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Organizational Structure (Organization (Six key elements of organizational…
Organizational Structure
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Design Options
Functional Structure
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Strength: economies of scale, in-depth skill development (specialization).
Weaknesses: slow response time to environmental changes which require coordination across departments, may lead to management overload, less innovation, restricts employees view of the overall organizational goals.
Divisional Structure
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Central headquarters, focusing on results, coordinates and controls the activities, and provides support services between divisions.
A weakness, is the tendency to duplicate activities among divisions.
High product visibility leads to customer satisfaction; enables adaptation to differences in products, regions and clients.