Culture Serves as Informal Structure in Organizations - Organisational Research Paper

Culture Serves as Informal Structure in Organizations - Organisational Behavior - Research Paper Example Organizations both small and large multinational conglomerates can achieve high profits in their business by matching their needs with the structure they employ in operation. There are various forms of organizational structures and they include function, matrix and division structures. In a functional structure, an organization is set up in order to group every portion of the organization according to its purpose and this structure works well for small businesses where each department relies on the talent and knowledge of workers and support. Nevertheless, the main drawback for the structure is that coordination and communication-linking departments are restricted by organizational boundaries that have various departments working separately. Divisional structure is employed in large organizations that work in large geographic location or in organizations that have different small organizations in the same company to take care of different forms of products or even market areas. The s tructure is beneficial in that it enables needs to be met rapidly although communication is inhibited since employees are in various divisions thus not working together; besides, the structure is costly owing to its size and scope. The matrix structure is a hybrid of both functional and divisional structures and is often employed by multinational companies since it allows the benefits of functional and divisional structures to exist in a single organization. Nevertheless, the structures create a potential for power struggles since many areas of the organization have dual management like a functional manager as well as a product or divisional manager working in the same stage and covering same managerial territory (Singh, 2010).