number of managers, and each manager will usually be responsible for a
small group of employees.

4. Flat organizational structure

Flat organizations have a structure with few levels of middle management between

leadership and employees—or, in some cases, no middle management at all. Small
organizations and startups often have flat structures because they have fewer employees and
less of a need for hierarchical management.

ADVANTAGES OF ORGANIZATIONAL STRUCTURE

 Multiple business locations.

 Improved operating efficiency.
 Greater employee performance.
 Eliminates duplication of work.
 Faster decision making.
 Reduced employee conflict.
 Better communication.

S. POOJA

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