CHANGES IN ORGANIZATIONAL STRUCTURES Flashcards
(7 cards)
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.