(v) It helps in training of specialist managers rather than generalist managers. Advantage: Operational Clarity. The simple structure becomes inadequate as the business grows. 21 days ago. Each division may have further organisation based on functional departmentation. v. The division can be made responsible for volume of business and profitability. It promotes development of managers through increased involvement in decision-making. We will write an essay sample crafted to your needs. Multi-product organizations use this as basis for divisionalisation. Advantages of Queue: A large amount of data can be managed efficiently with ease. Divisional Structure 4. However, top management will continue to control decisions that involve strategic and coordinative variables. (vii) Functional specialisation restricts development of generalists or managers with all-round capabilities. A team-based organization is considered to be better than group-based organization as the former leads to enhanced performance, reduced costs, organizational enhancement, and better employee satisfaction. Territorial departmentation has the following advantages: (i) It leads to the benefits of local operations. It encourages general management development. vi. Innovation: Technology is a mix of apparatuses, procedures and know how and impacts hierarchical structure. Portable optical light microscopes are widely used tools in the field of microscopy. Though some of these problems may be overcome by installing appropriate security devices, computer networks do not remain fully safe. May divert the owner from strategic decisions to day-to-day operating decisions. g. They are frequently responsible for acquiring any new training they might need. When the company creates a choice making handle make sure it is caught on by the entire organization, and hold preparing classes on workflow in case required. The main benefit of this structure is that large area of building is covered. For example, Bootstrap is one of the popular free open source framework you can use to create static webpages. Divisional structure is built around business units. Divisional structure based on territories served. Such departments may be personnel, industrial relations, accounting, research and development, general administration, and so on. (v) Attempts to enforce uniform marketing and personnel policies in all the regional units may be contrary to the local needs of some units. A virtual organisation is a temporary network between a number of companies that come together to accomplish a specific venture. Retrieved from bizfluent: https://bizfluent.com/way-5207414-recommendations-improving-organization-s-structure.html, https://books.google.com.lb/books?id=CkqeSb7JH0IC&pg=PA129&dq=Flat+Structure+disadvantages&hl=en&sa=X&ved=0ahUKEwimxfOh5K7pAhVqUhUIHfveAbAQ6AEIJjAA#v=onepage&q=Flat%20Structure%20disadvantages&f=false, Get original paper written according to your instructions. Personalized program tailored to your goals As said above, product based structure is suitable only for fairly large organisations having multi-product lines and which can appoint top managerial personnel to handle semi-autonomous product divisions. Often, clash of interest generates much sooner than expected. Matrix structure is the realisation of two-dimensional structure which emanates directly from two dimensions of authority. Cost and profit responsibilities may not be very clear in the matrix organisation. This essay is available online and was probably used by another student. 2023 EduBirdie.com. Data structures also 8. It makes a difference in advancement and broadening of the works out of an affiliation. Thus, each functional staff has two bosseshis administrative head and his project manager. (ii) Project organisation provides greater flexibility in organisation; greater check over the project work, provision of determining exact responsibility and better co-ordination of organisational resources. The main purpose of this structure is to reduce the dead load. Many of these problems can be overcome through sharp focus on tasks and responsibilities of corporate and divisional management, measurement of performance of divisions, long-term policy for performance and incentives, creating more autonomy and decentralisation of authority, and finally the explicit strategies for both the firm as a whole and its various divisions. ii. Personnel are drawn from their respective functional departments. The SBU structure groups similar products, markets and/or technologies into homogeneous groups in order to achieve synergies. Content Filtration 6. The thickness of these structures is very less as compared to its width and length. It provides for a clear definition of functions and responsibilities. A team-based organization has self-managing teams and coordinating mechanism among these teams as against the traditional groups of people. This is appropriate specially when each product is relatively complex and large amount of capital is required for each product. This problem gets magnified when there is a tendency for the functional departments to become jealous of their prerogatives and fight to promote and preserve their specialisation rather than work towards unified project objectives. It is very useful where proximity to the local market can result in cost reduction. ii. On the completion of project, the internal staff will be sent back to their respective parental departments or may be shifted to other projects. Virtual or Network Organisation 14. Separate strategic and operational control, iii. This structure is suitable to firms operating in a single or related business and if they continue to grow in that area, they can be successful by following this structure. The major characteristics of a boundary less organization are as follows: i. iv. For instance, if an undertaking is in production line, the dominant element in its organisation chart would be manufacturing and assembling. Functional structure is, perhaps, most widely used in medium and large organizations with limited number of products. These flat organizational structure advantages and disadvantages show us that when it is implemented with a clear plan, it can be successful. Departmentation refers to the formal structure of the organisation composed of various departments and managerial positions and their relationships to each other. Such organizations operate in a single product/service or very closely related products/services. If teams are not created properly, there may, Types of Organisation Structure In Relation to the Attainment of the Organisational Objectives, 4. If both these types of companies put their efforts jointly to undertake any project, their combined strengths could lead to much better results than what individual companies could have achieved separately. The managers in the central organisation spend most of their time coordinating and controlling external relations. Maintenance of economical central services is sometimes very difficult. Through these networks, people of boundary less organizations communicate across intra-organizational and extra-organizational boundaries. Even though background plays an important role to be popular and admirable businessman, individuals leadership entrepreneurship abilities are a Introduction Apple Inc. (Apple) is an American multinational technology company established by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976 (Biography, 2017). The word simple has many other senses as Even the earliest adopter of this concept, GE, has not yet achieved this boundary less status. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. Websimple definition: 1. easy to understand or do; not difficult: 2. used to describe the one important fact, truth. It can also be created geographically if the company has different geographic locations. An Organization structure helps in: Ineffectively structured organizations discover that critical deadlines are not met since there were not adequate human resources in each department to achieve all parts of a given assignment, or because it was not clear whose obligation the project was. Departmentation by territories is more suitable for service industries such as transport, banks and insurance whose customers are spread throughout the country. The data structure is a good solution for storing data on framework. For example, for new product development, no functional department is created but a multidisciplinary team is created that works on a single process. None of them is effective in certain situations. For instance, three separate divisions in food preparation appliances were merged in a single SBU to serve house ware market. Functional structure provides essentially slow decision making process because the problem requiring a decision has to pass to various departments as all of them have something to say on the matter. Intel was not happy about that venture and decided not to participate in any such venture. though product lines can be added and dropped easily without dislocating the existing operations. Retrieved from Slide Share: https://www.slideshare.net/xenna_85/organizational-structure-26872255, n, n. (2018, February 15). The main advantages of the simple structure are the following: i. The owner manager gets invested with a complete knowledge of his organisation and its business. ii. Decision-making is very quick. Boundary less organizations use computer networks extensively. There are some disadvantages to having a simple organizational structure in a business, some of which include: In an organization with no managers to lead employees, the leader becomes the sole provider for employee guidance and instructions for tasks. This can give the leader more work than any other employee in the business. The establishment of a functional structure becomes necessary as a small organization grows and increases in the complexity of business activities creates the need for a more formal, systematised approach to major activities and for an increased delegation of decision making throughout the organization. Mechanistic structure is characterised by a greater degree of horizontal differentiation, high formalization (i.e., formal relations and communication), mostly downward communication, and little participation by low-level members in decision-making. 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