However, it is very easy to create a static webpage on your own. Nupedia was Further, a boundary less organization differs from a virtual organization in the sense that the former is a kind of structure that an organization may adopt while the latter is an alliance between two or more organizations to achieve certain specified objectives. Disadvantage: Weakening of Common Bonds. 2023 EduBirdie.com. Simple says.. natural beauty comes from goodness Proud to be a globally certified PETA Cruelty-Free skincare brand that is kind to skin, the planet and animals too! Informal communication plays a bigger role. These flat organizational structure advantages and disadvantages show us that when it is implemented with a clear plan, it can be successful. Advantage: Specialization. Nupedia's articles were written and owned by Bomis, Inc which was a web portal company. It helps in concentrating on the special requirements of the customers of each region. The second basic structural form employed by organizations is the divisional structure. 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. WebCompare and contrast them and describe the advantages and disadvantages of the two that you choose. It requires decision making through the levels of organization and flattens out the vertical appearance of a hierarchy. (iii) It leads to greater satisfaction of customers which enhances the reputation of the enterprise among the public. Expert Answer. The major advantages of departmentation by territory are the following: i. (ii) Project organisation provides greater flexibility in organisation; greater check over the project work, provision of determining exact responsibility and better co-ordination of organisational resources. The problems emerge because of the following reasons: i. However, the functional structure does not work very efficiently once the firm takes up diversification as the new activity may be quite different from the old one and may require different perspective which may not be adequately provided by functional structure. Learn more. Choice making for an organization is as a rule spared for the administrators of the organization. In this form, each major product or product line is organized as a separate unit. 1. Boundary less organizations are better equipped to manage these features. So as long as people know how to communicate their thoughts, they will more likely offer help. }rGcJ1h%1Ipht]P/`[t"S%73z.0bDw[ee=i~{`h0[wG97\7am97lQss,[nWO Question 1 Advantages of decentralised The advantages of a decentralised structure in relation to CBA are speed. The structure of an organisation is generally shown on an organisation chart or a job-task pyramid. Retrieved from Chron: https://smallbusiness.chron.com/importance-good-organizational-structure-3792.html, Ingram, D. (2019, March 12). 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. It facilitates strategy implementation by improving coordination between similar divisions and making accountability to different business units. The owner manager gets invested with a complete knowledge of his organisation and its business. The organisational structure of an enterprise may undergo changes when there are changes in such factors as the size of the enterprise, nature of business, marketing characteristics, etc. The idea of this report is to analyze the retailer I have chosen how approaches its: Organizational Structure and Management, Marketing and Human resource management and, to discuss the different impacts the external business environment has and will have on the retailer. iv. Importance of Organization Culture. On the completion of project, the internal staff will be sent back to their respective parental departments or may be shifted to other projects. There is an urge to focus on short-term performance, because divisional performance is measured on ROI and revenue growth. Various leveled structure sets down the two channels and the cases of correspondence. 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. It enables an organisation to quickly and effectively respond to changes in regional conditions. These networks are not fully reliable at all times. It encourages general management development. This essay is available online and was probably used by another student. iv. Small-business proprietors ought to start considering a formal structure early within the development stage of their business. (vi) It facilitates the expansion of business in various regions. Disadvantage: Segregation. 21 days ago. The span of control becomes too large at top levels. However, the boundary less organizations should not be treated as panacea for all structural ills because they have their own drawbacks which are follows: i. iii. Divisional structure offers many advantages over functioned structure especially in terms of autonomy for efficient management, management development, increasing organizational size up to any limit, and taking into account of specific problems related with each product or territory contributing to the overall objectives of the firm. The organization culture brings all the employees on a common platform. 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. i. SBU structure makes the task of planning and control by the corporate office more manageable. 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. In the boundary less organization, vertical boundaries are removed through flattening of organizational hierarchy. It facilitates measurement of unit performance. 