Organization structure

Organization structure is important in any organization, even it is a small company. It describes how organization divide, supervise and co- ordinate work to achieve company objective. It clearly shows the employee title, responsibility, whom to report and whom report to him. Also, it identify the relationship between employees and how they communicate to each other e.g. Operatives → Supervisor → Team leader. We can see clearly on the figure below.

There are different types of structure shows below: 

http://education-portal.com/academy/lesson/types-of-organizational-structures-functional-divisional-matrix-team-network.html#lesson

In this video, it introduces the functional structure and the divisional structure.

Functional structure

Functional structure is division similar skills and expertise into a department, for example, Marketing, HR, Accounting and Financial department. This structure has clear career path and professional development, high standard and efficiency and good internal relation because of common professional interest.

Divisional structure

Divisional structure is division work by product or service, it focus on customer needs, and meet customer quality. Also, they have the same objective, so it has a good influence to the internal relationship between employees. For example, Car company division the group by car model.

The link below is a video about Matrix structure:

http://education-portal.com/academy/lesson/types-of-contemporary-organizational-designs-matrix-team-network-designs.html#lesson

Matrix structure

This structure combines above two structures, which are functional and divisional structure. For example, a cloths company want to creates a new product; they would take some employees from each relevant department, employees from accounting to calculate the cost, marketing employees think about the promotion and advertisement and designer for new design. Using matrix structure is more flexibility and lower costs, because company could gather employee as soon as possible, and all employee will back to their own department after the project. Employees are focusing on the projects; it can increase the productivity and have faster response.

Which company should use which structure? Are there any BEST structure?

There are no standard answers for which company should use which structure or which the best is. Choosing which structure is based on the company needs.