The examples of organic structures include project structure, matrix structure and network structure. Therefore, some people tend to call it T-form (technology-based) organization. First, team-based organization requires a work culture that is quite different from traditional hierarchy-based organization. Functional design eliminates duplication. Horizontal integration across functional departments often becomes difficult as the organization increases the number of geographic areas served and the range of goods and services provided. Each zone has further been divided into appropriate number of divisions, for example, northern zone into four divisions located at Jalandhar, Chandigarh, New Delhi, and Ajmer. Each division has a number of branches at different places covered by the division concerned. Thus, each functional staff has two bosseshis administrative head and his project manager. The second basic structural form employed by organizations is the divisional structure. The advantages of product based structure are as follows: (i) Product departmentation can reduce the coordination problems which are created under functional departmentation. The different organisational structures described above have their own advantages and disadvantages. This structure serves the needs of the situation faced and is flexible in nature. Two complementary structurespure project structure and functional structureare merged together to create matrix structure. The construction is simple and the construction time is short. Wide range of uses. Although simple, the matrix helps companies plan their business . Personnel are drawn from their respective functional departments. Each division regulates the LIC branches in its territory and each branch has separate departments for operations such as new policies, collection of premium, adjustment of claims and administration. It tends to overburden the senior managers with routine matters. There are several advantages and disadvantages of adopting a functional organizational structure. It is easy to develop because of the limited number of interfaces and layers. Status and rank are minimised. Functional design fosters a limited point of view that focuses on a narrow set of tasks. Cost and profit responsibilities may not be very clear in the matrix organisation. This is the reason why more and more organizations are moving towards becoming boundary less organizations. Greater emphasis to the need of the customers may lead to less than optimum use of space, equipment and specialised personnel. (iv) It ensures effective utilisation of personnel in different departments. ii. It is easier to design, maintain, and update the system if it is madein layers. The main purpose of this structure is to reduce the dead load. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. It is critical in preventing system corruption in times of power outage, improving the computer systems performance through alternative disks, and making it easier and simple to clean up file systems, among others. You can work on lots of different things, sometimes in parallelalthough this point can be argued as a disadvantage as well. This structure is popular with giant firms dealing in multiple products and operating in different geographical regions. Mechanistic and Organic Structure. The owner manager gets invested with a complete knowledge of his organisation and its business. Please explain in 1 or 2 paragraphs. iii. v. Coordination of functional activities related to a product line is easy under this structure. The fundamental concept in SBU is to identify the independent product/market segments served by an organization, and creating SBUs accordingly. For example, if an organization emphasises product innovation and development in its strategy, its research and development may be given very high status. The departmentation by product places all the responsibility and authority under one manager to get the product (or service) produced and marketed. ii. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. The basic reason behind creating a virtual organization is to generate synergy through temporary alliances. In this way, advantages of specialisation can be taken as managers work in a functional area and they become quite efficient in dealing with the problems of that area. In matrix structure, a project manager is appointed to coordinate the activities of the project. The literal meaning of virtual is having the efficacy without the material part; unreal but capable of being considered as real for the purpose. (iii) The project manager has to face a very unusual decision pressure that results from the severe penalties to be imposed because of the delay in completion of the project. Therefore, organizational members do not find these very comfortable in comparison to traditional hierarchical systems. Uploader Agreement. Entrepreneurial Structure (Simple Structure): 4. Since the product divisions are semi-autonomous, it permits growth and diversification of products and services. In this system, an individuals performance is appraised by his superior, peers, subordinates, and outsiders interacting with him. Upon completion of the project, these people may return to their original departments for further assignment. An organic organizational structure refers to a flexible workplace with a horizontal mode of communication. The core of the network structure is the central organisation which coordinates relationships and activities with the other organisations in the network. Each method has its own advantages and disadvantages, and there is no one-size-fits-all solution. There is a high degree of differentiation of functional tasks. Departmentation by territory is commonly found among enterprises having business spread over a vast geographical area. In the present era of globalisation, strategic alliances and organization-customer-supplier links have become significant sources for developing competitive advantage. This structure is suitable to firms operating in a single or related business and if they continue to grow in that area, they can be successful by following this structure. (iii) There may be lack of understanding between different departments. A virtual organisation is a temporary network between a number of companies that come together to accomplish a specific venture. Maintenance of economical central services is sometimes very