[Music] grouping employees and tasks in an organization has significant impact on organizational behavior and employees let's take a look at types of organizational structures an organizational structure defines how activities such as task allocation coordination and supervision are directed toward the achievement of organizational aims as they grow organizations must decide how to carve employees into sub units this usually means grouping people in a way that somehow relates to the tasks they perform here are six common basis for grouping employees employee knowledge and skills employees are grouped by what they know for example pharmaceutical organizations have departments
like oncology and genetics by business function employees are grouped by business function for example many organizations have departments of human resources marketing and research and development employees are grouped based on the activities they do for example a realtor may have a different retail store and online departments reflecting two different sales processes output employees are grouped based on the products or services they work on client employees are grouped based on the types of clients they serve location employees are grouped based on the geographical areas they serve now let's discuss some of the structures that arise from
these different groupings a functional structure groups people with the same skills or who use similar tools or work processes together into departments for example a marketing department is staffed solely with marketing professionals a division is a collection of functions organized around a particular geographic area a geographic structure product or service a product structure or market a market structure divisional structures are common among organizations with many products or services geographical areas and customers when employees report to both a project or a product team and to a functional manager they're working in a matrix structure employees represent
their function in their work team which allows the team to house all of the skills and expertise it needs to perform effectively and make good decisions project managers coordinate the different functional contributions to the project and are held accountable for the team's performance organizations with a team-based structure create horizontal or vertical teams that can define part or all of the organization unlike matrix teams in a team-based structure performance team members form different functions and are permanently assigned to the project or product team and do not report to a second functional manager in organizations with a
lattice structure cross-functional and cross-level sub-teams are formed and dissolved as necessary to complete specific projects or tasks this structure is common in consulting organizations a network organization is a collection of autonomous units or firms that act as a single larger entity using social mechanisms for coordination and control because network organizations contract out any function that can be done better or more cheaply by outside firms like marketing or payroll managers spend a lot of time coordinating and controlling the network of contractors and strategic alliances organizational structure provides the context in which employees teams and the organization
perform [Music] you
