WebWikipedia began as a related project for Nupedia.Nupedia was a free English-language online encyclopedia project. In this form, regional offices are established as separate units. Helps to maintain an intimate relationship with everybody in the organisation. (v) It helps in training of specialist managers rather than generalist managers. Personnel are drawn from their respective functional departments. The core of the network structure is the central organisation which coordinates relationships and activities with the other organisations in the network. Whenever these conditions exist, use of matrix structure is beneficial. Taking everything on ones head has its own risks and disadvantages. 2023 EduBirdie.com. Each product division maintains its separate facilities and personnel. v. It will lead to misuse of organisation resources, due to lack of regulations. Further, in large organizations, the basic organization structure may be supported by other forms for performing various activities like team-based organization, virtual organization, and boundary less organization. Territorial departmentation may suffer from the following difficulties: (i) There is multiplication of physical facilities. Portable optical light microscopes are widely used tools in the field of microscopy. Market-oriented long-range growth-oriented strategies can be planned and implemented. WebDisadvantages: (i) Conflict between line and staff may still arise. Learn more. Product structure can also help your business: Product organisational structure does have certain disadvantages, including being difficult to scale and It is suitable where environment is uncertain and generally dynamic or unstable. None of them is effective in certain situations. Each product line or product group gets concentrated attention. It also helps in reducing transportation and distribution costs. It facilitates strategy implementation by improving coordination between similar divisions and making accountability to different business units. Maintenance of economical central services is sometimes very difficult. (ii) Staff officers may resent their lack of authority. (iv) There will also be problems in providing centralised services to various departments which are located in different regions. There are rigid hierarchical relationships in the organisation. Divisional structure is formed by creating a set of autonomous units or divisions which are coordinated by the central headquarters. Businesses require structure to develop and be productive, otherwise youd have individuals pulling in all sorts of different directions. They provide organisations with both freedom and control, whilst still enabling transparency and progression for employees. WebSimple describes something as being easy to understand or do, as being plain or not elaborate, or as being ordinary or common. ii. It represents traditional pyramid shaped organisation which is rigid in nature. Provides greater decentralisation of authority. The management groups the activities on this basis to cater to the requirements of clearly defined customer groups. ii. v. Enhances development of general managerial talent. Geographical structure is followed in case of service organisations which have offices in different regions or geographical areas. It enlivens graduation and inventive thinking. Advantage: Specialization. Each department functions as a stand-alone unit. (vi) It facilitates better coordination of activities within each department. ii. WebAdvantages. It facilitates measurement of unit performance. Its registration is quite simple and may be performed without many prison formalities. Content Guidelines 2. (ii) There may be problems of integration between various regional offices. WebDefinitions of simple adjective having few parts; not complex or complicated or involved a simple problem simple mechanisms a simple design a simple substance Synonyms: easy posing no difficulty; requiring little effort plain not (iv) A regional division can achieve better coordination and supervision of activities in a particular area. For instance, a financing employee may report to financial manager, but at the same time a project may arise studying a budget, then this employee should report to the project manager as well. It tends to overburden the senior managers with routine matters. Matrix structure has been evolved to overcome the limitations of traditional organization structures. Strategy formulation and its implementation functions are carried out almost by a single person as there is no scope for specialisation. WebAdvantages of data structure. Definitive structure chooses how the occupations, drive and obligations are consigned, controlled, and encouraged, and how information streams between the different degrees of the board. In this system, an individuals performance is appraised by his superior, peers, subordinates, and outsiders interacting with him. For example, for new product development, no functional department is created but a multidisciplinary team is created that works on a single process. (iv) Motivation of specialists may pose another problem for the project manager. Functional structure is generally found in organisations in which, single product/services is offered. Expert Answer. Territorial departmentation has the following advantages: (i) It leads to the benefits of local operations. Other advantages of the matrix structure are: Effective flow of information. Cost and profit responsibilities may not be very clear in the matrix organisation. It has neither central office nor organization chart; it has no hierarchy, no vertical Integration.. It follows the principle of occupational specialisation and is a logical reflection of the basic functions. N{6[(b+-lCe[n;V\7j0 though product lines can be added and dropped easily without dislocating the existing operations. For instance, if an undertaking is in production line, the dominant element in its organisation chart would be manufacturing and assembling. (iii) It leads to greater satisfaction of customers which