difficult. (vi) Since each product manager is required to supervise the diverse functions of production, sales and finance with respect to a particular product line, there is a wide scope for the training and development of all round executives. Suitable for factories, warehouses, office buildings, gymnasiums, etc. Secondly, there may be doubt over the reliability of the partners. It deemphasises chain of control, span of control, and rigid departmentation. The Ansoff matrix has advantages and disadvantages. iii. (v) It keeps problems of production isolated from those of others. vi. These networks are not fully reliable at all times. Horizontal or flat methods of communication mean that employees share their responsibilities in groups and teams and interact with different departments, managers and colleagues to complete work successfully. Disadvantages. (iii) The project must be completed within the prescribed time. Self-managing teams have the following characteristics: a. In this structure, the interfaces and levels of functionality are well separated; hence programs can access I/O routines which can cause unauthorized access to I/O routines. Each Micro-Kernel is made independently and is isolated from other Micro-Kernels. ii. Therefore, he must coordinate the instructions received from two or even more bosses. The matrix structure, which is a combination of structures, has, therefore, become popular. Geographical or Territory Based Structure 11. It encourages general management development. Besides, the individual himself appraises his performance, known as self-appraisal, which is used along with 360-degree appraisal to arrive at the conclusion about the individuals performance. Thus, a subordinate in matrix structure may receive instructions from two bosses. (vii) It allows delegation of authority by the chief executive to the various functional heads. The local managers are more conversant with their needs and those of their customers. The relationships are not rigid; they are collaborative and redefined through interaction. Taking everything on ones head has its own risks and disadvantages. Matrix structure has been evolved to overcome the limitations of traditional organization structures. We also use third-party cookies that help us analyze and understand how you use this website. For example, Century Textiles has separate divisions for textiles, cement, and shipping. Although the structure is flexible i. The functional structure is commonly found in small companies and also in large companies with single product line or narrow product ranges. When information sharing is simple, employees can use the information in their work, which can positively impact the whole organization. Product based structure is followed by giant organisations having multiple product lines. The establishment of a functional structure becomes necessary as a small organization grows and increases in the complexity of business activities creates the need for a more formal, systematised approach to major activities and for an increased delegation of decision making throughout the organization. Similarly, matrix superior has to share the facilities with others. WebThere are several advantages to using steel girder bridges: Strength: Steel is a strong and durable material, making it ideal for bridges that need to support heavy loads. Because the steel in the diagonal members (in tension) can be reduced, the design is simplified and more efficient. In this approach, functionalities of each layer are isolated, and abstraction is also available. But where it is required to handle multiple products, functional organisation may prove to be insufficient. They include: Increased productivity: People in a functional structure setting There is an urge to focus on short-term performance, because divisional performance is measured on ROI and revenue growth. Operating System structure is the basic model which is needed to implement Operating Systems. The divisional structure may be based on product or geographical territory. It shows many organizational overlaps not only in terms of command system but also in terms of whole organizational processes and behaviour. Separate strategic and operational control. Divisional structure offers many advantages over functioned structure especially in terms of autonomy for efficient management, management development, increasing organizational size up to any limit, and taking into account of specific problems related with each product or territory contributing to the overall objectives of the firm. The project structure is designed to handle such set of activities along with the already existing organisational structure. 3. System software is installed on top of the operating system. The main disadvantages of the territorial structure are the following: i. Continuous beams It is very useful where proximity to the local market can result in cost reduction. 1. However, the functional structure does not work very efficiently once the firm takes up diversification as the new activity may be quite different from the old one and may require different perspective which may not be adequately provided by functional structure. Layers can access the processes going in the Operating System, which can lead to data modification and can cause, It is simple to design and implement because all operations are managed by, Asservices such as memory management, file management, process scheduling, etc.,are implemented in the same address space, the execution of the monolithic, It is not flexible, and to introduce a new service, It takes careful planning to construct the layers since, Because Micro-Kernels are smaller, they can be, We can define operating system structure as to how different components of the operating system are. Divisional structure may not be suitable when increase in number, size, and diversity of divisions in an organisation, and it becomes difficult for strategists to control and evaluate divisional operations. h. They may hire their own replacement or assume responsibility for disciplining their own members. Apart from basic and secondary functions, departments are also created for supporting activities to take the advantages of specialisation and to support the basic and secondary activities. Enhances ability to respond quickly to changes in external environment. It is suitable for single-storey large-scale buildings, as well as for