Geographical Structure

 Target Company for distribution of pharmaceuticals applies a geographical structure

 The firm divides its activities by region(Cairo-Alex&Matruh-Upper Egypt-Canal –

Delta ) ,each region serves a single market with different needs and requirements ,this is

the major advantages o such structure as each division customizes its offering and

activities to serve the different needs of the different market segments in which it exists

 Each region has a manager(full time integrator) who work with cross functional

employees(HR –IT-Finance –sales –logisitics) ,this manager has full authority and power

over his regional division and his subordinates from different functions

 This structure help each regional manager to focus on the divisional goals not the goals

of each separate function

 The characteristics of the firm are as follows

1. Decentralized work place as power is giving down form top management to

middle and low level managers to perform decision making and problem solving

2. Employees are highly not specialized which means that have many tasks and

missions to be done within their job responsibilities (Low level of specialization)

3. The hierarchy is flat with large number of employees reporting the same

manager or supervisor (wide span of control)

4. The reporting levels are removed with the flat (horizontal ( structure )

5. Technical expertise is not the main concern ,flexibility ,collaboration ,creativity

,team work are the dominant organizational values

6. Workplace is challenging and with wide flexibility to deal with uncertainties

and written communication is minimum

8. The firm is a learning organization not an efficiency organization

9. Higher costly than the regular organizational structure

Functional structure

 The Egyptian American language center applies the functional structure

 The firm applies the functional structure as the firm applied the regular and old fashion

method of dividing the firm’s activities and responsibilities (HR-Finance-Purchasing –

Marketing Sales )

 This structure is suitable for small firms with few products and services like the firm in

this example

 Each functional manager is interested in his functional goals with little concern to the

overall organizational view of goals and objectives

 The firm has the following characteristics

1. Highly centralized work place as no power is giving down form top management to

middle and low level managers to perform decision making and problem solving

2. Employees are highly specialized which means that have little tasks and missions to be

done within their job responsibilities (high level of specialization)

3. The hierarchy is tall and vertical with few number of employees reporting the same

manager or supervisor (narrow span of control)

4. The reporting levels are many with the tall (vertical structure )
 5. Skills development is an advantage for employees, technical expertise is the main

concern ,while the firm lacks collaboration ,creativity ,team work .

6. Workplace is not challenging and with very little flexibility to deal with uncertainties

7. Environment is very formal (high formalization) ,communication is mainly written and

verbal communication is minimum

8. The firm is an efficiency organization not a learning organization with high ability to

push costs down using the major benefit of such structure which is the economies of

scale

 The firm tries to solve the problem of lack horizontal communication that makes the

decision making very timely due to many reporting levels by adding a network liason to

the structure (manager office manager ) which handles the communication with other

functions all over the organization

Divisional Structure

 Fragello Company for applies a Product Based structure

 The firm divides its activities by Products (Processed Food –Beverage –Confessionary)

,each division serves a single Product range with different characteristics and

manufacturing processes ,this is the major advantages o such structure as each division

customizes its offering and activities to the class of products served by the division

 Each division has a manager (full time integrator) who work with cross functional

employees(Manufacturing –Maintenance -HR –IT-Finance –sales –logistics) ,this

from different functions

 This structure help each regional manager to focus on the product goals not the goals

of each separate function and accordingly this is aligned with the organizational goals

 The characteristics of the firm are as follows

a. Decentralized work place as power is giving down form top management to

middle and low level managers to perform decision making and problem solving

b. Employees are highly not specialized which means that have many tasks and

missions to be done within their job responsibilities (Low level of specialization)

c. The hierarchy is flat with large number of employees reporting the same

manager or supervisor (wide span of control)

d. The reporting levels are removed with the flat (horizontal ( structure )

e. Technical expertise is not the main concern ,flexibility ,collaboration ,creativity

,team work are the dominant organizational values

f. Workplace is challenging and with wide flexibility to deal with uncertainties

g. Environment is less formal (low formalization) ,communication is mainly verbal

and written communication is minimum

h. The firm is a learning organization not an efficiency organization

i. Higher costly than the regular organizational structure

 The firm has the highest form of horizontal linkage in its structure which is the crisis

management and risk teams which are composed of cross functional employees with
 problem solving and innovative skills ,with a manager who directly reports to the CEO

,this allows the highest level of horizontal communication across the firm .