8. For example, a company may have three divisions to manage textiles, cement and shipping. SBU concept was evolved by General Electric Company (GEC) of USA to manage its multi-product business. This type of structure is highly centralised. A perfect example of this strategy is the military organization. (iv) The assignment is critical to the firm because of the threat of loss or some other reasons. It is appropriate when each product is relatively complex and a great deal of capital is required for each product. WebDiscuss its advantages and disadvantages. v. Coordination of functional activities related to a product line is easy under this structure. First of all, the performance of each divisions assessment can be done separately, and decisions can be made through their performance. iv. In India, many companies have diversified into unrelated businesses and have found functional structure quite unsuitable for them. (ii) It allows giving balanced weightage to the basic functions on which the survival of a firm depends. It provides for a clear definition of functions and responsibilities. The managers in the central organisation spend most of their time coordinating and controlling external relations. When it is used, the organization is departmentalized on the basis of functions. mu_\-w;@M8#)L);,-/9grt7S0S~ It could result in interdepartmental conflicts or lack of coordination between the functions. WebAdvantages of Cooperative Society: The cooperative shape of the agency gives the subsequent advantages: Easy to Form- A cooperative society is a voluntary affiliation g. They are frequently responsible for acquiring any new training they might need. The major advantages of the functional type of organisation are the following: i. You can order a unique, plagiarism-free paper written by a professional writer. The products are often unrelated and require different emphasis on different functions. Customer Based Structure 12. It would think about the effect of clients, providers, contenders, lawful and political changes and social and monetary conditions. Product based structure is followed by giant organisations having multiple product lines. Mechanistic and Organic Structure. In India, many companies have organised their businesses on the concept of SBU. Center administration need to take on more of a support role to the choices made by the organization, rather than endeavoring to manage anything to workers. Disclaimer 8. However, with advances in information technology, the network structure is gaining popularity. Step 1: Get your team together to identify the deliverables and sub-deliverables of the project. (Root, 2017)An organization ought to continuously take a great structure since a well-structured organization is able to create way better choices and adjust way better to changes within the commerce world, whereas an ill-structured, or a basically confounded organization leads to bottlenecks within the decision-making handle and can have an greatly awful impact on generation and income. Businesses require structure to develop and be productive, otherwise youd have individuals pulling in all sorts of different directions. Utilization of approaches and the achievement of the targets gotten to be less complex. Flatarchy structure is a result of mixing functional and flat structures. 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. Coordination and control take place through reciprocal adjustments among the members. (b) Are temporary decisions. Personnel are drawn from their respective functional departments. It does not allow employees participation in decision making. 3. All the authority and decision-making is concentrated in the owner manager who often directly supervises all the activities. What is Decentralization: Advantages & Disadvantages of Decentralisation. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. 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. i. iii. Functional structure is, perhaps, most widely used in medium and large organizations with limited number of products. It is the oldest and most common organisation structure. Boundary less organizations use computer networks extensively. The project structure consists of a team of specialists to work on and complete a particular project. Functional structure is based on specialisation of functions. iii. iii. It is very useful where it is desired to introduce specialisation in the performance of various functions like production, finance, marketing, etc. 3. The dangers of This is useful for those organizations whose activities are geographically spread such as banking, transport, insurance, etc. It is suitable where environment is uncertain and generally dynamic or unstable. The advantages of product based structure are as follows: (i) Product departmentation can reduce the coordination problems which are created under functional departmentation. Leads to competitive spirit within the organisation. Functional structure provides essentially slow decision making process because the problem requiring a decision has to pass to various departments as all of them have something to say on the matter. 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. It helps to maintain the power and prestige of the major functions. 1. (v) The departments based on territories can function as autonomous units. vi. The management groups the activities on this basis to cater to the requirements of clearly defined customer groups. It increases problems of central management control. The important disadvantages of the matrix organisation are the following: i. It is highly informal and the coordination of tasks is accomplished by direct supervision. Role of the group Vice President is often ambiguous. Product structure can also help your business: Product organisational structure does have certain disadvantages, including being difficult to scale and vi. This structure is a hybrid type used in startups and small companies. WebSee definition of simple on Dictionary.com adj. iii. List of Advantages of a Flat Organizational Structure 1. It has some of the advantages of decentralisation. This problem gets magnified when there is a tendency for the functional departments to become jealous of their prerogatives and fight to promote and preserve their specialisation rather than work towards unified project objectives. When directors are given a assignment, they ought to pool the resources essential to assist their specialists to urge the work done. Chance of differences in image