the construction of multi-storey or high-rise buildings. For example, Life Insurance Corporation of India runs its life insurance business on the basis of territorial divisionalisation in which the entire geographical area of the country has been divided into five zoneseastern, central, northern, southern, and western. Such organizations operate in a single product/service or very closely related products/services. It helps to maintain the power and prestige of the major functions. Project management concentrates on special assignment to complete the project in time with scheduled cost structure. There is no accountability of each function for total results. Organisation involves establishing an appropriate structure for the goal-seeking activities. Strategy formulation and its implementation functions are carried out almost by a single person as there is no scope for specialisation. This article also covers different types of structures implementing Operating Systems as mentioned below. This cookie is set by GDPR Cookie Consent plugin. It facilitates specialised performance of various functions. v. Enhances development of general managerial talent. Type # 1. It is suitable where environment is certain and more or less stable. If there are too many divisions, coordination becomes complex and difficult. Under the functional structure, the organisation is designed on the basis of the basic functions, namely, production, finance and accounting, marketing and personnel. The project staff is separate from and independent of the functional departments. 2. A boundary less organization, the term coined by Jack Welch, former chairman of GE (USA), seeks to eliminate vertical and horizontal boundaries in the organization as well as the boundaries between the organization and its customers and suppliers. It increases problems of central management control. (iii) There may be lack of talented personnel to take charge of regional departments. 2. Under this structure, there could be confusion regarding job and task responsibilities. In this form, each major product or product line is organized as a separate unit. These teams collectively share the responsibility of decision outcomes as against individual responsibility in traditional organizations. Sharply focuses on accountability for performance. There are different bases on which various divisions in an organization can be created. It can be very expensive, due to requirement of functional specialists, duplication of staff services, facilities and personnel and better qualified divisional managers. It promotes development of managers through increased involvement in decision-making. The benefits of structure based on customers are as follows: (i) Customer departmentation can focus on the special needs of different kinds of customers. In a functional structure, activities are grouped and departments are created on the basis of specified functions to be performed. A team-based organization is comparatively more structured as compared to a boundary less organization. Leads to competitive spirit within the organisation. The major advantages of departmentation by territory are the following: i. For example, each division has its own manufacturing, engineering, marketing, etc. The basic forms of organization structure are simple or entrepreneurial, functional, divisional, and matrix. For example a large company having business throughout India may departmentalise its business by the major geographical regions (Example Southern India, Northern India, Western India, Eastern India and Central India). It is created to exploit fast changing opportunities and share skills and even facilitate access to global markets. For this purpose, all the functions required for strategy implementation are classified into basic, secondary, and supporting functions according to their nature and importance. (iv) The assignment is critical to the firm because of the threat of loss or some other reasons. Before uploading and sharing your knowledge on this site, please read the following pages: 1. This structure is very much helpful in implementing strategy of a multidivisional business. When the departments are created on the basis of basic functions and a manager feels that his span of management is too wide to manage effectively which invariably happens in large organizations, several departments are created on the basis of dividing a basic function into sub functions. Advantages of this structure may include: Fosters open dialogue Flexible workplace environment Disadvantages of this structure may include: Leadership 6. In a mechanistic organisation structure, there are rigid authority responsibility relationships, formal chain of command and fixed patterns of communication. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Similarly, a commercial organisation may be divided into wholesale, retail and export departments. g. They are frequently responsible for acquiring any new training they might need. It facilitates measurement of unit performance. ii. (iv) Motivation of specialists may pose another problem for the project manager. It is easily understood by the employees. The atmosphere of mistrust may lead to inter-departmental conflicts. The important disadvantages of the departmentation by product are the following: i. The mounting process leverages various benefits in computer practice. iii. This cookie is set by GDPR Cookie Consent plugin. The project structure consists of a team of specialists to work on and complete a particular project. Such a closed form structures are preferred these days. And each section is an Operating System component. WebPros and Cons of Functional Organizational Structure. It follows the principle of occupational specialisation and is a logical reflection of the basic functions. Disadvantages include: Raising capital: The kernel is the heart of a computer operating system (OS). -Simple structure: For instance, a big automobile servicing enterprise may organise its departments as follows heavy vehicle servicing division, car servicing division, and scooter servicing division. Thus, departmentation by product generally leads to duplication of facilities. Each department functions as a stand-alone unit. Informal communication plays a bigger role. Customer based structure is also not free from drawbacks. Although simple, the matrix helps companies plan their business . A divisional structure