The different Types of Organizational Structures

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Matrix structure seeks to add flexibility and co-ordination to traditional vertical hierarchy. One way of doing this is to create project teams made up of members drawn up from a variety of different functions or divisions. Each individual then has a dual role, as he/she maintains functional/divisional responsibilities. As well as memberships of the project .the matrix structure is sometimes appropriate for large multi product companies which have significant interrelationships between their various operating units.

Advantages of Matrix Structures

Performance accountability rests with program, product, or project managers.

Teams enable better communication and cooperation across functions.

Teams make more decisions and solve more problems at their levels.

Top managers spend more time on strategic issues.

A cross-functional team brings together members from different functional departments.

Disadvantages of Matrix Structures

Built in conflicts

Resistance to termination

Complex command and authority relationships

Complex employee recognition systems 

Functional Structure

Figure 1.2- Functional structure.

The most common form of structure adopted when an organization has out grown the entrepreneurial one is the functional structure. This divides the organization up into its main activities or functions (production, sales, accounting and so on) and places a manger in charge of each function under the overall control of the senior manager.

Advantages of functional structure

Efficient use of specialized resources.

A career structure that enables people to advance within their functional specialism.

More deep working of decisions on functional directions

Disadvantages of functional structure

Built in conflicts

Resistance to termination·

Complex command and authority relationships

Complex employee recognition systems 

Features of organization charts

Customers or visitors to a firm can gain an immediate impression of the overall size of an organisation

Employees can see at a glance who reports to who

Employees can see who they are responsible for

Useful for new employees to get a feeling for the whole business.

Advantages of Organization Charts

Managers of different organizational subunits.

In many instances, small firms that do rather well in the early stages of their development begin to fail when the founders can no longer manage in their personal styles.

In the absence of an organization chart to clarify relationships, illogical and confusing ones will develop.

Employees can see at a glance who reports to who

Useful for new employees to get a feeling for the whole business

Supporters of organization charts claim that they are tools that can effectively delineate work responsibilities and reporting relationships

Disadvantages of Organization Charts

Detractors point out that formal organization charts do not recognize informal lines of communication and influence that are quite vital in many business settings.

In some instances, for example, an organization chart may depict two employees as being equal in power and influence, when in reality, one of the individuals is rapidly ascending through the ranks and has the ear of the firm's principal decision makers, while the other may be regarded as steady but unremarkable.

Critics of organization charts also sometimes charge that the diagrams may paint a misleading picture of the importance and influence of various people within an organization.

Information in an organisation chart will be out of date if employees leave the firm or new employees join.

Management levels divided into 3 levels.

Figure1.3- Management levels.

Differences can be identified between these kinds of information at the various levels of the organization.

At top management level of the organization, information tends to be ill structured, informal, external and concerned with the future.

At middle management level information is more structured, formal, internal, regular and concerned with the near future.

At operational management level information is repetitive, programmable and largely internal and has a very short time horizon.

The purposes of information therefore changes according to the level at which it is aimed. the higher up organization a manager is the less he will rely on formal information, and yet still needs to be informed(at summary level)of all the organization's activities.

Top Level Management

Top managers are responsible for overall management of the organization. They establish operating policies and guide the organizations interaction with its environment


Chief executive manager (CEO)

Deputy CEO

General manager

Duties of Top level management

Establish the overall vision and mission for the organization

Preparation of strategic plans

Represents the organization to the external environment.

Recruits middle level managers

Middle Level Management

A manager who represents a specific department or a unit will fall in to this category. They are responsible for setting departmental goals, making tactical plans and acting as a mediator between top and lower levels


Marketing manger

Finance manger

Operation managers

Duties of Middle level management

Communications and coordination between top level and lower level managers

Preparation of operational /divisional plans

Setting departmental policies, procedures, strategies etc…

Recruit , train and supervise lower level managers

Lower Level Management

Lower level managers are responsible for the work of operating employees only and do not supervise other managers. They are the lowest level of managers in the organization hierarchy


Technical supervisors

Production supervisors

Duties of lower Level Management

Ensure smooth functioning of day to day activities

Provide necessary information to middle managers in preparation of plans, budget etc….

