In: Operations Management
An organization can be arranged according to variety of structures which facilitate the organization to operate and perform. the key difference between material organization and functional organization is that material organization operates with a structure where direct lines of authority flows from top management and the lines of responsibiliy flows in the opposite direction whereas functional organization is where the company is divided into smaller groups based on specialized functional areas such as finance, production and marketing.Organizational structure has s direct impact on the speed of decision making and task allocation thus is vital aspect of an organization.level of specialisation is low in material orgainsation, whereas in functional organisation the specialisation level is high.decision in case of material orgainsation are taken by the top management and suggestion/complaints of lower level staff are usually not communicated back to the top management.