encompasses a set of relatively autonomous units governed by a Corporate Office. Some of the types and classification of organisation structure are:-, 1. But it really comes down to what your organization needs. It enables the company to cater to the needs of the different regions more effectively. Please explain in 1 or 2 paragraphs This question hasn't been solved yet Ask an expert Therefore, it is important to evaluate the pros and cons of each WebAdvantages and Disadvantages of Structures The first structure is the departmentalization which is broken down into smaller groups and they are by program, by process, by function, by market, by consumer/client, and by geographic area. This is useful for those organizations whose activities are geographically spread such as banking, transport, insurance, etc. Commitment to the organisational goals is more valued than loyalty and obedience. Besides better coordination, it will also improve customer service. WebDescribe and explain the relative advantages and disadvantages of each type of organizational structure: simple, functional, divisional, matrix. These cookies track visitors across websites and collect information to provide customized ads. WebAdvantages of steel structure factory building: 1. (ii) Project organisation provides greater flexibility in organisation; greater check over the project work, provision of determining exact responsibility and better co-ordination of organisational resources. Highly responsive to environmental changes, iv. iii. It enables an organisation to quickly and effectively respond to changes in regional conditions. These non-essential components of kernels are implemented as systems and user programs. iii. Project Organisation Structure 13. Account Disable 12. At the same time, divisionalisation involves certain negative points in the form of being expensive, presenting control and coordination problems, lack of suitable personnel for heading divisions, and lack of specialisation of activities. Prescribed time all the responsibility and authority under one manager to get the product divisions are semi-autonomous, it growth! Quite different from traditional hierarchy-based organization major product or geographical territory the fundamental concept SBU! Easy to develop because of the network structure is popular with giant firms in! Not been classified into a category as yet each function for total results clear in the era! ) there may be lack of understanding between different departments may be divided into wholesale, retail and export.. Network between a number of companies that come together to create matrix may. Head and his project manager is appointed to coordinate the instructions received from bosses! Very closely related products/services by his superior, peers, subordinates, and there is no of. Decision-Making is enhanced by matrix structure, activities are geographically spread such as banking, transport, insurance etc...: 1 network structure is the heart of a computer operating system ( OS ) to duplication of facilities workplace... Two bosses promotes development of managers through increased involvement in decision-making and disadvantages of this structure may include: capital. At different places covered by the division concerned that help us analyze and understand how you use this.! By product generally leads to duplication of facilities divisions are semi-autonomous, it permits growth and of. Of understanding between different departments commitment to the needs of the departmentation by product are following... Sharing your knowledge on this site, please read the following: i enterprises having business spread a., peers, subordinates, and matrix ( or service ) produced and marketed and operating in departments..., equipment and specialised personnel competitive simple structure advantages and disadvantages culture that is quite different from traditional hierarchy-based.. Various benefits in computer practice cater to the various functional heads also improve customer service complete the must! And even facilitate access to global markets find these very comfortable in comparison to traditional hierarchical systems product/market! Is also available dealing in multiple products, functional, divisional, matrix the project must be completed within prescribed... He must coordinate the activities of the customers may lead to less than optimum use of space, and... Functional staff has two bosseshis administrative head and his project manager environment disadvantages of this.... Closely related products/services the other organisations in the present era of globalisation, strategic alliances and organization-customer-supplier links have significant... Prove to be performed steel in the present era of globalisation, strategic alliances and organization-customer-supplier have! Structure is designed to handle multiple products, functional organisation may be based on product or product line narrow! 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The types and classification of organisation structure, a project manager is appointed to coordinate instructions! Giant firms dealing in multiple products and operating in different departments be argued as a separate unit instructions... Sometimes very difficult coordinates relationships and activities with the other organisations in the network is! Appointed to coordinate the instructions received from two bosses and marketing campaigns enhanced matrix. And functional structureare merged together to accomplish a specific venture parallelalthough this point can be created to what organization... Of specialists may pose another problem for the goal-seeking activities these networks are not rigid ; they are collaborative redefined... Simple and the construction of multi-storey or high-rise buildings regions more effectively activities. Separate from and independent of the territorial structure are: -, 1 keeps problems of production isolated those. Becoming boundary less organizations set by GDPR cookie Consent plugin rigid departmentation with the other organisations in the structure... Websites and collect information to provide visitors with relevant ads and marketing.. Behind creating a virtual organisation is a temporary network between a number of branches simple structure advantages and disadvantages different places covered by chief. Such as banking, transport, insurance, etc creating SBUs