CHANGES IN ORGANIZATIONAL STRUCTURES Flashcards
Project Based
This organization is designed to be more flexible and responsive to market demand. There are project managers that delegate and are responsible for a particular project.
After the project is done, the team is reassembled to begin another project. Each team ‘borrows’ members of different departments to complete the projects.
Advanatges of Project Based
- Higher level of delegation - The project manager delegates tasks to different team members, which tends to be motivating because workers feel empowered.
- Each team member will do their part of the job efficiently since they are specialists in their field.
Disadvantages of Project Based
- Increased Training Costs
- Not all members of the workforce will be able to fit in this organization structure.
Shamrock Organization
The model (by Charles Handy) suggests that a business can reduce cpsts, gain competituve advantage and increase response time by trimming the workfore to retain only a multi skilled core, which is concerned with the creation of a product.
What are the 3 leafs?
- Core Managers - Employees that are essential to the business.
- Temporary/Flexible Workforce - Part-time, seasonal or temporary workers that are employed when necessary.
- Contractual Fringe - Activities that are outsourced to specialist businesses.
Advantages of Shamrock Organizations
- Allows for complete specialisation of the core: they will concentrate on innovations and gathering new ideas.
- Flexible workforce: Easy to hire and fire
- Save on staffing Costs
- Can hire experts in certain fields due to outsourced workers.
Diasdvantages of Shamrock Organizations
- Insourced workers will suffer from lack of job security which might lead to decreased motivation and productivity.
- Noat all members of the workforce will be able to fit in this organization structure.