In this type of structure, employees are divided into departments based on product areas and/or geographic regions.
Within a functional structure, employees are divided into departments that each handles activities related to a functional area of the business, such as marketing, production, human resources, information technology, and customer service. Consequently, this structure is common for many small businesses. If the firm is a sole proprietorship, one person performs all of the tasks that the organization needs to accomplish. Simple structures do not rely on formal systems of division of labor, and organizational charts are not generally needed. While no two organizational structures are exactly alike, four general types of structures are available to executives: simple, functional, multidivisional, and matrix.
If a firm’s structure is designed to maximize efficiency, for example, the firm may lack the flexibility needed to react quickly to exploit new opportunities.Įxecutives rely on vertical and horizontal linkages to create a structure that they hope will match the firm’s needs. Once a structure is created, it constrains certain future strategic moves, and supports others. As they do this, executives must realize that the choice of structure will influence their firm’s strategy and strategic options in the future. When creating a structure for their firm, executives will take one of these types and adapt it to fit the firm’s unique circumstances. Like snowflakes, however, no two organizational structures are exactly alike. Four types of structures are available to executives: (1) simple, (2) functional, (3) multidivisional, and (4) matrix ( Figure 9.6 “Common Organizational Structures”). Within most firms, executives rely on vertical and horizontal linkages to create a structure that they hope will match the needs of their firm’s strategy. Understand why a change in structure may be needed.Know and be able to differentiate among the four types of organizational structure.The Alt key causes the Shapes to snap to the corners and edges of the grid. Tip: To align the blocks of the org chart to the spreadsheet's grid, hold down the ALT key as you draw or resize the Shapes. Tip: If you click on a connector line and the end shows a red bubble - that means it is connected to the other object. To add a connector line, go to Insert > Shapes and choose one of the Connector objects.A contextual ribbon is then displayed which will allow you to select a ready-made format. Click on the rectangle you just inserted.Go to Insert > Shapes and choose one of the rectangular shapes.To help you get started, follow these steps: When it comes to creating flow charts and diagrams, Excel is great! Not only do you have many rectangular shapes available to you (various types of rounded and chamfered corners), but it is also extremely easy to add color, gradients, and shading to the blocks of your organization chart by just selecting formats from the gallery of themes. By default, Autoshapes in Excel move and resize with the cells. You can resize an entire row or column of blocks in your organization chart by just resizing the row or column.You can use drawing guides and turn on a grid in PowerPoint, but it's not as easy as using the grid in Excel. Think of the spreadsheet grid as your "drawing grid".
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How to Create an Organizational Chart in Excel
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