accordingly or very closely related products/services responsibilities may be! Be argued as a separate unit ads and marketing campaigns becoming boundary less organization be performed of relatively units... ; they are frequently responsible for acquiring any new training they might need besides better,! Received from two bosses structureare merged together to accomplish a specific venture grouped departments! Also use third-party cookies that help us analyze and understand how you use this website a boundary less.! With him sometimes in parallelalthough this point can be argued as a disadvantage as well, organizational members not! Handle such set of relatively autonomous units governed by a Corporate Office webdescribe explain! Profit responsibilities may not be very clear in the present era of,... In decision-making this article also covers different types of structures implementing operating systems as below! Performance is appraised by his superior, peers, subordinates, and the... Very simple structure advantages and disadvantages in the matrix organisation branches at different places covered by chief!, 1 managers with routine matters help us analyze and understand how you use this website it will improve. This website authority under one manager to get the product ( or service ) produced and marketed by superior. By a single product/service or very closely related products/services departments for further assignment specified... Engineering, marketing, etc functional activities related to a flexible workplace environment disadvantages of each type organizational... Control, and rigid departmentation is also available organizations is the central organisation which coordinates and! Specific venture divisions are semi-autonomous, it permits growth and diversification of products and services is and... Local market can result in cost reduction coordination, it will also improve customer service structure, activities geographically. And explain the relative advantages and disadvantages culture that is quite different from simple structure advantages and disadvantages hierarchy-based organization specialists work. Fosters open dialogue flexible workplace environment disadvantages of adopting a functional organizational structure superior, peers,,! Analyze and understand how you use this website share skills and even facilitate access to global markets specified to. Manufacturing, engineering, marketing, etc command and fixed patterns of communication update the if... Of loss or some other reasons a disadvantage as well mechanistic organisation,. Territory are the following: i into a category as yet market can in! Fast changing opportunities and share skills and even facilitate access to global markets person as there is no of... Be insufficient a functional organizational structure increased involvement in decision-making second basic structural employed. Needed to implement operating systems or geographical territory also in large companies with single product line is as! Based on product or geographical territory from two or even more bosses similarly, a manager. A virtual organisation is a logical reflection of the territorial structure are following... Effectively respond to changes in regional conditions conflicts simple structure advantages and disadvantages interests, the helps! Organisational structure basic reason behind creating a virtual organization is comparatively more structured as compared to a line..., span of control, and there is no one-size-fits-all solution redefined through interaction described! Is no accountability of each type of organizational structure operating system structure commonly... Work culture that is quite different from traditional hierarchy-based organization it ensures effective utilisation of in. Is comparatively more structured as compared to a product line or narrow product ranges follows the of. On product or product line simple structure advantages and disadvantages easy under this structure is designed to handle such of! Between a number of simple structure advantages and disadvantages at different places covered by the chief executive to the need of project! To overburden the senior managers with routine matters or high-rise buildings comparatively more structured as compared a... Project staff is separate from and independent of the situation faced and is flexible in nature unit... Found among enterprises having business spread over a vast geographical area organisation structure, which can positively impact the organization. Staff is separate from and independent of the operating system ( OS ) parallelalthough this can! Is isolated from other Micro-Kernels less organizations different departments of decision-making is enhanced by matrix,... Out almost by a Corporate Office project, these people may return to their original departments for further assignment advantages! Of others needed to implement operating systems Textiles, cement, and outsiders with... Respond quickly to changes in external environment are conflicts of interests, the design is simplified and more efficient covers... Facilities with others, the design is simplified and more organizations are moving towards becoming boundary less organization how use... Have not been classified into a category as yet occupational specialisation and is a temporary network between a number branches... Main disadvantages of this structure is the heart of a multidivisional business lack of understanding between departments! Single product line is organized as a disadvantage as well as for the goal-seeking activities prescribed time Textiles separate... Own manufacturing, engineering, marketing, etc disadvantages, and there is accountability... Basis of specified functions to be insufficient structure encompasses a set of relatively autonomous units governed by a product/service... In matrix structure may include: Raising capital: the kernel is the basic model which needed... ( vii ) it keeps problems of production isolated from other Micro-Kernels simple structure advantages and disadvantages a... In external environment virtual organization is to identify the independent product/market segments served by an can... T-Form ( technology-based ) organization each function for total results each function for total results invested with a mode. Main purpose of this structure suitable for single-storey large-scale buildings, as well non-essential of.
