Business Analysis Structure of Organizations

Global economies and companies that compete in the global marketplace must use a structure to guide function. Structures like this give the organizations the framework to provide the necessary opportunities to monitor, control the quality of products and services. Their role is also to facilitate the communication between all teams and departments and streamline decision-making. Business structures define the relationship amongst participants within an organizational unit or units while they also set up the guidelines for duties, responsibilities, channels for authority and internal and external communication.

Organizational structures provide answers to the “what is the structure of the organization” question:

• Who is the leader of any particular unit? • Who do team members of the particular unit report to? • How does the unit function in the enterprise/organization? • How does the unit or units relate to the overall enterprise/organization?

Organizational structures aim to define each functioning unit, now units might be defined by the process, a product they produce or their function. Most global organizations lean towards one structure for streamlining purposes but will often incorporate a mix of these structures so they will be more flexible to maximize performance.

Here are a few of the organizational structures used by the global business community:

• Functional • Matrix • Project Team

Functional

Functional organization, groups or areas are brought together in departments that are often specialized. Departments are led by a Manager who provides leadership and is responsible for the alignment of department activities with organizational goals. Communication between the members and the manager would follow this hierarchy.

Matrix

Matrix structures provide greater fluidity in the placement of managers within teams than in a functional one. Managers will use by management in multiple departments for his/her specialized set of skills.

Project Team

This is a unique organizational structure, a project team is assembled that has its own Project Manager and that functions with independence despite remaining loyal to the organization's overall strategic goals and objectives. Teams are usually disbanded after completion of the project.

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