9. Organisation of Companies Flashcards
What are the structural types of an organization?
Functional; Divisional; Matrix; and Project-based structures.
What are the advantages of a Functional structure?
Chief executive in touch with all operations reduces control mechanisms clear definition of responsibilities specialists at senior and middle management levels.
What are the disadvantages of a Functional structure?
Senior managers overburdened with routine matters neglect strategic issues difficult to cope with diversity coordination between functions is difficult failure to adapt.
What are the advantages of a Divisional structure?
Flexible (add or divest divisions) control by performance ownership of strategy specialization of competences training in strategic view.
What are the disadvantages of a Divisional structure?
Duplication of central and divisional functions fragmentation and non-cooperation danger of loss of central control.
What are the advantages of a Matrix structure?
Integrated knowledge flexible allows for dual dimensions.
What are the disadvantages of a Matrix structure?
Length of time to take decisions unclear job and task responsibilities unclear cost and profit responsibilities high degrees of conflict.
What is a Project-based structure?
A structure where teams are created undertake the work and are then dissolved.
What are the design tests for checking structural solutions?
Market Orientation Parenting Advantage People (Qualification and Motivation) Feasibility Specialized Cultures Difficult Links Redundant Hierarchy Accountability Flexibility Resource Efficiency.
What are the key takeaways regarding organizational structures?
Different structural types have advantages and disadvantages in terms of realizing market orientation parenting advantage people motivation feasibility dealing with specialized cultures accountability flexibility or resource efficiency. The strategy pursued influences the best suited organizational structure.