and quality may occur across divisions. Cost and profit responsibilities may not be very clear in the matrix organisation. ii. It is employed where the unique characteristics of the product are of great significance and they require specialised machines and equipment and trained personnel. Papers provided by EduBirdie writers usually outdo students' samples. For various projects, there may be several project managers or co-coordinators each getting required resources and personnel from organisation so as to complete the project in time. Each product division maintains its separate facilities and personnel. For example, Century Textiles has separate divisions for textiles, cement, and shipping. (iii) The project must be completed within the prescribed time. Prohibited Content 3. Each division caters to different customers and has different types of competition. v. It tends to encourage overspecialisation, narrowing viewpoints of key personnel and limit the development of general managers. disadvantages of data structure. Divisions may grow too large impairing managerial efficiency. 7. In this structure employees are supervised by two or more managers who they report to depending on the situation or project. However, advantages of divisional structure score over its disadvantages. (iv) Motivation of specialists may pose another problem for the project manager. (ii) Staff officers may resent their lack of authority. 8. (iii) Project organisation requires specialists in various fields. Away from of control, obligation relationship workplaces way better comprehension of the targets and the procedures of the undertaking. 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. An organisations growth makes structure complex. In this system, an individuals performance is appraised by his superior, peers, subordinates, and outsiders interacting with him. (iv) Decisions are delayed where decision-making involves two or more departments. The examples of organic structures include project structure, matrix structure and network structure. If there are too many divisions, coordination becomes complex and difficult. This structure is used in large companies that work across several horizontal objectives. Functional organisation is highly suitable for an enterprise engaged in production and distribution of a single product or a small number of products. You will got to consider contributing in a workflow program for superior record taking care of. Some companies can do something very well but struggle with most others. This structure is popular with giant firms dealing in multiple products and operating in different geographical regions. Reliance Industries Limited has six product divisions-textiles, polyester, fibre, intermediates, polymers, chemical, and oil and gas. Thus, a subordinate in matrix structure may receive instructions from two bosses. There are rigid hierarchical relationships in the organisation. viii. Each regional office has its own set of functional departments and operates under the strategic policies and guidelines established by corporate management. Some of the types and classification of organisation structure are:-, 1. Geographical structure is followed in case of service organisations which have offices in different regions or geographical areas. In this form, regional offices are established as separate units. It has neither central office nor organization chart; it has no hierarchy, no vertical Integration.. Data were gathered through grammaticality judgment and translation tasks. Creating synergy is the process of putting two or more elements together to achieve a sum total greater than the sum total of individual elements separately. It allows different organisations engaged in research and development, consultancy, manufacturing, financing, transportation, security etc. 7. 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. For example, GEC was earlier having nine product groups and forty-eight divisions which were reorganised into forty- three strategic business units, many of which crossed group, division, and profit centre lines. though product lines can be added and dropped easily without dislocating the existing operations. 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. Web1 as in plain free from all additions or embellishment a simple design, and one that never goes out of fashion Synonyms & Similar Words Relevance plain unadorned bare clean naked unornamented stripped honest unvarnished unembellished undecorated spartan bald restrained quiet plain-vanilla homely unsophisticated modest unpretentious elemental The divisional structure is not without limitations. iv. There is no single organisation structure or design that is suitable for a given strategy. Advantages And Disadvantages Of Structures The organisational structures and strategic planning of both Priesthorpe and Hollywood Bowl. For instance, in an industrial enterprise, the major functions like production, finance, marketing and personnel may be grouped into different departments. The structure supports holistic approach to the project. Step 2: Gather the necessary documents such as the All rights reserved, The Relationship Between Organizational Structure And Job Performance, Organizational Structure And Behavior For Dunkin' Brands, Organizational Structure For Hardware Shack, Organizational Structure: Management, Marketing And Human Resource Management, AJS Organizational Administration In Justice And Security, The Organizational Structure Of Nazi Concentration Camp, Organizational And Management System Of Nike Company, Apple's Organizational Culture And Structure, Motivation And Leadership In Different Organizational Structures. Therefore, he must coordinate the instructions received from two or even more bosses. Product is an important basis of departmentation because it creates product divisions each of which could be considered as a viable profit centre for accountability purposes. 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