Organisational Behavior

Also, the company will find it easier to delegate duties easily and in a more organized manner. This however can have a few issues. The shareholders/ investors can have problems deciding whether or not to invest in the company as there are several products thus consolidation of the information at a higher level can be an issue. This structure of the organization has more number of benefits than drawbacks. The figure below gives a clearer view of the structure (Open Learning Foundation, 1996).b) Geographical / Territory Structure: This is a grouping based on the location where the service is most effective. Most companies that deal with repair and maintenance generally used this model of organizational structure. This is mostly to ensure that the issues faced by the customers are resolved at the earliest (Buchanan and Huczynski, 2004, p479).This is very beneficial as already mentioned for organizations that deal with repairs and maintenance services. Ideally, organizations like AAA (Car repairs), will fall into this category. This is because the main importance is given to the rapid delivery of service. However, the drawback, as the structure is focused on geographical locations, hence it requires more investments and the cost of operations also increases. The overall overheads of the company also proved to be higher than those in other structures (Dale, 2001).a) Product Structure: The best example of this type of organization is Amazon.com. This is because amazon.com deals with numerous products, if the structure is subdivided as per the products then the operations become much easier and more effective. However, if the business is designed based on other structures, then the company will have issues based on effectiveness. This is simply because the company deals with several different products that require proper planning and separate operations overall.