Multi-Divisional Organizational Structure

Companies use organizational structures to characterize their hierarchical and reporting structures. The organizational structure shows the superior-subordinate equations in the organization. A multi-divisional organizational structure is used by large organizations. Here, the scale of operations is very large; hence the number of employees is also very enormous. The company divides all of its strategic functions into departments. All these departments do their share of the allocated work, and all the work is later collated as the organizational tasks.

Dividing Work

Companies that use this organizational structure split their work according to their products or geographical markets. In case, the company manufactures more than one product, it chooses to divisionalize its production. One division sets out to produce one type of product, and another sets out to manufacture the second type. Each division has its own resources for production. These resources are both materials, as well as personnel.

Authority-Responsibility Diagrams

The authority in the multi-divisional organizations rests with the top management. The organizational chart of a multi-divisional organization looks like a pyramid. It is narrow on the top and keeps getting broader as one moves down. The numbers of employees are greatest at the lowest level. These are the employees who are at the bottom -- the lowest rung in the organization. Above them are their supervisors. Above the supervisors are the team leads, and above them are the divisional managers. The work of the divisional managers is monitored by the management.

Command over Subordinates

Multi-divisional organizational structures are immensely important. As organizations grow in size and stature, it becomes mandatory for them to divisionalize their functions. It is becomes impractical to have one supreme command. The management allocates work to departmental managers, who in turn pass it onto their subordinates. This organizational structure enhances communication flows and facilitates fixation of accountability. Whenever an employee desires explanations and clarifications, he approaches his immediate superior. In case the immediate superior is not able to address the queries, she approaches her superior.

Careful Deliberation

With multi-divisional organizational structures, the company must exercise care and caution to see that it employs only the requited resources. It must not end up paying unnecessary wages and commission to middle men. It is not practically feasible that the top management would be able to monitor every task. Therefore, all roles must be carefully scrutinized.

References

• Business Dictionary: Organizational Structure
• HRM Guide: Organizational Structure