MGT3002

Structures of Organization

The structure of an organization has a major in�uence on behavior. This fact is often either ignored or

downplayed by researchers and authors.

Consider a classroom with 25 people in it. You are one of the students. The group has met for a lecture

on Organizational Behavior as part of the BBA program at a University. The group has a professor who will lead the lecture, two research assistants who will assist the professor with Microsoft PowerPoint

presentations and some short lectures, and 22 BBA students. These are the elements or

the organizational structure of the class—the goal, the roles, the distribution of authority, and the

group size.

The classroom is large, the ceilings are high, and the room has several windows through which the

brightness of the day is evident. All 25 people are seated on chairs laid out in a circle and there is little other furniture. These are the elements of the physical structure of the class. Visualize how you might

feel and behave in this class.

Now take another scenario with the same class. This class is made of the professor and 24 students.

The room is smaller, less bright, has more furniture, and the seating is in 3 rows facing the professor. In

Scenario 2, both the organizational and the physical structure are different. Now visualize how you

might feel and behave in this class.

You will feel and behave differently in each of the two settings. That is because both the organizational and physical structures (or contexts) strongly in�uence both your feelings and consequent behavior.

Organizations are set up in speci�c ways to accomplish different goals, and the structure of an

organization can help or hinder its progress toward accomplishing these goals. Organizations large and

small can achieve higher sales and other pro�t by properly matching their needs with the structure

they use to operate. There are three main types of organizational structure: functional, divisional and

matrix structure.

Functional Structure- Functional structure is set up so that each portion of the organization is

grouped according to its purpose.

Divisional Structure- Divisional structure typically is used in larger companies that operate in

a wide geographic area or that have separate smaller organizations within the umbrella group

to cover different types of products or market areas.

Matrix - The third main type of organizational structure, called the matrix structure, is a hybrid of divisional and functional structure.

Additional Materials

Structures of Organizations (media/week5/SUO_MGT3002%20W5%20L3.pdf?

_&d2lSessionVal=Dh2361TaX5c44Gyjjfk2NJXyF&ou=89692) 