simple structure advantages and disadvantages

(iii) Product departmentation may sometimes lead to difficulties in coordination of certain specialised activities like marketing, financing and accounting. Uploader Agreement. Recently, in telecommunication sector in India, many virtual organizations have been created to provide different services. Functional structure is created by grouping the activities on the basis of functions required for implementing the strategy. Moreover, our purpose here is to highlight the mission of the organizational structure, show its importance, diversification and when each type can be used. But where it is required to handle multiple products, functional organisation may prove to be insufficient. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Organization structure is the pattern in which various organizational activities are divided and assigned among positions, groups, departments, and divisions and the coordinating mechanism among these activities to achieve organizational objectives. This approach helps reduce errors and lowers costs. Second, creating self-managing teams is a long-drawn process full of anxiety and tension. It utilises downward, upward and lateral communication networks for greater efficiency and quick decision-making. These flat organizational structure advantages and disadvantages show us that when it is implemented with a clear plan, it can be successful. Structures that allow for better communication. This structure is popular with giant firms dealing in multiple products and operating in different geographical regions. Corporate office may become unaware of key developments that could impact on the corporation. Data structures make it easier for us to handle data. Intel was not happy about that venture and decided not to participate in any such venture. Assigns undertakings and obligations related with singular employments. Growth methodology: includes development in this way presenting the component of multifaceted nature and vulnerability. Further, many disadvantages can be overcome if suitable steps are taken well in advance. The project structure is designed to handle such set of activities along with the already existing organisational structure. Centralization is an organizational structure that gives the ability of decision-making responsibilities to higher management. It is a temporary structure designed under the following situations: (i) The assignment presents a unique, infrequent and unfamiliar challenge to the business firm. Moreover, there may be conflicts among the specialists quite often because of their different orientations. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Warren Truss Advantages And Disadvantages Advantages Of Warren Truss. Thus, the members cannot communicate across all levels of the organisation to obtain information. Many of these problems can be overcome through sharp focus on tasks and responsibilities of corporate and divisional management, measurement of performance of divisions, long-term policy for performance and incentives, creating more autonomy and decentralisation of authority, and finally the explicit strategies for both the firm as a whole and its various divisions. v. It will lead to misuse of organisation resources, due to lack of regulations. Data structure provides effective and efficient processing of small as well as large amount of data. i. It may create and confusion conflict, due to improper understanding about employees responsibilities. iii. The relationships are not rigid; they are collaborative and redefined through interaction. Weba piece of cake a piece of old tackle a pushover as easy as ABC as easy as falling off a log as easy as pie a snack a snap a snip child's play duck soup easy-peasy kids' stuff money for jam money for old rope no sweat easy to do cream puff more For Sheldon Cooper, adhering to social constructs was not simple . Adjective Easy to understand In multi-product or multi-geographical area companies, divisions are created in the form of various strategic business units (SBUs). iv. For instance, a financing employee may report to financial manager, but at the same time a project may arise studying a budget, then this employee should report to the project manager as well. Based on this concept, virtual organization has been defined as follows Virtual Corporation is a temporary network of independent companiessupplies, customers, even erstwhile rivalslinked by information technology to share skills, costs, and access to one anothers markets. The advantages of matrix organizational structure. 2022 Mar 17 [cited 2023 Jan 18]. Therefore, some people tend to call it T-form (technology-based) organization. iii. The work culture gives an identity to the organization. An Organization structure helps in: Ineffectively structured organizations discover that critical deadlines are not met since there were not adequate human resources in each department to achieve all parts of a given assignment, or because it was not clear whose obligation the project was. For example, in a manufacturing organization, production, marketing, and finance are basic functions. This is being applied to various fields of activities because of pressure for dual focus, pressure for high information processing, and pressure for shared resources. Number of employees in such organizations tends to be quite low. The simple structure becomes inadequate as the business grows. The departmentation by product places all the responsibility and authority under one manager to get the product (or service) produced and marketed. Advantages of Queue: A large amount of data can be managed efficiently with ease. Virtual or Network Organisation 14. though there is no bar on small companies to create such organisations. Disclaimer 8. This form has been used by several U.S. multinational corporations whose manufacturing operations require low-cost labour that can best be utilized by contracting with foreign suppliers. Network organisation in suitable for all endeavours which require high flexibility to respond quickly to changing environment. The divisional structure is not without limitations. In this form, each major product or product line is organized as a separate unit. However, it is not free from shortcomings. It is suitable where environment is certain and more or less stable. d. They often create their own schedules and review their performance as a group. C)wCYP.TwslMK?yir~?_9:yizMX#Vw}Y}v~e}!6?_=}h[+|q]*S5z~ix:?EVF ?$d Two complementary structurespure project structure and functional structureare merged together to create matrix structure. The basic difference between a team and a group is in three contexts- job categoriesgroup has many narrow job categories and team has one or two broad categories; authoritygroup is directly controlled by the immediate superior and team has its own control mechanism; and reward systemreward in group system depends on individual performance and seniority and reward in team system is based on team performance and individual breadth of skills. Organizational structure characterizes a framework that speaks to certain activities including different assignments allocation, role definition, duties allocation, coordination and supervision coordinated towards the accomplishment of the common objective, mission and vision of the organization. Acts as a point of view through which individual can see their association and its condition. Similarly, matrix superior has to share the facilities with others. iii. Each division caters to different customers and has different types of competition. Enhances ability to respond quickly to changes in external environment. There are many advantages to having a simple structured organization, some of which include: Increased leader control With no managers organizing work between the employees and a single leader, the owner of the organization has complete control iv. (iii) There may be lack of talented personnel to take charge of regional departments. The different organisational structures described above have their own advantages and disadvantages. The following are the importance of organizational structure: According to a study done by (n, 2018) there are 4 types: It is based on dividing the company into smaller groups with niche tasks or role, its similar to bureaucratic. ii. WebAdvantages of Organisation Structure: Merits of having a well-designed organisation structure are as follows: 1. WebCompare and contrast them and describe the advantages and disadvantages of the two that you choose. This structure serves the needs of the situation faced and is flexible in nature. It can be tailored to meet the requirements of the particular project. Later, many organizations have moved from these bases to create divisions on the basis of strategic business units. It facilitates strategy implementation by improving coordination between similar divisions and making accountability to different business units. Each individual has a job description that outlines obligations, and each job occupies its own position on the company organization chart. Territorial departmentation has the following advantages: (i) It leads to the benefits of local operations. List of Advantages of a Flat Organizational Structure 1. They may compete with each other in certain areas. Boundary less organizations use computer networks extensively. If such a culture is not established, team-based organization tends to perform poorer than hierarchy-based organization. Flatarchy structure is a result of mixing functional and flat structures. Allows new business and new products to be added easily. In a decentralized structure, the energetic drive is appropriated and the workplaces and divisions may have different degrees of independence. Committee Organisational Structure Features: (a) Formed for managing certain problems/situations. Thus, the process of functional differentiation may continue through successive levels in the hierarchy. WebDivisional structure has some advantages: i. Upon completion of the project, these people may return to their original departments for further assignment. ii. 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.

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