Question

Explain the types of organizational structures used with global information systems

Answer 1

There are three types of Organizational structures used with global information systems

1. Functional

2. Divisional

3. Matrix.

1. Functional:

A Company is further divided into smaller groups like finance, Marketing, services, etc. Each group has a manager and he will be reporting to the top level of management. Generally, the CEO or vice president will be at the top of the hierarchy  This type of structure is present in larger companies. Decision making will be slow because it should be discussed among the organization so this is not suitable for smaller companies that require instant decision making.

2. Divisional:

There are many organizations different divisions like telecommunications, Renewable energy, petroleum, etc. Implement this kind of divisional structure. Each division operates as its own company. The division can be based on geographical. For example, America and Europe are considered as separate division An organization like Reliance is a perfect example of this kind of structure. Telecommunication(Jio) division operates as its own company it has no relation with the other divisions in the organization. One or two people will be head of the division and they will be directly reporting to the CEO of the company. Decision making is done at the divisional level.

3. Matrix:

It is the combination of both Functional and Divisional structure. Team members report to project managers and functional managers. Members of different groups join to work together to develop a product. Companies that launch new products will follow this kind of strcuture.