ORGANISATION AND BEHAVIOURS Essay Example | Topics and Well Written Essays - 4750 words

ORGANISATION AND BEHAVIOURS - Essay Example There are different types of organisational structure, however the three main types are: (1) Functional / Market; (2) Product and Market; and (3) Matrix. The functional/market type of organisational structure is basically categorised under the traditional style of management (Droege 2011). Per definition, it is a kind of structure wherein people are arranged according to the role they perform in the organisation (Brooks 2003). This type of structure is highly hierarchical and bureaucratic because distinctly classifying and separating the job from one to another creates a kind of structure that can be described as top-down authority management. In a functional organisational structure, people are arranged in departments which operate based on certain rules, policies, and standard operating process. Order and discipline are highly valued in this kind of organisation which normally results to a reporting system that usually follows a strictly entwined chain-of-command. However, the grow ing competition that exists in the business arena compels most organisations to expand and adjust to the changing needs of the business. With this circumstance, the purpose of the functional/market structure does not do companies any more justice as this kind of structure usually works well in small scale organisations. Hence, another organisational structure comes into operation and this is the product and market structure. Unlike the functional structure, product and market structure is more diversified and enhanced in terms of providing a quality and speedy decision-making (Droege 2011). Decision-making becomes more efficient and prompt in this organisational structure because the people who work within a certain product, customer, or geographic location are grouped together based on their capabilities, knowledge, and expertise. Compared to the functional structure, the product and market structure does not follow a strict top-down system of reporting, thus lessens pressure and i ncreases work performance. However, one major problem with product and market organisational structure, which is minimised in the functional structure, is that the interest of a particular group can be put ahead of the goals of the entire organisation. Another problem here, which is also not an issue with functional structure, is the fact that creating different groups for different products, costumers, or locations can possibly lead to unnecessary expenses due to duplication of resources. The matrix organisational structure, on the other hand, is perceived to be the most effective kind of management system, specifically for large organisations (Droege 2011). It is basically the combination of the functional and product, or more structures. The matrix structure considers what the organisation requires in order to get the best of both worlds. Unlike the first two structures, the matrix is considered to be the most intricate organisational structure but most effective if properly pull ed off. Not like the product and market structure wherein duplication of resources is an issue, a matrix structure can facilitate sharing of highly specialised employees and equipment. For instance, an employee who is an expert in a particular field can divide his/her time between one project and another. Also, because of this