Coordinate between operating employees and top l and middle managers.

Recruit , train and supervise operating employees

Classification mangers by the responsibility

Line managers

Line managers are the managers responsible for line activities of a business or those managers directly responsible for achieving organizational goals. Line managers possess line authority.


Chief executive manager (CEO)

Marketing manger

Production manager

Staff manger

The managers who perform supportive or staff activities of a business. In other words the managers who provide line managers with advice and services. Staff manager's posses the authority


Finance manger

Human resource manger

My justification for team above these reasons

Team projects advance communication, cooperation, and decision-making.

Members of the team get to know each other as persons, not just job titles.

Team memberships boost morale, and increase enthusiasm and task contribution.

Figure 1.4 - Organization Structure for EBS.

Responses for the Roles

CEO -head of the person in the company. Where they can take own decision reguaring all thinks in the company. Normally we are calling them as a decision makers in the company.

Finanace Manager-This is the individual who is responsible for raising suitable bebt and equity finanace,allocating finanacing to otherf operations,investing surplus funds appropriately,overlookingthepreparationoffinancialstatements,budgetpreparation,etc.his\her function requires a detail understanding of finanacial management and probably accounting skills as well.

MarkertingManager-This is the individual who is responsible forplanning prommations,advertising campaigns,making pricing and distribution decissions,brand management,labeling he\she should be a good communicator,have a broad understanding of customer views and also be able to manage their requierments effectively.

Project Manager -Project manager is one of the parties that involved in construction. Project manager has their own responsibilities to make sure that the project is constructing based on schedule. He/she always spend 70% of their time by generating, managing, sending, collecting and analysis with the data The functions of project manager are:-

effective planning

cost effectiveness

cost estimating

claims reduction

site safety and construction planning

schedule control

budget control

Administrator- this is the person that have some kind of rights after the CEO in the company or organization to manage the affairs of a business. He will control most of the department in a company. He will managing the financials, benefits, and administration of the business and will be instrumental in setting up proper controls and policies for the company. Where upon they can make decision with geting permissions from the CEO.

HRM (Human Resources Manager)-This is the individual who is responsible for identfiying labour requirement selection,recuirement,appraisal and trainning of the general employees of an organiztion.he\she should be a good commuinator,have a broad understanding of employees views and be able negtiate and motivate most employees.

Secreatary-this is the person that holds all the company details with the soft copy as well as with documented hard files also. Where upon we can get all the company details from this desk place

IT Manager-This is th individual who is responsible for managing all IS related activities within an organiztion.his\her functions include.

Formulating long term straegies.

Apprasing IS systems.

Selecting,recruting and trainning IS staff.

Servic the information requirement of all aspects of the organization(most important)

Ensuring timely upgrade of hardware & software dydtems.

Trainning general staff using IS facillities.

Overlooking organizational computer & communication systems.

Making recommendations on IS related activities to the board of directors.

Functions of management

Management & Organization

Figure 1.5 - 5 Functions of Manager.

Although management recognized as a vital activity in virtually all organizations, it is in fact very difficult to obtain agreement about the precise definition of what management is. At the basic level, it is sometimes referred to as the art of getting things done through other people. These emphases the fact, the managers achieve results by getting others to perform certain tasks.

A manager performs 5 functions in an organization. They are:






Planning-All managers constantly plan for the future planning will generally include the following stages

Setting objectives.

Developing alternatives to achieve objectives

Evaluating the alternatives

Selecting the best alternative


Review of success

Controlling-The function of monitoring the actual event and if there are any changes from the plans,taking action to correct them.

Organizing-Dividing the work among different individuals providing the relevent resourses and seeing to that the different individuals are working towards designted tasks.

Coordinating-There may be large number of organiztions performing variety of activities if the organiztion is to be succesful,they have to work towards and there should be coordination.

Commanding-According to fayol a manager issues commands which are follwed by others.this term commanding through suitable fayol's time may not be applicable to the modren work force.a modern manager should be regarded as playing the following roles instead of commanding




Decision making


Strategic plan

A Strategic plan is set of decisions that provide an overall all direction for the organization & the ways of means of moving in that direction. Strategic plans are developed by the top level managers taking the organization holistically & usually have extended time horizons & a broader scope. Strategic plan addresses.

