Horizontal organizational structure

Ø   Horizontal organizational structure is concerned with dividing organization into sub units on the basis of convenience. It is to create department on different basis such as functional areas, multidivisional structure, product structure, geographic or territory structure, matrix structure.

    i)             Functional structure: - Functional structure is very much common and simple structure that organization follows. It is to create departments on the basis of functions of an enterprise. Various departments are created on the basis of nature of functions to be performed like production department, finance, marketing, engineering and human resource departments. All department heads are experts and specialists in their areas. When the department becomes too big or work is over loaded it may be classified into sub departments. It gives rise to specialization which makes member more efficient and skilled.