Download Organizational Structures: Traditional and Contemporary Designs and more Slides Business Strategy in PDF only on Docsity!
TYPES OF ORGANIZATIONAL DESIGNSTYPES OF ORGANIZATIONAL DESIGNS
A. TRADITIONAL
DESIGNS
1. Simple Structure
2. Functional
Structure
3. Divisional
Structure
B. CONTEMPORARY
DESIGNS
1. Team Structure
2. Matrix Structure
3. Project Structure
A. TRADITIONAL
DESIGNS
1. Simple Structure
2. Functional
Structure
3. Divisional
Structure
B. CONTEMPORARY
DESIGNS
1. Team Structure
2. Matrix Structure
3. Project Structure
1. Simple Structure
A simple structure is an
organizational structure:
1. Simple Structure
A simple structure is an
organizational structure:
A. TRADITIONAL DESIGNS^ A. TRADITIONAL DESIGNS
- (^) With low departmentalization,
- (^) Wide span of control
- (^) Authority centralized in a single person, and
- (^) Little formalization
A. TRADITIONAL DESIGNSA. TRADITIONAL DESIGNS
2. Functional Structure
A functional structure is
defined as a design that
groups similar or related
occupational specialties
together. It is the
functional approach to
departmentalization
applied to the entire
2. Functional Structure
A functional structure is
defined as a design that
groups similar or related
occupational specialties
together. It is the
functional approach to
departmentalization
applied to the entire
Example Operations Finance Product research Human resources Development
Example Wal-Mart international Wal-Mart specialty Stores Sams Clubs Supercenters
Structure Strengths Weaknesses Simple Structure (^) • Fast, flexible; inexpensive to maintain; dear accountability
- Not^ appropriate^ as organization grows; reliance on one person is risky Functional Structure (^) • Cost-saving advantages from specialization (economies of scale, minimal duplication of people and the equipment, and employees are grouped with others who have similar tasks
- Pursuit^ of^ functional goals can cause mangers to lose sight of what is best for the overall organization; functional specialist become insulated and have little understanding of what other units are doing Divisional Structure •^ Focuses^ on^ results—division managers are responsible for what happens to their products and services
- Duplication^ of^ activities and resources increases costs and reduces efficiency
Example Structured by teams 10 self managed teams with team leader Called store team
B. CONTEMPORARY DESIGNSB. CONTEMPORARY DESIGNS
**2. Matrix Structure An organization structure that assigns specialists from different functional departments to work on one or more projects led by project managers.
- Matrix Structure An organization structure that assigns specialists from different functional departments to work on one or more projects led by project managers.**
- (^) How does a matrix structure work in reality?
- (^) Employees in a matrix organization have two managers:
- (^) Their functional department manager and their product or project manger, who share authority.
- (^) The project managers have authority over the functional members
- (^) Decisions such as promotions, salary recommendations and annual reviews ,remain the functional manager’s responsibility.
B. CONTEMPORARY DESIGNSB. CONTEMPORARY DESIGNS
3. Project Structure
A project structure is an
organizational structure in
which employees
continuously work on
projects. This is like the
matrix structure; however
when the project ends the
employees don’t go back
3. Project Structure
A project structure is an
organizational structure in
which employees
continuously work on
projects. This is like the
matrix structure; however
when the project ends the
employees don’t go back
Project Structure
What’s great about this kind of structure is-
There is a clear established lign of authority.
Example known as Oticon Holding project teams form, disband, and form, again as the work requires. has no organizational departments or employee job titles all work activities are project based
