This activity is important because organizational structures differ across companies and industries. Structure affects employees day-to-day activities and can be the source of gains or losses in job performance, organizational commitment, and job satisfaction. Managers should be aware that structure should match the organizations strategy and business environment.

The goal of this activity is to demonstrate your knowledge by matching statements with the type of organizational structure.

Read each fact and match it with the correct type of organizational structure.

Matrix structure, Functional structure, or Multi-functional structure

1. The number of organizations using this type of structure is growing as teams become a more common form of organizing work. Matrix structure 2. Employees are highly specialized in their work. Functional structure 3. When companies grow to have more diverse interests and goals, this structure usually is formed. Matrix structure 4. Communication can be difficult between departments like the Marketing Department and the Finance Department. Functional structure 5. This structure helps companies gain economies of scale from the intersection of products, clients, or locations with type of function. Multidivisional structure 6. Two units can respond differently to environmental changes because there is more flexibility and independence, such as European sales versus South American sales. Matrix structure 7. Multidivisional structure Managers will supervise people who have the same type of job that they do. 8. Functional structure Employees usually have at least two managers, such as a geographic group manager and a functional manager. 9. In some organizations, groups in this structure are purposely made to compete for resources in order to drive higher performance, since each can operate independently. Functional structure