Reasons for existence

Own strengths &weakness

Opportunities & threats posed by external environments

Rules of conduct

Main characteristics of Strategic plan

Designed by top &middle level mangers

Involves a long period of time(long term goals)

Affects a wide range of organizational activities (wide scope)

Prepared for the whole organization

Benefits of strategic management

Establish the mission

Formulate philosophy

Establish policies

Setting objectives

Developing strategy

Plan the organizational structure

Provide personnel

Steps to strategic management

Environmental analysis

Establish organizational direction

Strategy formulation

Strategy implementation

Strategic control


The business nature

The EBS is leading IT organization and No. 1 trainer and leading global IT talent development organization, with over offers 500 trained across 5 countries which is having a turnover in excess of US$ 90 million and is also a world's largest industrial organization.


Increase consumer involvement with the technology and become No.01 Company in the IT solutions in worldwide.


To help the maximum lifetime values to customer for gain the satisfaction of the customer.


Low cost products, high performance, ISO quality, customer satisfaction, customer care, technologies, and (Budget) cost savings.


Customer care, increase in consumer involvement with technology and communications globally

Products and services

The EBS does projects such as software development for the customers.


Carry out a business analysis for the company using several tools.

SWOT Analysis

Boston Consulting Group Matrix

Critical Success Factor (CSF)

PEST Analysis

What is SWOT?

A SWOT analysis generates information that is helpful in matching an organization or group's goals, programs, and capacities to the social environment in which it operates.

Factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T).

It is an instrument within strategic planning.

When combined with dialogue it is a participatory process

Figure 1.6 - SWOT.

The second step in the planning process is carrying out an environmental analysis. This step is important to the organization to understand the current status of affairs. The objective of internal analysis is to identify the strengths and weakness of the organization. This understanding is also important for an organization in building and sustaining company's competitive advantage the objective of external environmental analysis is to identify opportunities and threats in the organizations operating environment.

The Strengths of EBS company

Strengths are essentially internal to the organization and relate to matters concerning resources, programs and organization in key areas. These include.

Vast capacities to supply to the domestic market.

The largest IT consultancy in Sri Lanka.

US$ 90 million turnover.

Associate with quality certified e.g.- ISO 9001 &2008

Best quality controlling system.

We have time to dedicate with customers.

Time to time Introduce latest technology

Company service is very reliability and user friendly

The Weakness of EBS company

Weaknesses are essentially internal to the organization and relate to matters concerning resources, programs and organization in key areas. These include.

Absence of strong sales/marketing expertise.

High cost of the maintained the company.

Overdependence on few key staff.

There are more competitors' related to our service.

Emerging new technologies may move market in new directions.

Bit tough to manage &guide all the employees.

More than dependent on borrowings - Insufficient cash resources.

Board of Directors is too narrow.

Lack of awareness amongst prospective customers.

Need to relocate to larger premises.

The Opportunities OF EBS

The external opportunities confronting a company can exist or develop in the following areas:

Latest technology can be adoptable.

Market segment is poised for rapid growth

Possible to widen the market range

Motivate the staffs.

Motivate the customers.

Insert some innovative thoughts in manufacturing

Reduce the operational cost

Do contracts with new importers

TheThreats OF EBS

The external Threats confronting a company can exist or develop in the following areas

Political uncertainty


Unstable tax rates

Worldwide companies newly enter to the market.

recently imposed government taxes

Major Player may enter targeted market segment

New technology may make services obsolescent

Economic slowdown could reduce demand


Use of SWOT analysis

The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined.

BCG matrix

The BCG Growth Share Matrix is a popular approach to product portfolio planning.

The matrix is defined by two factors:

Relative market share (the company's market share relative to the competition)

Market growth.

To make use of the matrix, each individual product in our companies is placed portfolio. We have included placing into one of the four quadrants and then doing the same for our competitors' products. The result has implications for brand positioning and market share.

Figure 1.7 - BCG matrix.

