Define organisation. Explain the classification of
organizational structure. Give suitable
examples
An organization can be defined as a structured group of individuals working together to achieve common goals or objectives. It is a system through which resources—both human and non-human—are utilized in a coordinated manner to fulfill the desired aims. In the context of management, an organization is a formalized group, with roles, responsibilities, and relationships established to meet specific goals. These structures help in organizing tasks, improving efficiency, and ensuring the smooth functioning of activities. In tourism management, organizations are integral for facilitating travel, offering services, and managing customer expectations, all of which require clear structures and roles.
Organizational structure refers to the way an organization arranges people and jobs so that work can be done and goals can be achieved. It outlines the formal hierarchy, roles, and responsibilities of employees within the organization. Organizational structures are designed to determine how tasks are divided, coordinated, and controlled to ensure operational efficiency.
The classification of organizational structure can be broadly categorized into several types. The most common classifications include:
1. Functional Structure
In a functional structure, an organization is divided into groups or departments based on specific functions, such as marketing, finance, human resources, or operations. Each department is led by a manager who is responsible for overseeing their respective function. This structure is efficient when the organization needs specialized knowledge and expertise in different areas.
- Example in Tourism Management: In a travel agency, a functional structure could mean separate departments for reservations, customer service, marketing, and finance. Each department is headed by a functional manager who reports to the higher management, ensuring smooth operations in their respective domains.
2. Divisional Structure
A divisional structure groups employees based on products, services, or geographical locations. Each division operates as a semi-autonomous unit with its own resources, such as marketing and finance teams, although they still report to the overall organization’s leadership. This structure is often adopted by large organizations to cater to different market segments or regions.
- Example in Tourism Management: A global hotel chain might use a divisional structure where divisions are created based on geographical
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