Advantages and Disadavantage
Essay by people • September 26, 2011 • Essay • 358 Words (2 Pages) • 1,819 Views
advantages and disadvantages:
there are three major organizational structures:
1. Functional Structure:
Functional structure groups together people with similar skills who perform similar tasks.
ADVANTAGES of functional structure:
- it results in economies of scale with efficient use of resources.
- task assignments consistent with expertise and training.
-it assists in high quality technical problem solving.
- it helps in providing in-depth training and skill development within functions.
-Functional structures also provide clear career path within functions.
Disadvantages of functional structure:
-this structure makes it difficult to identify the specific responsibilities and evidently results in their being problems as the organization's grows.
-functional structure can result in their being a functional chimney. Functional chimney results in their being a lack of communication and coordination across functions. This evidently results in their being lack of INTERDEPARTMENTAL coordination.
-there is the duplication of resources and efforts across division.
DISADVANTAGES:
-there is the duplication of resources and efforts across division.
-there would be competition and poor coordination across divisions.
-emphasis divisional goals at expense of organizational goals.
3. MATRIX STRUCTURE:
The matrix structure combines functional and divisional approaches to emphasize project or program teams.
The matrix structure is used in manufacturing, service industries, professional fields and not-for-profit organizations.
This structure is common for organizations pursuing growth strategies in dynamic and complex environments.
ADVANTAGES:
-better interfunctional corporation in operations and problem solving.
-increased flexibility in adding, removing and/or changing operations to meet changing demands.
-better customer service is provided since there is always a program, product or project manager who is fully informed.
-there is improved decision making as problem solving takes place
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