Question marks -Question marks are the business in the conglomerate, which is at their initial/infant stage fixed, lost per unit is very high & are loss making. But, there is room for further investments as the market growth rate is high

Stars- Now that business which were in the question marks level, have & developed. They can be future prospects to the conglomerate as both relative market share and market growth rate is high. But, needs further investments

Cash cows-Those stars have now strongly established in their markets. Their fixed cost per unit is very low. They have a very high market share, but no potential market growth rate. Therefore, they have no room for further investments. But they generate high positive cash flows to the conglomerate

Dogs-These are the dying business in the conglomerate. Their product & services are becoming outdated. No future growth can be expected, probably loss making.

BCG Matrix for the scenario

Those are the significant details about BCG matrix. But we have to study our EBS Company belong to which part of BCG matrix whether it belongs to Star, Question mark, cash cows or dogs. When we evaluate our company in the BCG Matrix Company is moving from question mark to cash cows and EBS companies will become a full cash cows affirmed company rapidly. Here market growth rate is high as well comparative market share low but future level of our company condition will be like cash cows it denotes Here market growth rate is low as well comparative market share high.

Critical Success Factor (CSF)

CSF are the areas of movement that must be performed well EBS to achieve the mission, objectives or goals for their business. By identifying Critical Success Factors can create a general point of reference to help direct and measure the success of EBS business. As a common point of reference. CSF helps everyone in the team to know precisely what is most important. And its help people to perform their own work in the right situation and work together towards the same overall objectives.

Benefits of CSF

For specifying critical information systems

To focus attention on important matters

As an management alignment technique

Identified CSF for EBS

Marketing Variables

Decision making

Product-line coverage

Skill to deliver high value to user

Managerial ability and experience

Short while to market for new products

Distribution coverage, delivery speed, and prominence

Develop human resources

Aggressive commitment when required

High product quality

Learning systematically from past strategies

Nonexistence of product-line overlap

product cost

Info system power

Unique positioning advantage

Huge marketing resource budget

Attract the best personnel

Identification and positioning to fulfill customer needs

Buyer service and feedback

Quick decision and action capability

Strong brand image and awareness

Clear protection

Marketing inquiry quality

Prevention of price wars

Sales force size and productivity

Organizational effectiveness

Consumer loyalty

Co-operative trade relations

Analytic support capability

Understanding of how and why customers buy

Sensitivity to changing market needs

Table2- CSF.

PEST analysis

Figure 1.8 - PEST analysis.

Single method of doing this is to undertake a PEST analysis every business requires to consider a collection of external forces in order to take decisions. For numerous people imagination is very limited and is colored only by their own experience and personal beliefs which can lead to wish fulfillment or a refusal to see reality or recognize the critical changes which are happening. It can also lead to grabbing short term solutions which if they do not aggravate problems, certainly ignore the long term. In the business world pressure is often applied to take decisions quickly acting on judgment and instinct rather than care full analysis

There are many driving forces in the external environment that might impact on your business. These can be categorized as:





Social Factors -Social factors have the demographic and cultural aspects of the external macro environment. These factors influence customer wishes and the range of potential markets. Some social factors include:

Lifestyle changes

income distribution

Customer preferences.

Population increase rate

health consciousness

Distribution of income

Social mobility


Levels of education

Social -Cultural factors to survive measured by EBS

Lifestyle changes and attitudes to these Social Cultural changes.

people physical condition, education and public mobility, and attitudes to these

Population increase rate

Journalist's attitudes, community judgment, social attitudes.

Technological Factors-Technological factors are able to lower barriers to entry, decrease bare minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:

New discoveries and innovations

Speed of technology transfer

Rates of obsolescence


Information technology

Technological factors to survive considered by EBS

Impact of rising technologies

Impact of Internet, reduction in communications expenses and increased remote working

Research and Development activity

Impact of technology transmit

Economic Factors- Economic factors influence the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macro economy:

economic increase

interest charge

exchange charge

inflation charge

Economic factors to survive considered by EBS

Impact of globalization

probable impact of technological change on the economy



Disposable income

Business cycles

Energy availability and cost

Political Factors-Political factors contain government regulations and legal issues and define both formal and informal rules under which the firm must operate. A few examples include

Monopolies legislation

Environmental protection laws

Taxation policy

Employment laws

Government policy