It leads to uneconomical operations. 2. (vi) Functional organisation may prove unsatisfactory in handling diversified product lines and specialized projects. Privacy Policy 9. Divisional structure has some advantages: ii. The design enhances coordination and control within each of the functional area. (2013, October 4). In each of these bases, functions involved and, therefore, departments created are different. g. They are frequently responsible for acquiring any new training they might need. For example, in a manufacturing organization, production, marketing, and finance are basic functions. 8. (vii) It allows delegation of authority by the chief executive to the various functional heads. #@[[}w4. Committee Organisational Structure Features: (a) Formed for managing certain problems/situations. iv. Specialists get higher satisfaction while working on complex projects. Mechanistic and Organic Structure. iv. iv. Advantage: Specialization. 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. Organic structure represents low horizontal differentiation, low formalization, free communication, and participation by low-level members in decision-making. These networks may include Internet, extranet, and intranet. An organisation structure shows the authority and responsibility relationships between the various positions in the organisation by showing who reports to whom. However, the functional structure does not work very efficiently once the firm takes up diversification as the new activity may be quite different from the old one and may require different perspective which may not be adequately provided by functional structure. Weaknesses of a Simple Organizational Structure Many of the problems of using a simple organizational structure revolve around the workload of the owner, or that of the person at the top. The advantages of product based structure are as follows: (i) Product departmentation can reduce the coordination problems which are created under functional departmentation. v. Career patterns and professional development in specialised area. This essay sample was donated by a student to help the academic community. The two traditional bases are product and territory. WebThe structures tested in this study were simple present and present progressive tenses across the languages mentioned above. (vi) It facilitates better coordination of activities within each department. (iii) There may be lack of talented personnel to take charge of regional departments. It is also called network structure. It is easily understood by the employees. Career families, or career-graded structures, resemble Strategy formulation and its implementation functions are carried out almost by a single person as there is no scope for specialisation. ii. ii. A WebWin Win! For instance, in an industrial enterprise, the major functions like production, finance, marketing and personnel may be grouped into different departments. You can order a unique, plagiarism-free paper written by a professional writer. Following we have listed the steps you need to take to create a work breakdown structure from scratch. The products are often unrelated and require different emphasis on different functions. Horizontal integration across functional departments often becomes difficult as the organization increases the number of geographic areas served and the range of goods and services provided. The main disadvantages of the territorial structure are the following: i. iv. It enables the company to cater to the needs of the different regions more effectively. v. Enhances development of general managerial talent. When making beyond any doubt your organization is well organized, a couple of steps must be taken after: When it comes to advancing the structure of a company it is basic to communicate the proper stream of information to everyone inside the organization. When fully operational, the boundary less organization also breaks down barriers to external constituents such as customers, suppliers, regulators, and others with whom the organization deals, by linking them to the organization. Rights and obligations of each position are precisely defined and assigned. ii. It has some of the advantages of decentralisation. The concept of virtual organization/corporation, also known as networked organization or modular organization along with virtual team and office has entered management field very recently. It increases problems of central management control. This essay is available online and was probably used by another student. It also highlights the various roles and responsibilities. First, team-based organization requires a work culture that is quite different from traditional hierarchy-based organization. Require an additional layer of management. The main advantages of the simple structure are the following: i. Divisional structure may not be suitable when increase in number, size, and diversity of divisions in an organisation, and it becomes difficult for strategists to control and evaluate divisional operations. (iii) Better attention can be paid to local customer groups thereby raising the image and goodwill of the company. If the firm decides to add some new business, the basic question is how to add it because it may mean adding additional functional structure to the firm as the new business cannot easily be absorbed by the old structure. WebThis structure is simple and flexible, which makes it relatively easy to understand and to implement. Creating a Simple Static Webpage. Much research has been performed to determine whether organizational structure influences job performance and what relationship the two have. Therefore, organizational members do not find these very comfortable in comparison to traditional hierarchical systems. 3. WebAdvantages of Cooperative Society: The cooperative shape of the agency gives the subsequent advantages: Easy to Form- A cooperative society is a voluntary affiliation Though some degree of such conflicts is positive, they may often be heightened specially in the absence of coordinative force leading to destruction in the firm. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. Similarly, a commercial organisation may be divided into wholesale, retail and export departments. 21 days ago. None of them is effective in certain situations. Create and disperse departmental progression stream charts to everyone so that the bosses and their commitments are clearly caught on by everyone. However, it is not free from shortcomings. If divisions did not exist, the organization will not know which places are profitable and which are making a loss. (iv) There will also be problems in providing centralised services to various departments which are located in different regions. iii. Whenever these conditions exist, use of matrix structure is beneficial. (ii) Successful completion of the project is critical for the firm. N{6[(b+-lCe[n;V\7j0 (iv) It facilitates the timely completion of a project without disturbing the normal activities of the organisation. The data structure is a good solution for storing data on framework. (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. It helps to maintain the power and prestige of the major functions. Data structure usage provides convenience while retrieving the data from storage device. Under this structure, direct contact replaces bureaucracy. i. Matrix structure is essentially a violation of unity of command and, therefore, whole classical concepts related to the principle of unity of command are violated. }rGcJ1h%1Ipht]P/`[t"S%73z.0bDw[ee=i~{`h0[wG97\7am97lQss,[nWO Maintenance of economical central services is sometimes very difficult. Clear accountability, ii. What are the advantages and disadvantages of organizational design? c. They set their own goals and inspect their own work. Functional structure is created by grouping the activities on the basis of functions required for implementing the strategy. Moreover, our purpose here is to highlight the mission of the organizational structure, show its importance, diversification and when each type can be used. It represents traditional pyramid shaped organisation which is rigid in nature. Choice making for an organization is as a rule spared for the administrators of the organization. It is a set of planned relationships between groups of related functions and between physical factors and personnel required for the achievement of organisational goals. This is useful for those organizations whose activities are geographically spread such as banking, transport, insurance, etc. Available from: https://edubirdie.com/examples/types-of-organizational-structure-advantages-and-disadvantages/. The functional structure is commonly found in small companies and also in large companies with single product line or narrow product ranges. In this way, advantages of specialisation can be taken as managers work in a functional area and they become quite efficient in dealing with the problems of that area. Customer Based Structure 12. Thus, communication is highly formalized. iv. Reliance Industries Limited has six product divisions-textiles, polyester, fibre, intermediates, polymers, chemical, and oil and gas. Image Guidelines 4. Role of the group Vice President is often ambiguous. Market-oriented long-range growth-oriented strategies can be planned and implemented. ii. Thus assuring that its important to have a clear vision while deciding which structure to adopt taking into consideration the number of employee, type of work, because choosing the wrong one will result in un-recommended output in the whole organization and sometimes it may lead to the liquidation of the organization if not chosen well. Through this way, the horizontal boundaries are also minimised. iv. 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