Mgt 230 - Organizational Structure

Organizational Structure

MGT/230

January 28, 2015

Organizational Structure

A company’s organizational structure and basis for success is contingent on factors such as functionality, geographical location, product based and customer based.  Organizational structure can assist corporations with decision making by determining the reporting structure as well as identifying the chain of command within the company.   Organizational charts help manager’s delegate duties within the organization to keep work flowing.   The chart selected for the class project is the University of California, San Diego’s, which consist of a Divisional organizational structure.   It was determined a divisional structure by the breakdown of divisions which breaks down the departments into individual

Functional structure is similar to divisional structure whereas they both compartmentalize departments.  Both functional and division structures make monitoring the environment more effectively.  The UCSD divisional chart breaks the Functional structure is different from divisional structure most notably by monitoring the environments.  Economies can’t be scaled within the divisional structures as each is it’s own separate entity.  Although they both report to the Board of Directors and Chancellor they are considered separate.  According to Amy Kates, success depends on management processes for setting priorities. (1)

Geographic structure is similar to the divisional structure.  Geographical is based on location and defined by distance to other organizations in the company.  The UCSD structure is similar to the geographic whereas the divisions are not housed in the same area.  All divisions at UCSD are separate entities and have their own operational standards as well as management styles.  They are located throughout the campus but are ran differently.  The differences between the two structures are not great.  Geographic usually is dependent on long distances such as international.  However if we were to consider the University of California organizational system, it would be considered geographic due to the difference campuses within California.  Each campus has it’s own operating structure and although each campus has a similar divisional structure they are tailored to best benefit each individual campus.  

Organizational function influences the structure of an organization in a wide variety of ways.  If a company’s function is toward sales such as Coca Cola, a company’s organizational structure would be geared to a structure where marketing would be important.  Marketing which is the catalyst to Coca Cola sales, would need it’s own functional organization.  Functional organization, which focuses on production, marketing and human resources, would be beneficial to the Coca Cola Corporation.  When making a decision on which structure to choose, one must determine what is the overall objective of the company and which structure will benefit the companies growth as well as maximize profits.