Advantages And Disadvantages Of Organizational Structure Pdf

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Product organisational structure is a framework in which a business is organised in separate divisions, each focusing on a different product or service and functioning as an individual unit within the company. In a product-based structure also known as a divisional structure , you assign employees into self-contained divisions according to:. The structure may have several layers of managers and employees.

This type of structure is called a functional organizational structur e or line and functional organization. In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. For example, the total work activities of an enterprise may be divided into various functions like purchases, production, marketing , finance, quality control.

Benefits & Disadvantages of a Functional Organizational Structure

A large manufacturing firm with multiple factories is likely to have a different organizational structure than a financial services firm with only one office. However, there are some basic types of organizational structures, each with its own advantages and disadvantages. A vertical organizational structure is based on the reporting chain from the head of the company down. It establishes the reporting relationships between people and their span of control.

One disadvantage to this sort of structure is that it tends to be bureaucratic and does not foster communication between people at different levels. Decision making may be one-sided, too, as the views of the lower ranks may not to be taken into account. A horizontal structure is a flatter organizational structure that groups together people based on their skills or functions.

The organizational structure could group those who work in a specific department together, or the grouping could be based on those who work in a functional area such as finance or marketing. One advantage of this sort of flatter hierarchy is that it is easier for employees to communicate with each other and it facilitates learning. Disadvantages are that as the company grows, there may be a lack of integration across the different functions or departments leading to inefficiencies.

Businesses working on a specific project could also have a matrix organizational structure that sets up the relationship among the people working on the project. The matrix type of project management system involves putting together people from different functional areas, such as marketing and systems, to work together for the project time frame. One advantage of the matrix organizational structure is that people across different functional areas have a better understanding of their coworkers in other areas.

A disadvantage is that employees are responsible to their project team as well as to their functional areas. This can create some conflict. This informal structure, also known as the "company grapevine," influences how information flows within the company.

One advantage of such a grapevine is that employees who interact outside the confines of the formal organizational structure often cooperate better, benefiting the organization. A disadvantage is that rumors and gossip can spread through the grapevine.

By: Corr S. Share It. References St. Thomas University: What is Bureaucratic Leadership?

Business organisational structure

Read this article to learn about Organisation Structure. After reading this article you will learn about: 1. Meaning of Organisation Structure 2. Nature and Characteristics of Organisation Structure 3. Advantages 4. Organisation structure is the pattern of organisational hierarchy based on authority responsibility relationship.

11 Advantages and Disadvantages of Functional Organizational Structure

All managers must bear that there are two organisations they must deal with-one formal and the other informal. The formal organisation in usually delineated by an organisational chart and job descriptions. The official reporting relationships are clearly known to every manager.

When a business initiates a project, it can be crucial to have an organizational structure in place to define all the aspects of the project. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. The matrix organizational structure can offer flexible ways for businesses to work on projects, however, it may be difficult to initially implement due to the multiple aspects within a project. In this article, you will learn what the matrix organizational structure is, what roles it includes and the top advantages and disadvantages of using this template for organizing a project. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management.

Organization Structure: Nature, Advantages and Demerits

8 Types of Organisational Structures: their Advantages and Disadvantages

A large manufacturing firm with multiple factories is likely to have a different organizational structure than a financial services firm with only one office. However, there are some basic types of organizational structures, each with its own advantages and disadvantages. A vertical organizational structure is based on the reporting chain from the head of the company down.

The way your organization is structured influences how you manage and run projects. It can also influence how much authority and reach you have to do your job as a project manager. There are three common organizational structures, and project managers work in all of them: functional, project, and matrix. Let's take a look at the advantages and disadvantages of each so you know what you're up against when you join a new structure. In a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department.

An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing. Explain the functional structure within the larger context of organizational structures in general. An organization can be arranged according to a variety of structures, which determine how the organization will operate and perform. In a functional structure, a common configuration, an organization is divided into smaller groups by areas of specialty such as IT, finance, operations, and marketing. Communication generally occurs within each functional department and is transmitted across departments through the department heads. Functional structure at FedEx : This organizational chart shows a broad functional structure at FedEx.

Advantage & Disadvantage of Organizational Structures

A functional organizational structure is the most common of the three organizational structures adopted by most companies. Companies organized by function group employees according to their activities in the organization. Human Resources employees have their own HR department, for example, as do employees working in sales, marketing, finance and technical support.

5 Advantages and Disadvantages of the Matrix Organizational Structure

This means the power and the responsibilities of each department. There are three different organizational structures, Functional Organization, Projectized Organization and Matrix Organization. A company can change its organizational structure according to the internal or the external conditions or requirements.

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