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Olivia Hendricks South University MGT2037- Principles of Management SU02 Professor Britt 12/18/2023

Earlier this week, we learned about the five different types of organizational structures. They include the functional, divisional, matrix, team-based, and virtual network structures. The functional structure includes employees who are grouped based on their roles within their organization. Divisional focuses on employees who are grouped together by product lines, geographic region, market, and etc. Matrix tends to focus more on providing flexibility for its organization. While team-based structures are all about teams working together to reach their goal. Lastly, virtual network structures are all about their organizations being able to openly communicate and being reliable partners. As for choosing which type of organizational structure is best, it’s important to consider your business needs and goals first. “From there, you can match those needs with one of the common organizational structures. Although there isn’t a “right” answer, some organization structures are a better fit for your team than others”,(Campbell, 2022). In my opinion, I think matrix is better than any of the other organizational structures because it provides flexibility to the organization. An organization that uses the matrix structure is Target. I choose Target because it’s one of the most popular stores in America. Target uses the matrix structure to operate it’s organization. Here is an example of Target’s organizational structure:

As you can see, at the top of the organizational chart is the CEO while at the bottom is the executive vice presidents. The matrix structure helps Target manage its members and support their businesses by promoting cross-functional collaboration between their employees. Since Target is a very big company, it can be complicated for the CEOs to implement polices or systems within the

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organization. So it would be best for them to use organizational control to help them collectively work to achieve company goals. “Organizational control is the process that managers and other leaders in an organization use to ensure the company reaches its goals. It involves creating rules, procedures or best practices for an individual or department in an organization”,(Indeed, 2022). The three main types of organizational control include output control, behavioral control, and clan control. Output control is any measure of organizational control that focuses on things that you directly measure. While behavioral control relates to the policies and systems that managers use for their actions. Lastly, clan control is an indirect form of control that companies will use to control shared expectations, values, and social norms within their organization to encourage people to work toward the company’s goals. In conclusion, organizational structure defines how job titles, roles, and responsibilities are assigned within a company. It helps employees determine who they report to, and who makes decisions within their organization. Organizational structure is important because they help businesses implement decision-making processes by assigning roles to lower-level employees so that they’re able to make decisions faster. Additionally, it helps businesses provide a clear understanding of how they can better operate their organization.

References: A, Campbell. (2022). Organizational Structure: What it is and Why it is Important. Retrieved from: https://www.betterup.com/blog/organizational-structure?hs_amp=true Indeed. (2022). Organizational Control: Definition and Types. Retrieved from: https://www.indeed.com/career-advice/career-development/organizational-control https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/understanding- developing-organizational-culture.aspx

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