No two people are the same, so no two employees have exactly the same skill sets. Organizational structure defines the way in which the people and resources are organised and coordinated by the authority to achieve the organizational goals. Functional Structure: . Women on Writing. Textbook Solutions 11268. Organisational effectiveness is basically about the ability of the organisation to meet its set goals and objectives given the resources at its disposal. She's been published in several business publications, including The Employment Times, Web Hosting Sun and WOW! He will try to force square pegs through round holes. Some of the advantages of a pure line organisation are: (i) A line structure tends to simplify and clarify responsibility, authority and accountability relationships. Designers can instead build an organic, horizontal structure, which flattens management levels and decentralizes decision-making. A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Matrix organisation, also called grid organisation, is a hybrid structure combining two complementary structures namely, functional departmentation with pure project structure. Name the type of organisation structure which promote flexibility and initiative - Business Studies - First and the most important advantage of this organizational structure type is the efficient project organization. Workplace flexibility meets the needs of both the business and its workers. The advantages of divisional structure include flexibility in terms of usage of product structure, geographical structure and market structure depending upon the need of the organization. 2. unionization) on the other. The flatness of Google’s organizational structure has the advantage of promoting innovation and creativity, based on the sharing of knowledge throughout the business organization. The second level includes managers or team leaders, and the third level includes teams overseen by a corresponding manager or team leader. Flexible Organizational Structure. A project is an organizational effort with a specific objective that needs resources, and must meet time, cost and quality requirements. For example, a non-tech company might decide to develop a mobile app quickly and need to pull workers from departments such as marketing, information technology, research and development and sales to produce it. Workplace flexibility can enhance work-life balance for employees, leading to greater satisfaction and retention. Flexibility in an organization also comes with some downsides to consider. To save money and get up and running as soon as possible, a small business just starting out may adopt this model where it may have a few essential employees but no top manager or formal departments. They also reduce the amount of office supplies they use. All the employees know exactly what position they are in and also know what job they have to do. Functional Structure. Question Bank Solutions 14550. It promotes flexibility and initiative because each division functions as an autonomous unit which leads to quick decision-making. One of the factors that seriously alters the playing field is technology. CBSE CBSE (Arts) Class 12. Let’s start with your company policy. Secondary School. A bureaucratic structure has both advantages and disadvantages. The matrix structure is a type of organizational structure in which individuals are grouped by two different operational perspectives simultaneously; this structure has both advantages and disadvantages but is generally best employed by companies large enough to justify the increased complexity. Giving employees so much autonomy also increases the possibility of power struggles that can lower morale, affect motivation and disrupt work activities in a way that hurts productivity. One of the characteristics of a flexible organization is that it is prepared for uncertainty. Your employees also have to do a lot less commuting to and from work, which means your organization's carbon footprint will also be reduced. A formal organization is helpful and strict in the ways a … A. Important Solutions 2834. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. Because all resources of the project are dedicated to project tasks and assignments. The disadvantage includes higher costs associated with maintenance of such structures. Hierarchy has a vertical chain of command with different levels of authority, for instance, between a superior and subordinate level in the company. Divisional Structure. For the purposes of this article, we propose using a simple framework for thinking about competitive strategy. Essential components of a successful strategy include, but are not limited to, the following: 1. We live in an era of risk and instability. Sometimes, a company would have to change their system or structure so it … No, that's not right. Unity of Command and Direction 7. What Support Structures Must Be in Place to Meet the Needs of a Flexible Organization? This model can also help save companies money due to the need to pay fewer managers and the potential for higher productivity and work quality. So a flexible model that decentralizes control becomes most practical for the business's success. The levels of responsibility and authority are likely to be precise and understandable. Of the alternatives given A is the most noted of the supposed advantages of the matrix system. A network structure is characterized by technology that enables the organization to have control over activities contracted out B. After reading this article you will learn about the advantages and disadvantages of different types of organisation:- 1. The simple structure is a "flat" organization; it usually has only two or three vertical levels, a loose body of employees, and one individual in whom the decision-making authority is centralized. Flexibility and promptitude are the qualities of the organizational success … The majority of German companies are traditionally organized and focus on hierarchical structures, just like in the past. A flat organization may give workers in such businesses full control over the projects they do. Such a company should have measures in place, in the event of changes in technology, regulation, or even the economy. For example, a company could have a group working in information technology, another in marketing and another in finance.Each department has a manager or director who answers to an executive a level up in the hierarchy who may … Balancing Employee Needs With Organizational Demands for Performance. Flexibility: b) Respect: c) Individualism: d) Understanding: Yes, that's correct. A flexible structure offers the potential for more innovation since workers aren't restricted to departments and can more easily share their knowledge and make decisions. Advantages and Disadvantages of Line Organisation 2. There are some aspects that have allowed flexibility to be put in place in the workplace: * The biggest asset to an organisation is the people who work there, therefore this can create competitive advantage through people. A bureaucratic structure has both advantages and disadvantages. Organizational structure How individual and team work within an organization are coordinated. In quick change conditions, flexibility is a competitive advantage. McDonald’s organizational structure establishes the arrangement or pattern of interactions among various business areas. stability and flexibility is critical: organizational structure, which defines how resources are distributed; governance, which dictates how decisions are made; and processes, which determine how things get done, including the management of performance. Defined by four specific features including a clear hierarchy and a rigid division of labor, a bureaucracy can provide stability and security, while discouraging favoritism. A good manager knows how to bring people together who have differing talents and then to unite them under a single cause. No, that's not right. This is the simplest & the most prevalent form of organizational structure. The team would break up once the app development completes. Reviewed by: Jayne Thompson, LL.B., LL.M. people sign on white background image by T.Tulic from. Academia.edu is a platform for academics to share research papers. Workplace flexibility can enhance work-life balance for employees, leading to greater satisfaction and retention. Whatever challenges that come along will strain the organization. Just look at the numbers. (ii) A line structure promotes fast decision making and flexibility. Types of Organizational Structures Functional Structure . b) Standardization is the key concept that underlies the bureaucracy. Clear Line of Authority 4. When you enable your company to become adaptable, it is able to evolve with the times, and it will survive longer, becoming continually more prosperous. When your management structure is flexible, you will get the most out of your workforce, depending on their individual talents. time flexibility, labour turnover, compensation schemes and some institutional aspects (e.g. A unique positioning 2. Alternatively, this type of structure can hinder productivity. An organisations structure can depend on its size, the sector it operates in public, private, or third sector i.e. Such teamwork tends to be more productive than other work structures, while also costing much less to maintain. ADVERTISEMENTS: Everything you need to know about the Types of Organizational Structure. Organizational structure refers to how individual and team work within an organization are coordinated. Flexible work arrangements are more than a trend—they’re a cost-efficient way of keeping a business running. The Future is Flexibility: New Organizational Structures for Companies. A defensible positioning, i.e., difficult for competitors to replicate 3. Perhaps the biggest advantage of a matrix structure is that is brings together highly skilled team members from different departments, allowing the organization to capitalize on the resources it already has rather than seeking expertise and recruiting project team members from outside of the organization. 2. Flexibility: b) Respect: c) Individualism: d) Understanding: Yes, that's correct. It’s best if the organisation is flexible in the number of people and the skills in … Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup, and individual. Organizations offer their employees a more diverse range of options include chaotic situation two. Manager who is too rigid, mechanized structure would be a boon your... 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