Disadvantages of Divisional Structures
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1. By definition, it encourages competition between the subsidiaries for
corporate-level resources which may result in the best outcomes for the
business.
a. top management is not always clear on how much authority and control
to give to division managers.
b. may be a lack of policy consistency between divisions and the potential
for increased costs due to duplication functions.
c. overall company often finds it difficult to maintain an overall corporate
image.
d. Leaders in company HQ can be too hands-off to maintain the desired
levels of consistency across the various divisions.
,1. Disadvantages of Matrix Structures
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b. Two-boss problems, leaving project members caught in the middle
c. Project members playing bosses against one another
d. Increases organizational complexity
e. Requirement for high degree of cooperation between functional and
project management
f. Potential for conflicting management directives
g. Difficulty of establishing priorities suiting both functional and project
management
h. Possible slowdowns in management reaction to events when two
structures required for solution
i. Possible structural collapse in "crunch time"
j. Increase in management overhead costs
functional structure strengths and weaknesses
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Strength: Specialization
1. companies use a functional organizational structure, people with similar
knowledge and skills are grouped together. This makes it possible for
employees to become specialists in their field.
Strength Productivity
1. Specialization leads to operational efficiencies and enhances productivity
levels.
2. Because of their expertise, workers with specialized skills can perform
tasks quickly, efficiently and with more confidence, thus reducing the
occurrence of work-related mistakes.
3. The main goal of functional structures in organizations is to bring the
entire human and informational resources together to meet the
organization’s goal.
Weakness: Management Issues
, 1. Communication in organizations with functional organizational structures
can be rigid because of the standardized ways of operation and the high
degree of formalization.
2. decision-making process slow and inflexible.
3. Lack of innovation and restricted views of organizational goals, along
with too much focus
Weakness: Unit Coordination
1. their level of cooperation with each other is sometimes compromised.
2. groups may have difficulty working well with each other as they may be
territorial.
ultimately can bring down production levels overall, and the company-
wide employee commitment toward meeting organizational goals
Types of organizational structure in which everyone in the organization reports to a
single boss
a. divisional organizational hierarchy
b. decentralize organizational structure
c. matrix structure
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c. matrix structure
Organizational structure defines
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1. the arrangement of interaction between resources, people and tasks
within an organization.
a. typically represented in the form of a chart, with roles, titles and
positions listed in a cascading fashion.
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1. By definition, it encourages competition between the subsidiaries for
corporate-level resources which may result in the best outcomes for the
business.
a. top management is not always clear on how much authority and control
to give to division managers.
b. may be a lack of policy consistency between divisions and the potential
for increased costs due to duplication functions.
c. overall company often finds it difficult to maintain an overall corporate
image.
d. Leaders in company HQ can be too hands-off to maintain the desired
levels of consistency across the various divisions.
,1. Disadvantages of Matrix Structures
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b. Two-boss problems, leaving project members caught in the middle
c. Project members playing bosses against one another
d. Increases organizational complexity
e. Requirement for high degree of cooperation between functional and
project management
f. Potential for conflicting management directives
g. Difficulty of establishing priorities suiting both functional and project
management
h. Possible slowdowns in management reaction to events when two
structures required for solution
i. Possible structural collapse in "crunch time"
j. Increase in management overhead costs
functional structure strengths and weaknesses
Give this one a try later!
Strength: Specialization
1. companies use a functional organizational structure, people with similar
knowledge and skills are grouped together. This makes it possible for
employees to become specialists in their field.
Strength Productivity
1. Specialization leads to operational efficiencies and enhances productivity
levels.
2. Because of their expertise, workers with specialized skills can perform
tasks quickly, efficiently and with more confidence, thus reducing the
occurrence of work-related mistakes.
3. The main goal of functional structures in organizations is to bring the
entire human and informational resources together to meet the
organization’s goal.
Weakness: Management Issues
, 1. Communication in organizations with functional organizational structures
can be rigid because of the standardized ways of operation and the high
degree of formalization.
2. decision-making process slow and inflexible.
3. Lack of innovation and restricted views of organizational goals, along
with too much focus
Weakness: Unit Coordination
1. their level of cooperation with each other is sometimes compromised.
2. groups may have difficulty working well with each other as they may be
territorial.
ultimately can bring down production levels overall, and the company-
wide employee commitment toward meeting organizational goals
Types of organizational structure in which everyone in the organization reports to a
single boss
a. divisional organizational hierarchy
b. decentralize organizational structure
c. matrix structure
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c. matrix structure
Organizational structure defines
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1. the arrangement of interaction between resources, people and tasks
within an organization.
a. typically represented in the form of a chart, with roles, titles and
positions listed in a cascading fashion.
