simple structure advantages and disadvantages

to bring their resources and capabilities together. This structure improves communication across the business. The two traditional bases are product and territory. 1. In addition to vertical communication, lateral and horizontal communications are quite common. v. Enhances development of general managerial talent. Retrieved from Chron: https://smallbusiness.chron.com/organizational-structure-important-3793.html, Juneja, P. (2015). It utilises downward, upward and lateral communication networks for greater efficiency and quick decision-making. vi. WebWikipedia began as a related project for Nupedia.Nupedia was a free English-language online encyclopedia project. Retrieved from Management Study Guide: https://www.managementstudyguide.com/importance-of-organization-culture.htm, LinkedIn. In India, several companies like DCM, Gwalior Rayons, Century Mills and Voltas follow divisional structure to organise their operations. Multi-product organizations use this as basis for divisionalisation. Strategic Business Unit (SBU) Structure 5. iv. It is not suitable for enterprises with very diverse lines of businesses. 2. Each unit is relatively self-contained in that it has the resources to operate independently of other divisions. It does not encourage development of future managers. When it is used, the organization is departmentalized on the basis of functions. Whenever these conditions exist, use of matrix structure is beneficial. Departmentation by customer may be followed in enterprises engaged in providing specialised services to different classes of customers. viii. Leads to competitive spirit within the organisation. Two complementary structurespure project structure and functional structureare merged together to create matrix structure. May divert the owner from strategic decisions to day-to-day operating decisions. WebSee definition of simple on Dictionary.com adj. WebThere are several advantages of the regional divisional structure. In this form, the organization is divided into several fairly autonomous units. 2. Divisional managers can concentrate on responsible area and can improve performance. It is appropriate when each product is relatively complex and a great deal of capital is required for each product. Many educational institutions usually follow this type of departmentation. The concentration camps were the prisoners worst nightmare, involving death, hard labor, and Introduction In todays globalized world business and management is developing dramatically around the world and most people always want to achieve higher goals in various ways. These networks may include Internet, extranet, and intranet. Thus, one can see marketing, materials management, production, finance and accounting, personnel and maintenance departments in the functional design of a company engaged in manufacturing. Found in laboratories both large and small, as well as schools and colleges, they are a simple and elegant solution that helps scientists peer into the microscopic world and reveal structures invisible to the naked eye. The main purpose of this structure is to reduce the dead load. The major disadvantages of the functional structure are the following: i. Websimple 2 of 2 noun 1 a : a person of humble birth : commoner thought very little of anybody, simples or gentry Virginia Woolf b (1) : a rude or credulous person : ignoramus (2) : Career families, or career-graded structures, resemble In fact, most of the companies in information technology sector which are engaged in development of software for different purposes and for different customer segments have adopted this approach. Advantages There becomes reduced personal responsibility for any business debts incurred Legal liability also becomes reduced since a company is a separate legal entity from you as an individual Company tax rates are lower compared to higher marginal tax rates It can be much easier to raise finance and capital to grow and expand (ii) Staff officers may resent their lack of authority. Allows new business and new products to be added easily. We are here 24/7 to write your paper in as fast as 3 hours. Companies need quick decisions when operating in a dynamic business environment. This structure is very much helpful in implementing strategy of a multidivisional business. This is appropriate specially when each product is relatively complex and large amount of capital is required for each product. Functional structure lacks responsiveness necessary to cope with new and rapidly changing work requirements. iii. WebAdvantages. Thus, the members cannot communicate across all levels of the organisation to obtain information. Given below are important advantages of data structure: Data structure helps in efficient storage of data in the storage device. However, such a structure is not suitable for large organizations. though there is no bar on small companies to create such organisations. v. Retains functional specialisation in each SBU. Importance of Organization Culture. Geographical or Territory Based Structure, Essays, Research Papers and Articles on Business Management, Organisational Structure: Functional Structure and Divisional Structure, Designing the Project Organisation Structure: 2 Forms, Matrix Organisation: Concept, Advantages and Limitations, Types of Organisation: Advantages & Disadvantages | Functions | Management, International Human Resource Management: Meaning, Need, Challenges and Issues, Types and Classification of Organisation Structure (with Advantages and Disadvantages). The nature of the organisational structure depends on a number of factors like the size of the enterprise, objectives of the enterprise, nature of the business, marketing characteristics, social factors, etc. The major characteristics of a boundary less organization are as follows: i. Though some of these problems may be overcome by installing appropriate security devices, computer networks do not remain fully safe. These flat organizational structure advantages and disadvantages show us that when it is implemented with a clear plan, it can be successful. (2013, October 4). (iii) The project must be completed within the prescribed time. They can adapt and respond to the local situations with speed and accuracy. Information about projects flows across business functions through cross-functional teams and is not locked in the hands of the project manager and his team. Disadvantage: Segregation. Therefore, organizational members do not find these very comfortable in comparison to traditional hierarchical systems. 