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smu assignments of MB0049 Q1. There cannot be a single ideal structure for all organisations as different organisations have different size, environment, resources, technologies, and goals. There are many different ways in which people can be organised to wok on projects. Explain in brief the most common types of organisation structures.

Answer: There cannot be a single ideal structure for all organisations as different organisations have different size, environment, resources, technologies, and goals. There are many different ways in which people can be organised to work on projects.
The most common types of organisation structures are:

·         Line Structure
·         Line and Staff Structure
·         Functional Structure
·         Project or Matrix Structure
These structures are also referred as the Organisational Chart. Each of these structures has their own strengths and weaknesses. Figure below depicts the four types of organisational structures.
Usually, the first two types of organisational structures are found in military form of organisations and conventional business houses respectively, where joint family system of business exists. They are inappropriate for the modern multinational organisations and also do not fit in to the bill for any project environment. Thus the discussion will be confined to the remaining two types of organisation structures in this section namely functional structures and project/matrix structures.

1 Functional-type organisation
The functional type structure organises teams of employees based upon the specific jobs within the organisation. The employees work in departments based on what they have to do such as marketing department, purchasing department, maintenance department, HR department and finance department. Figure depicts the organisational chart of functional-type organisation.
This type of structure is generally used in businesses that are into trading or manufacturing and marketing of standardised products and are usually not inclined towards new products or services unless there is a pressure of competition. For example a standard book publishing company indulges in printing and publishing standard text books for a defined audience either at the school or college level. School book publishers will not publish college level books unless the economies of scale are focused. Such a publishing house will have different functional departments viz., editing, proof reading, printing, book binding, cover designing, (all in-house jobs), purchasing paper and stationary, marketing, distributing, financing, maintaining payroll to all the staff etc.
In the functional structure, groups consist of employees performing the same function and having the same type of skills, such as software development or software testing. Each group performs its own activities to support the company's business.

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