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COMPANY STRUCTURE - Coggle Diagram
COMPANY STRUCTURE
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Functional Structure
Employees are grouped into different departments based on their skill sets, accountability, and tasks. Examples: IT and Accounting companies
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Cons
- Employees may get bored because they do the same daily work
- Competition may arise between employees
- Poor communication and cooperation between departments and units; lack of teamwork and reduced flexibility
- Delays in decision-making due to high hierarchy and bureaucracy
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Flat Structure
Has few managerial positions, workers can move up or down throughout the company as needed => fast decision-making, improved communication
Pros
- Better communication and relationships between different roles
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- Better ability for the business to change and react
- Simple, fast decision-making
- More job satisfaction as there is more autonomy
- More self-direction can lead to more innovations and efficiencies
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Cons
- Risks of generalization and confusion since employees don't know who to report to
- Lower level accountability since they have more than one boss
- Power struggles in the absence of a formal system
- Lack of long-term growth and promotional opportunities
- Difficulties in scaling up and growing the company
- Lack of employee specialism and specific functions
Matrix Structure
- A combination of functional and divisional structures, allows decentralized decision-making, greater autonomy, and interdepartmental interactions, thus creating productivity and innovations
- Incur higher costs and may lead to conflicts between vertical functions and horizontal product lines
Pros
- Collaboration between different departments
- Combine project and functional management structures
- Allows interdepartmental communication
- Employees can learn new skill sets
- Managers and team members keep their functional roles
Cons
- Managerial roles may not be clearly defined
- Team roles may not be clearly defined
- Decision-making can be slowed down
- Too much work can be overload
- Measuring performance can be difficult