2.2 (HL - Only) Changes in Organizational Structure Flashcards
Organizational Structures
as they are tools for making people productive and to work effectively together.
Flexible Organizational Structures
Require well-trained and motivated employees who are used to change and can adapt easily
Focuses strongly on the needs of the customers. This might involve the forming of teams which will later be disbanded once the job is complete.
Consultants and Specialists might be hired temporarily or part-time to meet the needs of the customers and any unique tasks connected to the project.
Shamrock Organization
- Core workers (paid more, more time)
- Flexible workforce (can move around jobs within the business)
- Contractual fringe (there for a short period of time to do a specialized job, leaves after complete)
Shamrock Organization Pros
Aids industries which have high seasonal variations in its sales (Holiday Shopping, Travel Industry, etc.)
- flexible (easy to change)
- could be more efficient
- lower cost
Shamrock Organization Cons
Insecure employment for the majority of the staff, which leads to limited loyalty and motivation.
Need to continually find and hire peripheral staff which is costly and time-consuming
Project-Based Organizations (PBO)
Examples often include: Construction, film/gaming/manga studios, and advertising agencies.
Two tools that PBO can use
- critical path analysis, Gantt charts
Pros of PBO
Helps with cost efficiency with less wastage as you plan per-project.
Allows the company to be responsive to changes within the customers’ changing needs, building loyalty and longer-term relationships
With the flexibility of working for different clients, it allows you to learn from strengths/weaknesses and apply these to new customers and build your roster of clients
As employees work on different projects, they gain new skills at minimal cost which carries over to other projects
Project-Based Organizations (PBO):
Disadvantages
