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COMMON ORGANIZATIONAL DESIGNS - Coggle Diagram
COMMON ORGANIZATIONAL DESIGNS
Traditional designs
Functional structure
Strength: cost-saving advantages from specialization and employees are grouped with others who have sim-ilar tasks
Departmentalization by function
Operations, finance, human resources, and product research and development
Weaknesses: pursuit of functional goals can cause managers to lose sight of what's best for overall organization; functional specialists become insulated and have little understanding of what other units are doing
Divisional structure
Composed of separate business units or divisions with limited autonomy under the coordination and control the parent corporation
Strengths: Focuses on results-division manager are responsible for what happens to their products and services
Weaknesses: Duplication of activities and resources increases costs and reduces efficiency
Simple structure
Weaknesses: Not appropriate as organization grows;reliance on one person is risky
Strength: fast, flexible, inexpensive to maintain, clear accountability
Low departmentalization
wide spans of control
centralized authority
little formalization
Contemporary Designs
Boundaryless Organization
An flexible and unstructured organizational design that is intended to break down external barriers between the organization and its customers and suppliers.
Removes internal (horizontal) boundaries:
Eliminates the chain of command
Has limitless spans of control
Uses empowered teams rather than departments
Eliminates external boundaries: Uses virtual, network, and modular organizational structures to get closer to stakeholders
A structure that is not defined by or limited to artificial horizontal, vertical, or external boundaries; includes virtual and network types of organizations.
Advantages: Highly flexible and responsive. Draws on talent wherever it's found
Disadvantages: Lack of control. Communication difficulties..
Team structure
A structure in which the entire organization is made up of work groups or teams
Advantages: Employees are more involved and empowered. Reduced barriers among functional areas.
Disadvantages: No clear chain of command. Pressure on teams to perform.
The entire organization is made up of work groups or self-managed teams of empowered employees
Matrix and project structures
A structure that assigns specialists from different fun cal areas to work on projects but who return to their areas when is completed. Project is a structure in which employ continuously work on projects. As one project is completed. employees move on to the next project.
+Specialists from different functional departments are assigned to work on projects led by project managers.
+Matrix and project participants have two managers.
+In project structures, employees work continuously on projects; moving on to another project as each project is completed
Advantages: Fluid and flexible design that can respond to environmental changes. Faster decision making
Disadvantages: Complexity of assigning people to projects. Task and personality conflicts.