Organizational Structure: Factors, Management and Business Analysis

This report examines various organizational structures, including Line, Staff, and Functional organizations, within the context of business management. It explores the roles of key stakeholders, such as the President, Manager, employees and consumers, and their impact on organizational success. The report also delves into both internal factors (employees, management, objectives, resources, and culture) and external factors (economic, technological, competitive, financial, social, and legal) influencing business operations. The report also discusses the importance of organizational structure, and its role in ensuring balance and effective communication. The report provides valuable insights into organizational design and its impact on business performance, referencing key academic sources. This report is designed to provide a comprehensive overview of organizational structures and their impact on business management, offering a practical understanding of how these structures can be leveraged to achieve organizational goals.

O R G A N I Z AT I O N A L B E H AV I O R S
FA C T O R S A F F E C T I N G T H E O R G A N I Z AT I O N
S C O P E F O R E X PA N S I O N
S U S TA I N A B L E M A N A G E M E N T
Business Management

Organizational Structure
It is the hierarchy of
the organization
defining job
position .
It also considers
functional role of the
person within an
organization.
Line
organizati
on
Line staff
organizati
on
Functional
organizati
on
Project
organizati
on

Line Organization
It is the oldest and the simplest type of o
It is a target or goal based organization in
which the following are defined at each level
in the organizational structure.
 accountability,
 authority
 responsibility

Line and Staff Organization
It is an organizational structure for the
functioning of the larger organization
(Marume 2016).
This type of organization helps in proper
functioning due to specialized functioning
They often cause clashes between
management and employees.

Functional Organization
It is the type of organization in which each
function of the organization such as
production, management and sales are well
performed by an expert.
This type of organization is not conducive for
taking swift actions and enacting proper
discipline in the organization (Rothaermel
2015).

Project Organization
In this organization, the specialist from
different departments comes together to
develop a new approach (Kerzner 2013).
It helps to resolve any issues faced by the
organization.
It will help in the proper devising of plans for
the organizational development

Importance of Organizational Structure
The organizational
structure of an
organization helps in its
proper with the help of
the bringing a balance in
the organization with the
help of planning.
Taken into consideration
is the Line organization.
The stakeholder’s analysis
of an organization help in
planning the growth of
the organization.

President
The first quadrant is president.
The head of the organization is the position of
supreme authority and the decision-making
powers.
It is the head’s responsibility to assure that
the organizational goals are properly
communicated to their subsidiaries.

Manager
The manager is the one
who has complete
control over the working
of the employees.
The manager has an
important role to play as
the link of
communication between
the top level of the
organization and the
employees (Reina et al.
2017).

Employees
The employees play a very important role
in the functioning of the organization.
They execute the tasks assigned to them
for achieving the organizational.
They employees in this model are in the
third quadrant as there is no power and
have low interest.

Consumers
The most important member of the
stakeholder are the consumers.
They decide the success and failure of the
working of the organization.
The consumers are in the second quadrant
because they have less interest.

Internal factors in business
organization
Employees
Management
Target
Objectives
Resources
Value system
Corporate culture
Organizational structure