Accounting technicians scheme west africa

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Types or Forms of Organisational Structure
There area number of alternative ways of developing the intangible webs of relationship that makeup an organisation structure. Some of these are i)
Functional Structure this is a type of departmentalization in which positions are grouped according to their main functional area, that is, positions are combined into units on the basis of similarity of expertise skills and work activities. The functional structure groups jobs according to similar economic activities, such as finance, production, marketing and personnel. For example, the production unit combines activities directly related to the manufacturing of a product or the delivery of a service marketing unit combines activities focusing on sales and promotion personnel unit is responsible for attracting and retaining organisation members and enhancing their effectiveness and finance and accounting is concerned with obtaining and managing financial resources and also deals with financial report to meet the needs of both internal and external sources. An organisation developing a functional structure must consider the specialized areas that are relevant to its own needs. For example, hospitals do not have product development departments, but they have admitting, emergency room and pharmacy departments. Churches do not have production departments but they do have youth education and choir departments. A large utility company with a functional design might have an energy generation department. It might also have a distribution department, a marketing department, a finance and account department and a personnel department. Grouping task and employees by function can be both efficient and economical. It is efficient, particularly for small organisations making a single product because it creates a clear hierarchy of authority and decision-making, (see Figure 3.3). Figure 3.3: Functional structure

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