Please respond to each classmate accordingly. Also, please make each post personable.
New Post by Brandy Richter: The different types of organizational structures are functional, divisional, matrix, process, and the customer-centrix, network. The functional structure divides the company into different departments. The divisional structure is where the business is split up based on different products. This means that one location is based on one product and they report their sole productivity to higher. The matrix structure is a mixture of the functional and divisional structures. “Some organization development (OD) practitioners have focused on maximizing the strengths and minimizing the weaknesses of both the functional and the divisional structures”. (Cummings & Worley, 2019, p.344) The process structure contains a smaller amount of leadership and is based more on the relationship of the section rather than the relationship from top to bottom within the company. The customer-centric structure focuses on ensuring customer satisfaction.
A company would choose one structure over another based on the type of product they create, and based on what aspect of the business is most important for their success. A company would need to decide if they want to maintain a formal chain, a product/division specific chain, a mix of different aspects, or customer priority. According to Cummings and Worley, Johnson & Johnson, American Express Financial Advisors, and General Electric Capital Services use the process structure. (2019, p.346) This means that these companies focus on the unit level proficiency rather than higher level proficiency.
Cummings, T.G. & Worley, C.G. (2019) – Organization development and change (11th ed.). Cengage
New Post by Mesha Lockett: Functional structure is one of the most used structures in an organization. This type of structure is used to group people by their specialized skills and recourses to perform a specific task. The second structure is the divisional structure. The divisional structure goal is to group activities based off of products, services, customers, or geography. It also allows members to experience training and increases the department to be engaged on specific tasks. The Matrix structure is the third structure. According to our textbook, this type of structure is mainly used in “Manufacturing, service, nonprofit, governmental, and professional organizations” to maximize the strength and minimize the weakness, fictional, and divisional structures. Next, is process structure which is a relatively new and fast-growing structure that utilizes the concept of eliminating hierarchy levels within the organization. Then, there is customer-centric structure. This structure focuses on creating a way to keep customers satisfied at all times. Lastly, network structure which manages the task of diversity, complex, and dynamic relationships between different organizations or units. (Cummings & Worley, 2014, p. 340-353)
I would think that a business would choose one structure over the other one based on its own outlook for the company. For example, if a company’s main focus is to keep their customers satisfied then the company should choose the customer-centric structure to achieve their goal.
We have heard of Goodwill Industries around the area. Goodwill is a non-profit industry that is known for selling donated goods at a cheaper price that other stores (About Us). Since Goodwill is a non-profit organization, it utilizes the matrix structure.
About Us. Goodwill Industries International. (n.d.). Retrieved September 12, 2022, from https://www.goodwill.org/about-us/
Cummings, T. G., & Worley, C. G. (2014). In Organization development and change (10th ed., p. 340-353). Cengage Learning