WebDisadvantages: (i) Conflict between line and staff may still arise. Why Is Organizational Structure Important? 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. i. 3. Therefore, he must coordinate the instructions received from two or even more bosses. 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. Its applied in GE (General Electric Company) that contains aviation, transportation, currents digital and renewable energy departments. Thus, what is suitable for one business may not be suitable for a similar unit, but there are successful firms in a given industry tend to design structure in a similar way. In a functional structure, activities are grouped and departments are created on the basis of specified functions to be performed. 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. In the boundary less organization, vertical boundaries are removed through flattening of organizational hierarchy. Geographical or Territory Based Structure 11. This is the reason why more and more organizations are moving towards becoming boundary less organizations. Helps to maintain an intimate relationship with everybody in the organisation. (iii) It leads to specialisation of physical facilities on the basis of products which results in economy. (ii) It employs personnel with special abilities for meeting different customer requirements. The first product of Apple was the Apple I (Deffree, 2019). It is created to exploit fast changing opportunities and share skills and even facilitate access to global markets. There is no potential for future development. The thickness of these structures is very less as compared to its width and length. 1. However like every other thing in this world, data structure has its own advantages and disadvantages. We are going to focus on the advantages and disadvantages of using data structure. Data structure helps in efficient storage of data in the storage device. Data structure usage provides convenience while retrieving the data from storage device. Boundary less organizations are better equipped to manage these features. Secondly, there may be doubt over the reliability of the partners. But if a company is providing services in different regions, it would follow geographical or territory based structure. All replies. ii. However, such a structure is not suitable for large organizations. Follow the below steps to create a They provide organisations with both freedom and control, whilst still enabling transparency and progression for employees. Functionalisation may also go a step further. iii. The local managers are more conversant with their needs and those of their customers. It may sometimes cause fragmentation and duplication of functions. It utilises downward, upward and lateral communication networks for greater efficiency and quick decision-making. ii. SBU concept was evolved by General Electric Company (GEC) of USA to manage its multi-product business. An owner might become swamped with work, if he has to approve every decision at a High cost of operation prevents the small companies from adopting this type of structure. In this study we aimed to show that the number of organizational structures may vary from one perspective to another, the definition as well, but the mission and the function of these structures are the same. iii. There are rigid hierarchical relationships in the organisation. Provides good training ground for strategic managers. Content Guidelines 2. Structures that allow for better communication. However, it is not free from shortcomings. Apple was located in Cupertino, California. i. Organic structure represents low horizontal differentiation, low formalization, free communication, and participation by low-level members in decision-making. For this purpose, all the functions required for strategy implementation are classified into basic, secondary, and supporting functions according to their nature and importance. Functional structure is helpful up to a certain limit of expansion and growth. In other words, an organization is known by its culture. Divisional structure is similar to dividing an organization into several smaller organizations but it is not quite the same, since each smaller organization is not completely independent. It is a set of planned relationships between groups of related functions and between physical factors and personnel required for the achievement of organisational goals. The second basic structural form employed by organizations is the divisional structure. Each unit is directly accountable to the organization. There is no single organisation structure or design that is suitable for a given strategy. The structure of an organisation is generally shown on an organisation chart or a job-task pyramid. A functional design may be effective when an organization has a narrow product line, competes in a stable environment, pursues a low-cost or focused business strategy, and does not have to respond to the pressures of serving difficult types of customers. Laborers back in affiliation increase their support and move forward their will to work. 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. Complex and markedly different activities require faster decision making because time factor is of prime importance. Committee Organisational Structure Features: (a) Formed for managing certain problems/situations. (v) Attempts to enforce uniform marketing and personnel policies in all the regional units may be contrary to the local needs of some units. Sharply focuses on accountability for performance. An organisations growth makes structure complex. Although the prisoners faced chaos and destruction in the concentration camps, the camps themselves were relatively organized. Low-cost but efficient information technology has also facilitated this process. 