SNCOA LDR-301S Mod 1 Lesson 2 Leading Organizations
Org Hierarchy And Structure
functional structure strengths and weaknesses
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
define organizational structure
An organizational structure model functions as the blueprint of a company's employees and job titles
Identifying types of Organizational Hierarchy Structure
flat, mid-sized or tall
Flat Structures
1. have very few echelons or tiers in a company with a flat organizational structure.
many small companies have flat organizational structures because of the lack of middle management.
, The president of the company may employ just a few managers and clerical workers until the
organization grows.
Mid size and larger companies tend to use a _______________ structure,
a. functional organizational Structure
where technologies, people and tasks are divided into separate functional groups such as finance,
operations, marketing, human resources
b. each group works independently of the others.
c. Companies that use functional organizational hierarchy structures split their departments into
functional areas.
1. accounting, finance, engineering, and marketing
Companies that use a product organizational hierarchy structure.....
divide departments by product categories.
i. Department stores and retailers use a product organizational structure.
1. example, an executive, such as the vice president of men's clothing, may report to the president.
functional organizational hierarchy structures have....
vice presidents, directors, and managers of marketing, for example, instead of product-oriented titles.
Benefits of a product organizational hierarchy structure
employees can specialize in a particular product line.
1. specialization fosters the production and the distribution of all products.
2. can be particularly useful when product quality is essential.
.
Companies that use functional organizational hierarchy structures
efficiently group employees by knowledge, skills and resources
Organizational Hierarchy Disadvantages
1. duplication of resources
a. Example, the housewares, sporting goods and men's clothing departments in a retail chain may
require separate marketing managers. Three marketing managers may not be practical and can drive up
labor costs.
2. May have difficulty coordinating activities with other departments.
For example, a product manager in an electronics company may not know what engineering is doing to
correct a certain product defect. Functionally oriented departments may also vie for budget money
What is Divisional Org Structure?
Org Hierarchy And Structure
functional structure strengths and weaknesses
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
define organizational structure
An organizational structure model functions as the blueprint of a company's employees and job titles
Identifying types of Organizational Hierarchy Structure
flat, mid-sized or tall
Flat Structures
1. have very few echelons or tiers in a company with a flat organizational structure.
many small companies have flat organizational structures because of the lack of middle management.
, The president of the company may employ just a few managers and clerical workers until the
organization grows.
Mid size and larger companies tend to use a _______________ structure,
a. functional organizational Structure
where technologies, people and tasks are divided into separate functional groups such as finance,
operations, marketing, human resources
b. each group works independently of the others.
c. Companies that use functional organizational hierarchy structures split their departments into
functional areas.
1. accounting, finance, engineering, and marketing
Companies that use a product organizational hierarchy structure.....
divide departments by product categories.
i. Department stores and retailers use a product organizational structure.
1. example, an executive, such as the vice president of men's clothing, may report to the president.
functional organizational hierarchy structures have....
vice presidents, directors, and managers of marketing, for example, instead of product-oriented titles.
Benefits of a product organizational hierarchy structure
employees can specialize in a particular product line.
1. specialization fosters the production and the distribution of all products.
2. can be particularly useful when product quality is essential.
.
Companies that use functional organizational hierarchy structures
efficiently group employees by knowledge, skills and resources
Organizational Hierarchy Disadvantages
1. duplication of resources
a. Example, the housewares, sporting goods and men's clothing departments in a retail chain may
require separate marketing managers. Three marketing managers may not be practical and can drive up
labor costs.
2. May have difficulty coordinating activities with other departments.
For example, a product manager in an electronics company may not know what engineering is doing to
correct a certain product defect. Functionally oriented departments may also vie for budget money
What is Divisional Org Structure?
