Operational Structures in Business

Operational Structures in Business

Large organizations grow through subsidiaries, joint ventures, multiple divisions and departments along with mergers and acquisitions. Leaders of these organizations typically want to analyze the business based on operational structures such as industries, functions, consumers, or product lines.

Large organizations grow through subsidiaries, joint ventures, multiple divisions and departments along with mergers and acquisitions. Leaders of these organizations typically want to analyze the business based on operational structures such as industries, functions, consumers, or product lines. Additionally, leaders typically restructure their businesses to meet the requirements of the marketplace in an agile manner. A large organization requires an organizational structure that supports internal controls, effective performance measurement, and efficient delivery of goods and services. To accomplish this large organizations model multiple hierarchies to measure the effectiveness of restructuring, and to compare old and new organizational structures.

The various, multifaceted tasks and activities of an organization have to be divided into smaller, manageable components to facilitate efficient achievement of business objectives. Internally, an organization can be structured in many different ways, depending on their objectives. The internal structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual.

Types of internal organizational structures:

Given below are the common differentiation ways:

  1. Horizontal or flat organizational structures
  2. Hierarchical organizational structures
  3. Functional organizational structures
  4. Divisional organizational structures (market-based, product-based, geographic)
  5. Matrix organizational structures
  6. Network organizational structures
  7. Team-based organizational structures

Related Links

Creation Date Thursday, 29 December 2022 Hits 1971

You May Also Like

  • Horizontal or Flat Organizational Structures

    Horizontal or Flat Organizational Structures

    Flat organizational structure is an organizational model with relatively few or no levels of middle management between the executives and the frontline employees.  Its goal is to have as little hierarchy as possible between management and staff level employees. In a flat organizational structure, employees have increased involvement in the decision-making process.

  • What is a General Ledger?

    What is a General Ledger?

    The purpose of the general ledger is to sort transaction information into meaningful categories and charts of accounts. The general ledger sorts information from the general journal and converts them into account balances and this process converts data into information, necessary to prepare financial statements. This article explains what a general ledger is and some of its major functionalities.

  • Concept of Representative Office

    Concept of Representative Office

    A representative office is the easiest option for a company planning to start its operations in a foreign country. The company need not incorporate a separate legal entity nor trigger corporate income tax, as long as the activities are limited in nature.

  • Organizational Design

    Organizational Design

    An organizational design is the process by which a company defines and manages elements of structure so that an organization can control the activities necessary to achieve its goals. Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. Organizational structure is the formal system of task and activity relationships to clearly define how people coordinate their actions and use resources to achieve organizational goals.

  • GAAP to STAT Adjustments

    GAAP to STAT Adjustments

    Understand what we mean by GAAP to STAT adjustments. This article discusses the different standards that are used for multiple representations of the financial results for global organizations. Understand the meaning of US GAAP, Local GAAP, STAT, IFRS, and STAT. Finally, understand why accounting differences arise and how they are adjusted for different financial representations.

  • GL - Errors & Reversals

    GL - Errors & Reversals

    Explore the concept of journal reversals and understand the business scenarios in which users may need to reverse the accounting entries that have been already entered into the system. Understand the common sources of errors resulting in the reversal of entries and learn how to correct them. Discuss the reversal of adjustment entries and the reversal functionalities in ERPs.

  • Driving Business Efficiency through Divisions and Departments

    Driving Business Efficiency through Divisions and Departments

    In case of a multi-divisional organizational structure, there is one parent company, or head-office. And that parent owns smaller departments, under the same brand name. Dividing the firm, into several self-contained, autonomous units, provides the optimal level of centralization, in a company.

  • General Ledger - Advanced Features

    General Ledger - Advanced Features

    Modern automated general ledger systems provide detailed and powerful support for financial reporting and budgeting and can report against multiple legal entities from the single system. These systems offer many advanced functionalities right from journal capture to advanced reporting. This article will provide an overview of some advanced features available in today's General Ledgers.

  • Defining Reporting Dimensions

    Defining Reporting Dimensions

    Multitude of these legal and operational structures clubbed with accounting and reporting needs give rise to many reporting dimensions at which the organization may want to track or report its operational metrics and financial results.  This is where business dimensions play a vital role.

  • Different Types of Organizational Structures

    Different Types of Organizational Structures

    Modern business organizations run multiple product and service lines, operate globally, leverage large number of registered legal entities, and operate through complex matrix relationships.  To stay competitive in the current global business environment, they must often develop highly diverse and complex organizational structures that cross international borders.

Explore Our Free Training Articles or
Sign Up to Start With Our eLearning Courses

Subscribe to Our Newsletter


© 2023 TechnoFunc, All Rights Reserved