Organizational Structure

Essay by pepsiann2000 January 2009

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OrganizationalOrganizational structure is needed in organizations to arrange employees and their jobs in a certain category to help meet business goals and needs. Procedures are established that assign responsibilities for various functions. These decisions help determine organizational structure (Madapusi, 2008). Organizational structure allows greater effectiveness in organizations. Different types of organizations such as Baker Hughes Drilling Fluids, Atlanta Memorial Hospital, Doyenne Constructors, and Interfaith Ministries have a horizontal or vertical structure to determine how different levels of management will delegate (Madapusi, 2008).

Large Vertical Structure Organization With Network BasedAn organization such as Baker Hughes Drilling Fluids is categorized in a hierarchical level where authority figures are the glue that holds the company together. Baker Hughes personnel are broken down into different departments such as human resources, finance, payroll, operations, and marketing departments. Within these departments all personnel have a subtitle such as HR Analyst, Controller of Finance, Department Administrator SR Payroll, Gulf Coast Operational Manager, and Operations Marketing Account Manager.

Managers are able to delegate to subordinates at lower levels within the different companies allowing employees to perform productively (Bateman & Snell, 2007). Personnel at Baker Hughes Drilling Fluids have direct reports who eventually have to report to the Chief Executive Officer (CEO) who has to report to the Board of Directors (Madapusi, 2008).

Baker Hughes Drilling Fluids is set up in a vertical structure in which corporate governance is needed to ensure the company's goals are being met. Corporate governance is the set of customs and policies that affect the way a corporation is directed and controlled (Bateman & Snell, 2007). Corporate governance is an important factor to an organizations success (Madapusi, 2008).

Baker Hughes can be referred to as a divisional organizational as well. The company is divided into different units and is spread around by geographic locations.