Matrix Structure

 Abaza motors applies the matrix structure

 This structure have a blend between the functional organizational structure and the

divisional (product) organizational structure as the firm has 2 product ranges trucks and

personal cars ,each product range has a manger (full time integrator ) each division has

with different characteristics and manufacturing processes ,this is the major advantage

of such structure as each division customizes its offering and activities to the class of

products served by the division .Each product division supervises functional

employees(Manufacturing –Maintenance -HR –IT-Finance –sales –logistics) .This part of

structure help each regional manager to focus on the product goals not the goals of

each separate function and accordingly this is aligned with the organizational goals

 In the same time those functional employees also reports to another manager who is

their functional manager and they have functional duties and responsibilities

 Accordingly both the product objectives and functional objectives are to be achieved

,this is called dual line of authority and the major drawback of such structure is the

conflict that arises between the functional and product managers ,to solve this problem

the firm had chosen to have an unbalanced matrix structure where the main power and

authority is given to the product managers because simply the firm has a main target of
 boosting the product sales while functional managers help the product managers with

administrative ,financial and human resources issues

 The characteristics of the firm are as follows

1. Time consuming due to too many meetings and direct contacts for functional

employees with their dual managers

2. The firm is medium sized and this structure best suits it

3. Decentralized work place as power is giving down form top management to

middle and low level managers to perform decision making and problem solving

4. Employees are highly not specialized which means that have many tasks and

missions to be done within their job responsibilities (Low level of specialization)

5. The hierarchy is flat with large number of employees reporting the same

manager or supervisor (wide span of control)

6. The reporting levels are removed with the flat (horizontal ( structure )

7. Here Technical expertise, flexibility ,collaboration ,creativity ,team work are the

dominant due to the blend between the functional and divisional structure

8. Workplace is challenging and with wide flexibility to deal with uncertainties

9. Environment is less formal (low formalization) ,communication is mainly verbal

and written communication is minimum

10. The firm is a learning organization not an efficiency organization

11. Higher costly than the regular organizational structure

The Egyptian American culture center is a purely mechanistic organization duer to the

following structural and contingency dimensions :

First structural

1. Highly centralized work place as no power is giving down form top management to

middle and low level managers to perform decision making and problem solving

2. Employees are highly specialized which means that have little tasks and missions to be

done within their job responsibilities (high level of specialization)

3. Strict hierarchy is tall and vertical with few number of employees reporting the same

manager or supervisor (narrow span of control).The reporting levels are many with the

tall (vertical structure )

4. Environment is very formal (high formalization) ,communication is mainly written and

verbal communication is minimum

Contextual dimensions

1. Workplace is not challenging and with very little flexibility to deal with uncertainties

2. The firm is an efficiency organization not a learning organization with high ability to

push costs down using the major benefit of such structure which is the economies of

scale

3. Rigid culture

4. Many rules and regulations

contingency dimensions

First structural

1. Decentralized work place as power (empowerment ) is giving down form top

management to middle and low level managers to perform decision making and

problem solving

2. Employees are not specialized which means that have many tasks and missions to be

done within their job responsibilities (low level of specialization)

3. Loose hierarchy is tall and horizontal with many number of employees reporting the

same manager or supervisor (wide span of control).The reporting levels are few with

the tall (flat structure )

4. Environment is very informal (low formalization) ,communication is mainly verbal and

written communication is minimum

Contextual dimensions

1. Workplace is challenging and with very high flexibility to deal with uncertainties

2. The firm is learning organization not a effienciency organization with main focus on

innovation and knowledge

3. Adaptive culture that support proactively and response and continuous market

screening

4. Moderate to few rules and regulations