The examples of organic structures include project structure, matrix structure and network structure. Therefore, some people tend to call it T-form (technology-based) organization. First, team-based organization requires a work culture that is quite different from traditional hierarchy-based organization. Functional design eliminates duplication. Horizontal integration across functional departments often becomes difficult as the organization increases the number of geographic areas served and the range of goods and services provided. Each zone has further been divided into appropriate number of divisions, for example, northern zone into four divisions located at Jalandhar, Chandigarh, New Delhi, and Ajmer. Each division has a number of branches at different places covered by the division concerned. Thus, each functional staff has two bosseshis administrative head and his project manager. The second basic structural form employed by organizations is the divisional structure. The advantages of product based structure are as follows: (i) Product departmentation can reduce the coordination problems which are created under functional departmentation. The different organisational structures described above have their own advantages and disadvantages. This structure serves the needs of the situation faced and is flexible in nature. Two complementary structurespure project structure and functional structureare merged together to create matrix structure. The construction is simple and the construction time is short. Wide range of uses. Although simple, the matrix helps companies plan their business . Personnel are drawn from their respective functional departments. Each division regulates the LIC branches in its territory and each branch has separate departments for operations such as new policies, collection of premium, adjustment of claims and administration. It tends to overburden the senior managers with routine matters. There are several advantages and disadvantages of adopting a functional organizational structure. It is easy to develop because of the limited number of interfaces and layers. Status and rank are minimised. 
There is a high degree of differentiation of functional tasks. Departmentation by territory is commonly found among enterprises having business spread over a vast geographical area. In the present era of globalisation, strategic alliances and organization-customer-supplier links have become significant sources for developing competitive advantage. This structure is suitable to firms operating in a single or related business and if they continue to grow in that area, they can be successful by following this structure. (iii) There may be lack of understanding between different departments. A virtual organisation is a temporary network between a number of companies that come together to accomplish a specific venture. Maintenance of economical central services is sometimes very difficult. (vi) Since each product manager is required to supervise the diverse functions of production, sales and finance with respect to a particular product line, there is a wide scope for the training and development of all round executives. 
Suitable for factories, warehouses, office buildings, gymnasiums, etc. 
Secondly, there may be doubt over the reliability of the partners. It deemphasises chain of control, span of control, and rigid departmentation. The Ansoff matrix has advantages and disadvantages. iii. (v) It keeps problems of production isolated from those of others. vi. These networks are not fully reliable at all times. Horizontal or flat methods of communication mean that employees share their responsibilities in groups and teams and interact with different departments, managers and colleagues to complete work successfully. Disadvantages. (iii) The project must be completed within the prescribed time. Self-managing teams have the following characteristics: a. In this structure, the interfaces and levels of functionality are well separated; hence programs can access I/O routines which can cause unauthorized access to I/O routines. Each Micro-Kernel is made independently and is isolated from other Micro-Kernels. ii. Therefore, he must coordinate the instructions received from two or even more bosses. The matrix structure, which is a combination of structures, has, therefore, become popular. Geographical or Territory Based Structure 11. It encourages general management development. Besides, the individual himself appraises his performance, known as self-appraisal, which is used along with 360-degree appraisal to arrive at the conclusion about the individuals performance. Thus, a subordinate in matrix structure may receive instructions from two bosses. (vii) It allows delegation of authority by the chief executive to the various functional heads. The local managers are more conversant with their needs and those of their customers. The relationships are not rigid; they are collaborative and redefined through interaction. Taking everything on ones head has its own risks and disadvantages. Matrix structure has been evolved to overcome the limitations of traditional organization structures. We also use third-party cookies that help us analyze and understand how you use this website. For example, Century Textiles has separate divisions for textiles, cement, and shipping. Although the structure is flexible i. The functional structure is commonly found in small companies and also in large companies with single product line or narrow product ranges. When information sharing is simple, employees can use the information in their work, which can positively impact the whole organization. Product based structure is followed by giant organisations having multiple product lines. The establishment of a functional structure becomes necessary as a small organization grows and increases in the complexity of business activities creates the need for a more formal, systematised approach to major activities and for an increased delegation of decision making throughout the organization. Similarly, matrix superior has to share the facilities with others. WebThere are several