Types of Organizational Structures in Management Accounting

This article discusses the different types of organizational structures in management accounting, including traditional structures, divisional structures, and matrix structures. It also explores the importance of choosing the right structure for effective organizational objectives and goals.

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Management accounting
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Evaluate Types of Organizational Structures Including Concepts for Responsibility
Accounting, Authority Delegation and Control
Organizations can be structured in different ways depending on their core goals.
Organizational structures can determine the operation and performance modes of an organization
while allowing the allocation of various responsibilities and duties to be allocated for entities like
individuals, workgroups, departments and branches. There are various organizational structures
which could be employed by Sophie’s Dream including matrix structure, divisional structures
and traditional structures.
Traditional Structures
One of the organizational structures which could be prevalent at Sophie’s Dream is the
traditional structure which is based on functional departments and divisions. According to
research conducted by Berg (2010 p.676) on “Revised terminology and concepts for
organization of seizures and epilepsies” in a report of the ILAE Commission on “Classification
and Terminology” traditional structures strictly follow the procedures and rules of the
organizations in which they have been implemented. Traditional organizational structures
involve various types of structures including the Functional Structure involving the classification
of people according to their performed functions, the Line and Staff Structure involving a
specific command line and the Line and Staff Structure involving the combination of the line
structure.
Divisional Structures
In their research on “Divisional organizational structure” Accounting Tools (2017 p.1)
indicate that divisional structures are based on the different organizational divisions. Divisional
structures could be used at Sophie’s Dream as they include geographic structure, market

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structure and product structure. These structures are significant for organizations operating in
different markets, zones and products. While using the divisional structure, Sophie’s Dream
could ensure that they follow a zonal structure, have divisions that are separate and have
different divisions for the products.
Matrix Structure
The matrix structure could be used at Sophie’s Dream. The type of organizational
structure is characterized by combining different structures of products and functions. Research
conducted by Moore (2009 p.309) on the “Influence of large-scale organization structures on
leadership behaviors” in “2009 Agile Conference” shows that the matrix structure is the most
complex structure in organizations as it involves the reporting of the matrix or grid relationships
as opposed to the traditional hierarchy. Basically, workers in an organization possess double
relationships in regards to reporting – both the product manager and functional manager. Other
kinds of organizational structures that may be in use at Sophie’s Dream include the team
structure, the network structure, the pre-bureaucratic structure and the bureaucratic structure.
Therefore, it is vital for Sophie’s Dream to adopt the organizational structure which best
conforms to the goals of the organization since wrong setups could hamper the organizational
functions leading to a failure in the achievement of effective organizational objectives and goals.

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References
Accounting tools, (2017). Divisional organizational structure. Retrieved from:
https://www.accountingtools.com/articles/2017/5/13/divisional-organizational-structure
Berg, A.T., Berkovic, S.F., Brodie, M.J., Buchhalter, J., Cross, J.H., van Emde Boas, W., Engel,
J., French, J., Glauser, T.A., Mathern, G.W. and Moshé, S.L., 2010. Revised terminology and
concepts for organization of seizures and epilepsies: report of the ILAE Commission on
Classification and Terminology, 2005–2009. Epilepsia, 51(4), pp.676-685.
Moore, E., 2009, August. Influence of large-scale organization structures on leadership
behaviors. In 2009 Agile Conference (pp. 309-313). IEEE.