Colorado Technical University Leadership and Quality Essay

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Business Finance

Colorado Technical University

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LP3.1 Assignment: Organizing

This assignment will assess competency 3. Analyze the fundamental characteristics of organizing.

Throughout your career, especially as a manager, you will have to understand and work in a variety of structural configurations. Changing times may force you to participate or lead a reorganization for your company. It is important to understand the structure and the effect it can have on achieving company goals. For your paper:

  1. Research and describe how the scholarly literature describes the functional and divisional approaches to structure.
  2. Select an organizational structure (see exhibit 10.3 in your book to get a start) and explain how the structure is designed to work by providing an example or scenario (make certain to address the theory’s advantages and disadvantages).
  3. Discuss how culture is reflected in the chosen theory. What types of companies might choose it? Once chosen, how might the company's culture be affected?

Explanation & Answer:
2 pages
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Explanation & Answer

Attached.

Running head: ORGANIZING

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Organizing
Student’s Name
Institutional Affiliations

ORGANIZING

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Organizing

Functional and Divisional Approaches to Structure
The research by Fairfield (2016) defines a functional approach to the structure as a
mechanism by which employees in an organization are arranged according to different structures
that influences how the organization works. In a functional structure, an organization is divided
into departmental areas according to specialization, such as marketing, production, human
resources, information technology, and customer service (Rothaermel, 2016). These functional
areas are often referred to as silos, departments that are vertical and independent of each other.
Also, the organization’s top management team basically consists of various functional heads, like
the chief financial officer and the chief operating officer (Rothaermel, 2016). Communication
generally occurs within each functional department and is transmitted across departments
through the department heads.
In a divisional structure, the teams are made in sets of divisions, a case whereby each
division is responsible for end product or service offered by the organization (Fairfield, 2016). In
this approach to structure, every division has its sets of functional units, for instance, research,
marketing, or manufacturing, and are entirely self-reliant (Rothaermel, 2016; Fairfield, 2016).
Divisional structure is less hierarchical compared to functional structure; it is organized through
the decomposition of functional structur...


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