In: Nursing
Ans. Most businesses adopt a functional organizational structure with a chain of command. In other words, different functions go into separate departments that report to department managers, who then report to someone higher up. If you adopt a functional structure, it has the advantage of clear lines of authority, with key decision-makers in each department who set the overall mission and tasks.
The structure allows each employee to concentrate on her particular mission. A functional structure for an organization is not without its drawbacks, however. You can end up with departments that don't talk to each other or cooperate well. A customer may get bounced from department to department if his problem doesn't relate to one particular function.
A divisional organizational structure spreads functions across different branches: If you have different product lines, the division for each product line has its own functional groups such as marketing, sales and accounting. The advantage of this approach is that each division of the company has the personnel to carry out all necessary functions. In essence, each division can carry out its business operations more or less autonomously.
The drawback is that with employees in each division performing identical functions, you could end up with a lot of redundancy and inefficiency. For instance, managing five human resource operations, rather than a single, centralized operation, means duplication of functions, managements systems, policy development and so on.
Using a matrix structure in your business can give you greater flexibility in business functions than a more hierarchical organization. In a matrix structure, each employee works in a function-based department, such as marketing or finance, but they can be assigned to projects under different managers and teamed with employees who have different functions. This structure adapts organizational function to changing organizational needs. The drawback is that the chain of command in a matrix may become cloudy and conflicted.