0 Vijay Kumar Asked: July 8, 2019In: Commerce What do you mean by organization structure? Explain the significance of organization structure. 0 Management Theory 1 Answer Voted Oldest Recent Best Answer admin Added an answer on July 8, 2019 at 10:13 am Organisation Structure: An organisation structure is the network of relationships among individual and positions in an organisation. Organisation structure is established pattern of relationship among the component parts of the organisation. The organisation structure is in the shape of pyramid and implies the following: It establishes formal relationship with well defined duties and responsibilities. Relation between superior and the subordinate within the organisation. It assignes tasks and duties to all concerned. (iv)Coordinate working of all people. It provides policies, procedure and standard of evaluation of performance by individuals and groups. Significance of organisation structure Organisation structure has following significance: Clear cut authority relationships: It specifies as to who will direct whom and who is accountable for results. Pattern of communication: It provides for pattern of coordination and communication. Location of decision centers: This structures determines the location of decision centre. Proper balancing: Structure emphasis on coordination create proper balancing. Stimulating creativity: Structures stimulate creativity and creative thinking. Encouraging growth: Organisation structures creates an environment which help in growth. Making of technological improvements: Organisations keep on making technological improvements in their operations. Types of Organisation Structure: Broadly organisation structure is as under: (a) Functional structure (b) Divisional structure (c) Adaptive structure (a) Functional structure: Functional structure are established in view of the functions assigned and to be undertaken by these organisational structures. The main advantage of this kind of structure is that it provides for functional specialisation and leads to increased operational efficiency, functional structure provide for inter-relationship with other structures of an organisation. However, this type of structures are better suited to small and middle scale enterprise and may not be suitable for large and diverse organisations. (b) Divisional structure: Divisional structure are best suited to large organisation where all functions have been assigned to semi-independent organisational divisions and are functionally responsible for their divisional output. Divisional structure are activity oriented such as an manufacturing, finance, marketing, advertising, customer services, purchase etc. Divisional structure allow for fast and accourate decisions. (c) Adaptive structure: Some organisation structures are designed to cope with unique nature of the undertaking and are known as adaptive structure and are of two types: Project Organisation and Matrix Organisation Project Organisation: It is structure adopted for successful completion of a project in a time bound manner. Matrix Organisation: Matrix organisation provides a flexible structure suited to ever changing situations and be able to adapt to such changes. 1 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerLeave an answerCancel reply Featured image Select file Browse Save my name, email, and website in this browser for the next time I comment.