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Name: 1. Duldulao, Marc Jason P. 2.

Guzman, Diane Date

Organization Model Score

By: Kinicki, Angelo & Williams, Brian

Reference: “Management: A Practical Introduction 5th Edition” McGraw-Hill
Epistemological Discussion:

The Simple Structure

This type of organization model is often used by small firms or start- up companies. This can
usually be seen in the early stages of a company when its creation is relatively new.
A simple structured organization’s authority is centralized through a single person. It is flat in
terms of hierarchy, has few rules and low work specialization. This type of organization model is
less complicated compared to other organization models.

The Functional Structure

In this type of organization model, persons who are similar in job qualifications are combined to
form formal groups. This is common in all organizations whether for profit or nonprofit. An
example is a manufacturing firm that designates employees depending on their working skills,
such as in Marketing Department, Production Department, Finance, etc. Another example is a
non profit educational institution that groups employees according to their specialty under
Faculty, Admission, Maintenance, and so forth.

The Divisional Structure

In this type of organizational model, persons with vast occupational specializations are put
together in formal groups by similar products or services, customers or clients, or geographic
regions. There are three examples for divisional organization model. First, for product division
an example is ABS-CBN which has various divisions such as cable television or broadcast
network, recordings, magazines, movies, etc. Second, for costumer divisions a good example is
banks which tend to serve customers according to their needs such as consumer loans, mortgage
loans, business loans, and agricultural loans. Lastly, geographic division is usually applied by
government agencies such as Bureau of Internal Revenue (BIR) which has distributed offices in
various regions in the country.

The Matrix Structure

The Matrix Structure possesses a combination of functional and divisional chains of command in
a grid in order to have two command structures namely vertical and horizontal. Although this
structure is complex, the functional usually does not change. It is the normal departments such as
Production, Sales, Marketing etc. The divisional structure though may vary as by product, brand,
customer, or geographic region. For example, Apple designing and innovating iPhone, the
company needs engineers, design specialists, and other staff for Marketing, Operations, Finance,
and HRM. Each has a superior yet they may have to report to another superior if necessary
depending on their assigned task or project.

Team-Based Structure
Team-Based Structure features teams or workgroups, temporary or permanent, which improves
horizontal relations and solve problems throughout the organization. Managers are then brought
together in teams also called as cross-functional teams to solve particular problems. The barriers
therefore between them break down and focus on solving the problems that brought them
together. Still there is a division of labor, distinct role in the company and that they have to
report to their own superiors.

The Network Structure

The Network Structure contains a central core that links to outside independent firms by way of
computer connections which are then used to operate as if it is a single organization. Firms using
this particular structure often call this as virtual corporations or virtual organizations. With this
type of structure, a firm can become a “boundaryless organization operating with extensive, even
worldwide operations, yet its basic core can remain small, thus keeping payrolls and overhead
down. The glue that holds everything together is information technology, along with strategic
alliances and contractual arrangements with supplier companies.” There are no limits, thus
connections can come from any possible places or countries in the world.

The Modular Structure

The modular structure differs with the matrix in that the modular structure is centered in
“outsourcing certain pieces of a product rather than outsourcing certain processes (such as
human resources or warehousing) of an organization. In a modular structure, a firm assembles
product chunks, or modules, provided by outside contractors. Modular structure has also been
analogously compared to “a collection of Lego bricks”.

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