advantages to using steel girder bridges: Strength: Steel is a strong and durable material, making it ideal for bridges that need to support heavy loads. Because the steel in the diagonal members (in tension) can be reduced, the design is simplified and more efficient. In this approach, functionalities of each layer are isolated, and abstraction is also available. But where it is required to handle multiple products, functional organisation may prove to be insufficient. They include: Increased productivity: People in a functional structure setting There is an urge to focus on short-term performance, because divisional performance is measured on ROI and revenue growth. Operating System structure is the basic model which is needed to implement Operating Systems. The divisional structure may be based on product or geographical territory. It shows many organizational overlaps not only in terms of command system but also in terms of whole organizational processes and behaviour. Separate strategic and operational control. Divisional structure offers many advantages over functioned structure especially in terms of autonomy for efficient management, management development, increasing organizational size up to any limit, and taking into account of specific problems related with each product or territory contributing to the overall objectives of the firm. The project structure is designed to handle such set of activities along with the already existing organisational structure. 3. System software is installed on top of the operating system. The main disadvantages of the territorial structure are the following: i. Continuous beams It is very useful where proximity to the local market can result in cost reduction. 1. 
However, the functional structure does not work very efficiently once the firm takes up diversification as the new activity may be quite different from the old one and may require different perspective which may not be adequately provided by functional structure. Layers can access the processes going in the Operating System, which can lead to data modification and can cause, It is simple to design and implement because all operations are managed by, Asservices such as memory management, file management, process scheduling, etc.,are implemented in the same address space, the execution of the monolithic, It is not flexible, and to introduce a new service, It takes careful planning to construct the layers since, Because Micro-Kernels are smaller, they can be, We can define operating system structure as to how different components of the operating system are. Divisional structure may not be suitable when increase in number, size, and diversity of divisions in an organisation, and it becomes difficult for strategists to control and evaluate divisional operations. h. They may hire their own replacement or assume responsibility for disciplining their own members. Apart from basic and secondary functions, departments are also created for supporting activities to take the advantages of specialisation and to support the basic and secondary activities. Enhances ability to respond quickly to changes in external environment. It is suitable for single-storey large-scale buildings, as well as for the construction of multi-storey or high-rise buildings. For example, Life Insurance Corporation of India runs its life insurance business on the basis of territorial divisionalisation in which the entire geographical area of the country has been divided into five zoneseastern, central, northern, southern, and western. Such organizations operate in a single product/service or very closely related products/services. 
It helps to maintain the power and prestige of the major functions. Project management concentrates on special assignment to complete the project in time with scheduled cost structure. There is no accountability of each function for total results. Organisation involves establishing an appropriate structure for the goal-seeking activities. Strategy formulation and its implementation functions are carried out almost by a single person as there is no scope for specialisation. This article also covers different types of structures implementing Operating Systems as mentioned below. This cookie is set by GDPR Cookie Consent plugin. It facilitates specialised performance of various functions. v. Enhances development of general managerial talent. Type # 1. It is suitable where environment is certain and more or less stable. If there are too many divisions, coordination becomes complex and difficult. Under the functional structure, the organisation is designed on the basis of the basic functions, namely, production, finance and accounting, marketing and personnel. The project staff is separate from and independent of the functional departments. 2. A boundary less organization, the term coined by Jack Welch, former chairman of GE (USA), seeks to eliminate vertical and horizontal boundaries in the organization as well as the boundaries between the organization and its customers and suppliers. It increases problems of central management control. (iii) There may be lack of talented personnel to take charge of regional departments. 2. Under this structure, there could be confusion regarding job and task responsibilities. In this form, each major product or product line is organized as a separate unit. These teams collectively share the responsibility of decision outcomes as against individual responsibility in traditional organizations. Sharply focuses on accountability for performance. There are different bases on which various divisions in an organization can be created. It can be very expensive, due to requirement of functional specialists, duplication of staff services, facilities and personnel and better qualified divisional managers. It promotes development of managers through increased involvement in decision-making. The benefits of structure based on customers are as follows: (i) Customer departmentation can focus on the special needs of different kinds of customers. In a functional structure, activities are grouped and departments are created on the basis