8. The major advantages of the functional type of organisation are the following: i. 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. vii. (v) The departments based on territories can function as autonomous units. Growth methodology: includes development in this way presenting the component of multifaceted nature and vulnerability. Organizational structure is critical for any developing company to supply direction and clarity on particular human resource issues, such as managerial authority. A major size of association may build the number of utilitarian divisions, number of administrative levels, and number of representatives with broadened duties. vi. Mechanistic and Organic Structure. As such, there is always a lack of proper coordination and control. It may be the wave of the future for organisations to capitalize on certain types of ventures or projects. ii. These networks are not fully reliable at all times. Product Based Structure 10. It enables an organisation to quickly and effectively respond to changes in regional conditions. 5. Each division caters to different customers and has different types of competition. The organization culture brings all the employees on a common platform. Provides greater decentralisation of authority. This structure is a hybrid type used in startups and small companies. Departmentation by territory is commonly found among enterprises having business spread over a vast geographical area. vi. 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. If the firm decides to add some new business, the basic question is how to add it because it may mean adding additional functional structure to the firm as the new business cannot easily be absorbed by the old structure. The advantages of product based structure are as follows: (i) Product departmentation can reduce the coordination problems which are created under functional departmentation. (iv) It is easier to evaluate and compare the performance of various product divisions. Provides good training ground for strategic managers. Staff experts many provide line officers with expert advice, such as dealing with certain technologies. Communication is one of the preeminent compelling gadgets an organization must work with, and communication with respect to the flow of information and the structure of the company can offer assistance to decrease confuse and streamline the method. Coordination and control processes tend to be tightly structured. Coordination and control take place through reciprocal adjustments among the members. ii. It facilitates measurement of unit performance. Learn more. Nupedia was Data were gathered through grammaticality judgment and translation tasks. WebWin Win! Innovation: Technology is a mix of apparatuses, procedures and know how and impacts hierarchical structure. The activities of the individuals and the groups will become Highly responsive to environmental changes, iv. iii. According to the contingent theorists, the structure of an organisation generally falls into one of two designs, namely: According to Bums and Stalker, Mechanistic structure is one that is highly centralised and has the common elements of bureaucracy. It lays emphasis on formal authority and communication patterns. The problems emerge because of the following reasons: i. #@[[}w4. 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. Further, in large organizations, the basic organization structure may be supported by other forms for performing various activities like team-based organization, virtual organization, and boundary less organization. iv. (iii) There may be lack of understanding between different departments. Offer assistance on an issue can come from anyplace inside the company. Boundary less organizations are better equipped to manage these features. It may become uneconomical where full use cannot be made of the specialised skills and equipment of each department. 3. When fully operational, the boundary less organization also breaks down barriers to external constituents such as customers, suppliers, regulators, and others with whom the organization deals, by linking them to the organization. Essay Service Examples Business Organizational Structure. A team-based organization is comparatively more structured as compared to a boundary less organization. i. The project structure is designed to handle such set of activities along with the already existing organisational structure. Some of the disadvantages of functional organizational structures include: Hindered decision-making: F ormal organizational structures ]ypically require employees to seek approval from management and other authority figures before making decisions. However, it is very easy to create a static webpage on your own. Other advantages of the matrix structure are: Effective flow of information. Divisional structure based on territories served. 1. Geographical structure is followed in case of service organisations which have offices in different regions or geographical areas. Role of the group Vice President is often ambiguous. iv. However, management scholars have divided opinions over the effectiveness of virtual organizations because of the kind of trust that is required in creating such organizations. }rGcJ1h%1Ipht]P/`[t"S%73z.0bDw[ee=i~{`h0[wG97\7am97lQss,[nWO Thus, a subordinate in matrix structure may receive instructions from two bosses. It helps with arranging works out of the portion parts so as to empower the affirmation of the goals of the affiliation. Besides, functional structure suffers from usual line and staff conflicts, usual interdepartmental conflicts, and other weaknesses emerging from such structure. The product requires different type of efforts as compared to others in terms of marketing and/or production. The managers in the central organisation spend most of their time coordinating and controlling external relations. i. It follows the principle of occupational specialisation and is a logical reflection of the basic functions.

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