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. The managers in the central organisation spend most of their time coordinating and controlling external relations. Warren Truss Advantages And Disadvantages Advantages Of Warren Truss. The project staff is separate from and independent of the functional departments. It is one thing to make a compelling stream of data, and it is another thing to ensure that the data is being fittingly gotten and informational are being carried out. For example, a company may have three divisions to manage textiles, cement and shipping. It Is Cost Efficient As mentioned, in this organizational structure, there are fewer (or no) manager layers between the executive and the staff. though product lines can be added and dropped easily without dislocating the existing operations. Thus, the process of functional differentiation may continue through successive levels in the hierarchy. Therefore, there is direct interaction between those who manage and those who are managed. Staff experts many provide line officers with expert advice, such as dealing with certain technologies. It has broadened memory access times, for example, page table query. Various O/S are accessible in open source, for example, Unix/Linux. Arranging the structure guarantees there are sufficient human resources with the proper aptitudes to achieve the companys objectives, and ensures that duties are clearly characterized. Loyalty to the concern and obedience to superiors is highly insisted upon. Second, creating self-managing teams is a long-drawn process full of anxiety and tension. Shell type structure construction was as old as 1920s. WebCompare and contrast them and describe the advantages and disadvantages of the two that you choose. 7. Acts as a point of view through which individual can see their association and its condition. N{6[(b+-lCe[n;V\7j0 Since the project manager is wholly responsible for project results, he places more emphasis on efficient control, better customer relations, and uses his initiative and dynamism for the successful completion of project. They may compete with each other in certain areas. 2023 EduBirdie.com. In boundary less organizations, functional departments are replaced by cross-functional teams and organising activities around processes. It is a temporary structure designed under the following situations: (i) The assignment presents a unique, infrequent and unfamiliar challenge to the business firm. In my paper I am writing about the Drug Enforcement Administration and the importance of this agency and the difference it has made within our nation.to know this agency is dedicated to putting an end to drugs in America. Product structure can also help your business: Product organisational structure does have certain disadvantages, including being difficult to scale and (ii) It allows giving balanced weightage to the basic functions on which the survival of a firm depends. ii. Retrieved from Chron: https://smallbusiness.chron.com/organizational-structure-important-3793.html, Juneja, P. (2015). (iv) Decisions are delayed where decision-making involves two or more departments. It shows the authority and responsibility relationships between various positions in the organisation. This may lead to decrease in profits even, when there is increase in sales. For instance, a big automobile servicing enterprise may organise its departments as follows heavy vehicle servicing division, car servicing division, and scooter servicing division. When it is used, the organization is departmentalized on the basis of functions. The functions will differ in non-industrial concerns or institutions. The limitations of project organisation are as under: (i) Uncertainty in project structure arises because the Project Manager has to deal with specialists from a number of diverse fields. The advantages of functional structure are as under: (i) It is easier to organise departments based on functions and sub-functions. It provides for a clear definition of functions and responsibilities. Create and disperse departmental progression stream charts to everyone so that the bosses and their commitments are clearly caught on by everyone. Simple structure is a basic organizational design structure with low departmentalization, little work specialization, wide spans of control, centralized authority (typically the owner has most of the power) and little formalization or rules that govern operation. The different organisational structures described above have their own advantages and disadvantages. For instance, line organisation is a kind of mechanistic structure. v. Career patterns and professional development in specialised area. 21 days ago. Each unit is relatively self-contained in that it has the resources to operate independently of other divisions. The benefits of structure based on customers are as follows: (i) Customer departmentation can focus on the special needs of different kinds of customers. There are some disadvantages to having a simple organizational structure in a business, some of which include: In an organization with no managers to lead employees, the leader becomes the sole provider for employee guidance and instructions for tasks. This can give the leader more work than any other employee in the business. 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. iii. (iii) Product departmentation may sometimes lead to difficulties in coordination of certain specialised activities like marketing, financing and accounting. Various positions in the central organisation spend most of their customers structure of an organisation chart a! 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