Organizational Structure Essay Sample

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This project will be looking at the organizational structure of Lime Jamaica (Montego Bay Head Office). Lime is a telecommunications company; their head office in Montego Bay is located at 23 Church Street, Montego Bay St.James. Lime is a public limited company. It is owned by Phil Bently. Lime specializes in phone and internet industry. Organizational structure is very important to a business because it is the framework of the business. Without an organizational structure there would be no order in the business depleting is efficiency. Organizational varies from business to business it depends on various factors. For example: If the business it big or small or if the business is specializing in just one area such as production. The researcher chose this topic because the organizational structure of a business is imperative if a business is to survive and make a profit

Literature Review
“An organizational structure can be viewed from different perspectives, Sociology, Economics and Psychology.” (Peter Stimpson, 2007) “An organizational structure is an arrangement of lines of authority, communications, rights and duties of an organization.” (Baligh, 2006).The Organizational structure of a business decides how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management. A structure depends on the organization’s objectives and strategy. “In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence.” (Madura, 2007) Example: A company such as Cash & Money that sells multiple products may organize their structure so that groups are divided according to each product. There are several different types of organizational structures. The most commonly used are: Functional, Matrix, Divisional, Geographical and product. But the researcher will only be looking at the first three structures Functional Structure

This involves the structuring an organization around basic business functions such as production and operations, marketing and finance. This organizational structure is frequently used by small to medium-sized businesses and organizations that are relatively straight forward. The organization is divided into segments based on the functions when managing. This allows the organization to enhance the efficiencies of these functional groups. As an example, take a software company. Software engineers will only staff the entire software development department. This way, management of this functional group becomes easy and effective. In addition to such advantages, there can be disadvantage from an organizational perspective if the communication between the functional groups is not effective. In this case, the organization may find it difficult to achieve some organizational objectives at the end.

Divisional Structure
“These types of organizations divide the functional areas of the organization to divisions. Each division is equipped with its own resources in order to function independently. There can be many bases to define divisions. Divisions can be defined based on the geographical basis, products/services basis, or any other measurement. As an example, take a company such as General Electrics. It can have microwave division, turbine division, etc., and these divisions have their own marketing teams, finance teams, etc. In that sense, each division can be considered as a micro-company with the main organization.

Matrix Structure
“When it comes to matrix structure, the organization places the employees based on the function and the product. This is where employees report to multiple managers in a team situation” (Madura, 2007) The matrix structure gives the best of the both worlds of functional and divisional structures. In this type of an organization, the company uses teams to complete tasks. The teams are formed based on the functions they belong to (ex: software engineers) and product they are involved in (ex: Project A). This way, there are many teams in this organization such as software engineers of project A, software engineers of project B, QA engineers of project A, etc.

“In many companies, organizational structure defines the modes and the tone of interpersonal communication. Highly stratified organizations may use more formal methods of communication between managers and employees. Meanwhile, smaller companies may leverage the relatively flat nature of their organization charts to keep communication relatively terse and informal. Effective leaders must learn how to match appropriate communication styles to company norms” (Johnson, 1993). Effective business communication relies on a feedback cycle that involves listening, speaking and confirming what has been heard, according to author and lecturer Asha Kaul. Parties engaged in highly interactive communication use the feedback cycle to reach mutually beneficial decisions.

When communication happens across different levels within an organization, the type and time frame of the feedback cycle can determine that organization’s overall effectiveness. “Teams can blend various kinds of written and spoken communication to encourage change throughout a company’s organizational chart.” (Jerald Hage, 1971) For instance, written memos denote less urgency as opposed to staff meeting that would be able to stress the urgency of the Communiqué. In this technological advanced times email takes precedence over direct spoken communication, especially when a company’s culture promotes continuous email monitoring and nearly instant replies. Speaking on the phone increases the urgency of communication, but a face-to-face meeting imbues a conversation with significance.

With the changes in businesses there is limited time for face to face communication because of this many firms rely heavily on email. People have different ways of interpreting written information, if there is no verbal communication the intended message could get lost or warped. Emails are used as a primary means of communication but are more suitable to be a secondary means of communication. Communication within an organization is more effective when done verbally this facilitates the exchange of relevant questions therefore providing proper feedback, limiting the scope for misunderstanding. Emails now become a secondary means of communication serving as a reminder.

Description of business
LIME, an acronym for ‘Landline, Internet, Mobile, Entertainment’, is a communications provider owned by the British based Cable & Wireless Communications PLC operating in Anguilla, Antigua & Barbuda, Barbados, British Virgin Islands, Cayman Islands, Dominica, Grenada, Jamaica, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines and Turks & Caicos in the Caribbean The company formed from the integrated businesses of Cable & Wireless in the Caribbean which adopted the LIME name on 3 November 2008. LIME operates as the native incumbent telecommunications service providers in many of the islands where they reside. The company also operated mobile telecommunications under the bmobile brand from 2003 until rebranding them as LIME in 2008 Mission Statement

We’re a fresh approach to telecommunications for the Caribbean. And we stand on a single principle. A promise that we’ll use our international credentials to bring the best technologies to the region and build products and services that make Caribbean people’s lives better; and a promise that we’ll deliver the best service and the best communication solutions across the board – from landline to mobile and from broadband to TV and entertainment and to understand and deliver to our Governments, Businesses, and Families Vision Statement

Always working to improve life in the Caribbean

Functional Structure

Matrix Structure

Divisional Structure


Baligh, H. H. (2006). Organization Structures: Theory and Design, Analysis and Prescription. Springer. Jerald Hage, M. A. (1971). Organization Structure and Communications. American Sociological Association. Johnson, J. D. (1993). Organizational Communication Structure. Ablex. Madura, J. (2007). Introduction to Business. Thomson South-Western. Peter Stimpson, K. S. (2007). Management f Business Unit 1. Cambridge.

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