Organization Structure

Step 1: Understanding Functional Structure.
In a functional structure, the organization is divided into departments based on specialized functions like marketing, finance, HR, etc. Each department has its own head responsible for the management of that specific function.

Step 2: Understanding Divisional Structure.
In a divisional structure, the organization is divided into divisions based on products, services, or geographical locations. Each division operates as a separate unit with its own resources and goals.

Step 3: Differences between Functional and Divisional Structures.
1. Basis of Division: In a functional structure, division is based on specialized functions like finance, marketing, etc. In a divisional structure, division is based on products, services, or regions.
2. Responsibility: In a functional structure, functional heads are responsible for their specific functions, while in a divisional structure, division heads have more autonomy and responsibility over their divisions.

Step 4: Conclusion.
Both structures have their own advantages and are chosen based on the organization's goals and size.

Step 1: Understanding Formal Organisation.
A formal organization is one that has a defined structure and established procedures for communication and decision-making. Two advantages of formal organization are:
1. Clear Structure and Roles: In a formal organization, the roles and responsibilities of each employee are clearly defined, leading to better coordination and efficient execution of tasks.
2. Improved Control: Formal organizations have set rules and regulations that help in controlling the activities of employees, ensuring that they follow established procedures and meet performance standards.

Step 2: Conclusion.
These advantages of formal organization lead to efficiency, stability, and systematic growth in the organization.

Step 1: Understanding Informal Organisation.
An informal organization refers to the relationships that develop naturally among employees within an organization, based on mutual understanding and social interactions. Two disadvantages of informal organization are:
1. Lack of Accountability: In informal organizations, since there is no formal structure or clear roles, it can be difficult to hold individuals accountable for their actions or performance.
2. Spread of Rumors: Informal organizations can lead to the spread of rumors and misinformation, which may negatively impact employee morale and organizational harmony.

Step 2: Conclusion.
These disadvantages may lead to miscommunication and lack of control, affecting the overall efficiency of the organization.

Step 1: Importance of Organization.
An organization is essential for achieving goals and maintaining structure within a business. Two key points of its importance are:
1. Clarifies Roles and Responsibilities: An organization ensures that every employee knows their role and what is expected of them, which helps in preventing confusion and improving efficiency.
2. Resource Optimization: A proper organization helps in allocating resources (human, financial, and physical) effectively, ensuring that they are used in the most efficient manner possible.

Step 2: Conclusion.
These points demonstrate how an effective organization can lead to streamlined operations, improved efficiency, and better resource management.