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Organizations are made of two or more people working together to…

Organizations are made of two or more people working together to reach a common goal. Small businesses and large corporations are both types of organizations with various levels of access to resources, notoriety, and complexity. Organizational structure brings together various aspects of organizations into one big picture and arranges how employees work together to meet common goals.

There are four main organizational structure types as follows:

Line structure uses a chain of command that goes directly from person to person in the organization. A straight line can be drawn through the levels of management from the chief executive to entry-level employees of an organization. Line managers steer the organization toward reaching goals.
Line-and-staff structure uses the line structure chain of command and includes specialists, who help line managers. These specialists are called staff managers and they give support, advice, and expertise to line managers when making decisions.
Matrix structure combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization. The Authority of managers flows down and across individual employees and these employees report to more than one person at the same time.
Virtual structure, also known as a network organization, focuses on administration as the main function performed by the organization, and other functions like marketing and finance may be contracted out to other organizations. This structure may be temporary and include multiple organizations working together to reach a common goal. Virtual structures consist of many teams working together, rather than relying on one leader.

Refer to the following scenario to see why organizational structures matter to you, and the world around you, and discuss.

Imagine you have studied business and management during your time at college and you have the good fortune of receiving multiple job offers after graduation. Congratulations! You will graduate in the coming months, and you must let your potential employers know your decision. The job offers you received vary with diverse types of organizations represented:

  5. The first job role is for a medical office manager position at Hope Health Care Clinic, a small healthcare operation where you will work directly with the office’s owner.
  6. The second job role is for a product buyer position where you will work for a manager and a specialist to determine which products to buy for sale at Sunshine Medical Office.
  7. The third job role is for a business-to-business sales position where you will report to multiple managers and work in a team of different specialists for sales of specific health product lines at the Woods Hospital corporation.
  8. The last job role is for an independent medical sales associate position and will require you to make contacts with high-level clients for healthcare equipment, the ABC company that works with several other companies to increase sales and revenue.

You have studied organizational structures and know that Hope Health Care Clinic uses a line structure. Sunshine Medical Office uses a line-and-staff structure. Woods Hospital uses a matrix structure. ABC uses a virtual structure. All job roles are compensated similarly and are appealing to you. You must decide which job offer to accept based on how you want to work with other employees and what the reporting structure would be like for an entry-level employee.

Which job role would you select: 1. Business to Business Sales at Woods Hospital, 2. Product Buyer at Sunshine Medical Office, 3. Online Sales Associate at Hope Health Care Clinic, or 4. Independent Sales Associate at ABC?

After selecting your option, explain why you made that choice? And explain what benefits and disadvantages you see?