An organization structure refers to an arrangement of people, relationship and responsibilities in carrying out company activities to achieve goal. In addition it also can define as how a people in the organization are group together and to whom they report. Formal structure is needed for larger organization that decisions have to be made about the delegation of various tasks. In an organization structure clearly indicate and separate between the work activities which define by their job role. In good organization structure should explain the relationship of authority who reports to whom and for managers, who reports to them. An organization structure usually illustrated graphically in an organization chart.
There are several types of organization structure such as functional organizational structure, geographic organizational structure, matrix organizational structure and product organizational structure. Functional organizational structure refers to a group of people in the organization or department that hold similar position and perform similar task. It also indicates that who reporting to whom. The traditional way to of the organization, this is organizing people by function.
A Geographic organizational structure is typically found in companies with operation spread over a large region. This includes national and international office. It will have internal structure and management layers depending on each location. While matrix organizational structure combine two or more types of organizational structure usually is product organizational structure and functional organizational structure to create a unique blend of work environment.
Product organizational structure is the departmentalization based on product and.
Employee work in difference unit where by each unit holds the responsibilities of producing the product or service. This structure also known as a division structure. Base on this organizational structure every