Management and organizational structure Flashcards
Types of organizational structures and designs
Types of organizational structures/designs
Functional
Matrix
Divisional
Network
Team-Based Structure
Flat Structure
Hierarchical Structure
Holacracy
Virtual Organizations
Functional structure:
Description
Advantages
Disadvantages
Description:
Organizes employees based on their specialized functional areas, such as finance, marketing, and operations.
Advantages:
Specialization, efficiency, clear career paths.
Disadvantages:
Communication barriers between functions, slow response to external changes
Divisional Structure:
Description
Advantages
Disadvantages
Description:
Divides the organization based on products, services, or geographical locations.
Advantages:
Flexibility, quick response to market changes, focus on specific markets.
Disadvantages:
Duplication of functions, potential for competition between divisions.
Matrix structure:
Description
Advantages
Disadvantages
Description:
Combines elements of both functional and divisional structures, employees report to both functional managers and project managers.
Advantages:
Flexibility, enhanced communication, expertise utilization.
Disadvantages:
Role confusion, power struggles, complexity.
Network structure:
Description
Advantages
Disadvantages
Description:
Utilizes a network of independent organizations or individuals to achieve specific tasks or projects.
Advantages:
Flexibility, access to specialized skills, cost-effectiveness.
Disadvantages:
Lack of control, coordination challenges.
Team-based structure:
Description
Advantages
Disadvantages
Description:
Organizes employees into cross-functional teams that work on projects or tasks.
Advantages:
Collaboration, adaptability, employee empowerment.
Disadvantages:
Potential for conflicts, difficulty in managing larger teams
Flat structure:
Description
Advantages
Disadvantages
Description:
Has few levels of hierarchy, often with a wide span of control.
Advantages:
Quick decision-making, open communication, reduced bureaucracy.
Disadvantages:
Limited career advancement, potential for overburdened managers.
Hierarchal structure:
Description
Advantages
Disadvantages
Description:
Traditional pyramid-shaped structure with clear lines of authority and communication.
Advantages:
Clear chain of command, stability, well-defined roles.
Disadvantages: Slow decision-making, limited flexibility, communication challenges.
Holacracy:
Description
Advantages
Disadvantages
Description:
Focuses on self-management and distributed decision-making, often eliminating traditional hierarchical roles.
Advantages:
Flexibility, adaptability, employee empowerment.
Disadvantages:
Requires a cultural shift, potential for confusion.
Virtual organization:
Description
Advantages
Disadvantages
Description:
Relies on technology to connect a network of geographically dispersed individuals or teams.
Advantages:
Global talent access, cost savings, flexibility.
Disadvantages:
Communication challenges, potential for isolation.
Reminder
Go through organic vs mechanistic structures (week 5 ppt)
