Organisational structure and different types of structures

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Organisational structure and different how to write a memoir essay easily and fast types of structures

Organsational structure may be the interior, formal framework of a organization that shows the way in which management is linked along and how the authority is transmitted. (Stimpson P. 2011)

It is basically a framework used to spell it out the hierarchy inan organisation. Every business needs to have their own organizational structure since it helps in identifying the work at each degree of an individual accompanied by its functions and it also assists in obtaining their very own goals for development. There is a need for every type of organisation to contain their own structure specially with regards to large enterprises since it becomes difficult activities of the many departments and functions. Following will be the various kind of organisation structure a organization can have:

  1. Functional Structure:

Figure 1: Functional


This type of structure mainly focuses on the functions set up for each division of the organisation. It works well for small enterprises as each department is mainly dependent on the knowledge, skill and talent of the other personnel to support themselves. It leads to specialization and productivity in the performance, on the other hand on the other hand it can also result in conflicts as it restricts the employee of distinct departments to connect and coordinate with one another due to the boundaries of employed in their own department individually.

  1. Product Structure:

Figure 2: Product


It’s focus is on the organisations product lines and this sort of structure can mainly be found in shops which exist in several cities. Mostly large enterprises who have different type of products with their unique departments and features have this structure. Despite this structure being faster with regards to making decisions, it can also cause extra cost due to repeated functions for every product.

  1. Regional Structure:

Figure 3: Regional


Organisations who develop and duplicate section in a variety of functional areas over the region use this structure as they want to concentrate on the neighborhood strategies of the region to maintain with the competition by studying their preferences and demands.

  1. Multi-divisional Structure:

Figure 4: Multi-division


This structure can be used for large businesses which operate in huge geographical areas as the amount of functions, employees and actions are very large. The good thing about this structure is that it’s more specific and speedy but however because of the employees being in various divisions the conversation is uneasy.

  1. Multi-function Structure:

It mostly targets achieving the business enterprise goals as it various functional expertise to work together on it.

  1. Matrix Structure:

Figure 5: Matrix


This happens to be a mixture of divisional and functional structure since it handles products and functions mutually. Though it provides benefit for both structures to maintain one enterprise it could create a conflict when it comes to increased costs and internal complexity.

Organisational culture and various types of cultures

Culture is certainly compromised of the assumptions, ideals, norms and tangible indications of organisation members and their behaviour. Customers of the organisation quickly come to sense the particular culture of a business. (Katrin O. ,2010)

Organisational culture refers to the values, goals and behaviour which hold the organisation together. It quite simply predicated on customs, beliefs and guidelines which develop as time passes. It also identifies an arrangement of the targets and ideas created by the persons in the organisation and isn’t just referred to the persons employed in the business but also their products, products and services and the various process involved. There will be four primary types of cultures:

  1. Power Culture: This is employed by most organisations where the power lies at the very top level of management because they make the decisions. It’s mostly suitable for organisations that have few employees. The relationship is normally adaptive and informal which causes good personal relations.
  2. Role Culture: This is mostly within large hierarchical enterprise where each worker has their own position to execute specifically. Here the personnel work more close to their job description and so are creative in their own way. The relationship is formal in characteristics.
  3. Task Culture: Here groups are made to complete jobs appointed. Every team eventually ends up making their private cultures as they have their individual authority to create decisions. In this type of culture teams are innovative but alternatively it can also be costly because of the selling price being demanded for their service by the experts.
  4. Person Culture: This is even more of an individualistic way of life where everyone are allowed to express themselves and make decisions of their very own.

Compare and contrast two organizational chart of serious companies

The two organisations considered for this report happen to be Nestle and McDonalds.

I. Nestle

Figure 6: Nestle Logo

Source:, 2014

Nestle is a multinational provider headquartered in Switzerland. It’s main emphasis is to supply health oriented food for its customers for a healthier lifestyle following with unique varieties of products including drinks. They have goods which are specifically for people who are extremely conscious about weight gain, cornflakes which contain iron and proteins for the expansion of young children. It believes in satisfying its consumers at any stage of your day and all all over the world as their products can be found worldwide. They would like to provide reliable quality food products that may contribute towards the nutritional factor of consumers till the brand’s living. (, 2014)

Organisational Chart of Nestle

Figure 7: Nestle Organisational Chart


It can clearly be seen from their organizational framework that Peter Brabeck-Letmathe is normally the main chairman of the multinational organizational. According with their website there are 14 members of the Board of Directors. Here the shareholder will be the owners of the business accompanied by them having their very own separately legal identification from the key owner.

II. McDonalds

Figure 7: McDonalds


Mcdonalds has been working since the 12 months 1948 which is a lot more than 100 years ago, they have a very well- established market through the different countries on earth. McDonald’s may be the leading global foodservice store with more than 34,000 local restaurants serving nearly 69 million persons in 119 countries every day.

Organisational Chart of McDonalds

Figure 8: Organisation Chart McDonalds

Source: (, 2014)

Over 70% of McDonalds are run through franchise. It is kind of organisation where a organization who doesn’t want to market directly are exposed to a franchisee to sell their product to buyers based on certain regulations. McDonalds includes a functional structure design and style. Big companies as a rule have this structure where in fact the departments carry out almost all of the work. According to the chart above you can see how everything is structured along the lines. Their hierarchy starts off from their Chief Executive Officer who is at the top accompanied by operating officer etc.

When it involves comparing both of these organisations they will be both multinational businesses with a reputed photograph among their consumers. Both of their reason for existence is to engage into getting maximum consumers satisfaction as their Analysis and Development department is very efficient.

On the contrary, Nestle takes place to have a decentralized sort of structure where in fact the authority makes the decision through all levels of the organisation which means that their strategies and rules are flexible.

Whereas McDonalds includes a centralized structure where in fact the top control makes the strategies and decisions that produce the procedures and guidelines become testmyprep rigid.

Nestle includes a structure within their hierarchy chart which is usually tall with a long chain of command. However, McDonalds includes a flat composition with a controlling group at each level of their hierarchy.

Followed by Nestle having a decentralized structure, it makes their rules and regulation flexible where the management have the opportunity to make alterations in decision based on the situation. But in McDonalds due to insufficient flexibility within their organisation structure their performance and efficiency absence behind in decision building.

The important difference between these two businesses is that Nestle has a regional structure which is based on the several geographical areas. Whereas McDonalds includes a functional structure in which different features are performed by unique departments.

Bibliography List


Stimpson P.(2008). Organization Analyses. Cambridge University Press: UK

Katrin O.(2010). Organisation Traditions – An Insight in Organisation. Grin Verlag: Germany[Online]

Available at: culture&f=false

[Accessed on 25th Sep 2014]

Websites nestle organizational chart organizational chart of mcdonalds