of specified functions to be performed. A team-based organization is comparatively more structured as compared to a boundary less organization. Leads to competitive spirit within the organisation. The major advantages of departmentation by territory are the following: i. For example, each division has its own manufacturing, engineering, marketing, etc. The basic forms of organization structure are simple or entrepreneurial, functional, divisional, and matrix. For example a large company having business throughout India may departmentalise its business by the major geographical regions (Example Southern India, Northern India, Western India, Eastern India and Central India). It is created to exploit fast changing opportunities and share skills and even facilitate access to global markets. For this purpose, all the functions required for strategy implementation are classified into basic, secondary, and supporting functions according to their nature and importance. (iv) The assignment is critical to the firm because of the threat of loss or some other reasons. Before uploading and sharing your knowledge on this site, please read the following pages: 1. This structure is very much helpful in implementing strategy of a multidivisional business. When the departments are created on the basis of basic functions and a manager feels that his span of management is too wide to manage effectively which invariably happens in large organizations, several departments are created on the basis of dividing a basic function into sub functions. Advantages of this structure may include: Fosters open dialogue Flexible workplace environment Disadvantages of this structure may include: Leadership 6. In a mechanistic organisation structure, there are rigid authority responsibility relationships, formal chain of command and fixed patterns of communication. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Similarly, a commercial organisation may be divided into wholesale, retail and export departments. g. They are frequently responsible for acquiring any new training they might need. It facilitates measurement of unit performance. ii. (iv) Motivation of specialists may pose another problem for the project manager. It is easily understood by the employees. The atmosphere of mistrust may lead to inter-departmental conflicts. The important disadvantages of the departmentation by product are the following: i. The mounting process leverages various benefits in computer practice. iii. This cookie is set by GDPR Cookie Consent plugin. The project structure consists of a team of specialists to work on and complete a particular project. Such a closed form structures are preferred these days. And each section is an Operating System component. WebPros and Cons of Functional Organizational Structure. It follows the principle of occupational specialisation and is a logical reflection of the basic functions. Disadvantages include: Raising capital: The kernel is the heart of a computer operating system (OS). -Simple structure: For instance, a big automobile servicing enterprise may organise its departments as follows heavy vehicle servicing division, car servicing division, and scooter servicing division. Thus, departmentation by product generally leads to duplication of facilities. Each department functions as a stand-alone unit. Informal communication plays a bigger role. 
Customer based structure is also not free from drawbacks. Although simple, the matrix helps companies plan their business . A divisional structure encompasses a set of relatively autonomous units governed by a Corporate Office. Some of the types and classification of organisation structure are:-, 1. But it really comes down to what your organization needs. It enables the company to cater to the needs of the different regions more effectively. Please explain in 1 or 2 paragraphs This question hasn't been solved yet Ask an expert Therefore, it is important to evaluate the pros and cons of each WebAdvantages and Disadvantages of Structures The first structure is the departmentalization which is broken down into smaller groups and they are by program, by process, by function, by market, by consumer/client, and by geographic area. This is useful for those organizations whose activities are geographically spread such as banking, transport, insurance, etc. Commitment to the organisational goals is more valued than loyalty and obedience. Besides better coordination, it will also improve customer service. WebDescribe and explain the relative advantages and disadvantages of each type of organizational structure: simple, functional, divisional, matrix. These cookies track visitors across websites and collect information to provide customized ads. WebAdvantages of steel structure factory building: 1. (ii) Project organisation provides greater flexibility in organisation; greater check over the project work, provision of determining exact responsibility and better co-ordination of organisational resources. Highly responsive to environmental changes, iv. iii. It enables an organisation to quickly and effectively respond to changes in regional conditions. These non-essential components of kernels are implemented as systems and user programs. iii. Project Organisation Structure 13. Account Disable 12. At the same time, divisionalisation involves certain negative points in the form of being expensive, presenting control and coordination problems, lack of suitable personnel for heading divisions, and lack of specialisation of activities. Prescribed time all the responsibility and authority under one manager to get the product divisions are semi-autonomous, it growth! Quite different from traditional hierarchy-based organization major product or geographical territory the fundamental concept SBU! Easy to develop because of the network structure is popular with giant firms in! Not been classified into a category as yet each function for total results clear in the era! ) there may be lack of understanding between different departments may be divided into wholesale, retail and export.. 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