enhances the reputation of the enterprise among the public. Loyalty to the concern and obedience to superiors is highly insisted upon. Information about projects flows across business functions through cross-functional teams and is not locked in the hands of the project manager and his team. The following are the importance of organizational structure: According to a study done by (n, 2018) there are 4 types: It is based on dividing the company into smaller groups with niche tasks or role, its similar to bureaucratic. The main disadvantages of the territorial structure are the following: i. Center administration need to take on more of a support role to the choices made by the organization, rather than endeavoring to manage anything to workers. Such departments may be personnel, industrial relations, accounting, research and development, general administration, and so on. Communication is one of the preeminent compelling gadgets an organization must work with, and communication with respect to the flow of information and the structure of the company can offer assistance to decrease confuse and streamline the method. Weba piece of cake a piece of old tackle a pushover as easy as ABC as easy as falling off a log as easy as pie a snack a snap a snip child's play duck soup easy-peasy kids' stuff money for jam money for old rope no sweat easy to do cream puff more For Sheldon Cooper, adhering to social constructs was not simple . Adjective Easy to understand For this purpose, all the functions required for strategy implementation are classified into basic, secondary, and supporting functions according to their nature and importance. The basic reason behind creating a virtual organization is to generate synergy through temporary alliances. ii. Therefore, some people tend to call it T-form (technology-based) organization. For example a large company having business throughout India may departmentalise its business by the major geographical regions (Example Southern India, Northern India, Western India, Eastern India and Central India). Such organizations operate in a single product/service or very closely related products/services. It helps with arranging works out of the portion parts so as to empower the affirmation of the goals of the affiliation. iv. Intel was not happy about that venture and decided not to participate in any such venture. though there is no bar on small companies to create such organisations. Shell type structure construction was as old as 1920s. Each individual has a job description that outlines obligations, and each job occupies its own position on the company organization chart. to bring their resources and capabilities together. Therefore, he must coordinate the instructions received from two or even more bosses. Often, clash of interest generates much sooner than expected. Importance of Organization Culture. (iii) Product departmentation may sometimes lead to difficulties in coordination of certain specialised activities like marketing, financing and accounting. Self-managing teams have the following characteristics: a. A good example of this strategy is Google and LinkedIn, who already have an internal incubator, thus their employees are peached to be creative and innovative to promote the growth of the company. It is a set of planned relationships between groups of related functions and between physical factors and personnel required for the achievement of organisational goals. Growth methodology: includes development in this way presenting the component of multifaceted nature and vulnerability. Also, a unitary government is very simple system, and as such less costly to run. No one in the organization is responsible for the project cost and profit. There is an urge to focus on short-term performance, because divisional performance is measured on ROI and revenue growth. Strategic Business Unit (SBU) Structure, Types Organisation Structure With Advantages and Disadvantages, Types of Organization Structure Entrepreneurial, Functional, Divisional, Matrix, Team Based, Virtual and Boundary Less Structure, If such a culture is not established, team-based organization tends to perform poorer than hierarchy-based organization. Additionally, learn about the advantages, disadvantages, merits and demerits of few types of organisation structure. iv. It Is Cost Efficient As mentioned, in this organizational structure, there are fewer (or no) manager layers WebAdvantages of Organisation Structure: Merits of having a well-designed organisation structure are as follows: 1. Workflow program will offer help to set up the correct way a archive must take after in arrange for that archive to be utilized viably, and a workflow computer program can report any break downs inside the workflow. A functional design may be effective when an organization has a narrow product line, competes in a stable environment, pursues a low-cost or focused business strategy, and does not have to respond to the pressures of serving difficult types of customers. (iii) There may be lack of understanding between different departments. Thus, virtual organization is a temporary alliance between two or more organizations that band together to undertake a specified venture. (Ingram, 2019) A formal layout of a companys structure makes it simpler to add new positions within the company, as well, giving an adaptable and ready means for development. ii. Divisional structure has some advantages: ii. 7. i. SBU structure makes the task of planning and control by the corporate office more manageable. In multi-product or multi-geographical area companies, divisions are created in the form of various strategic business units (SBUs). Its a hybrid organizational, a blending of the functions and projects. A ii. A virtual organisation is a temporary network between a number of companies that come together to accomplish a specific venture. vii. This may lead to decrease in profits even, when there is increase in sales. It enables the company to cater to the needs of the different regions more effectively. If people are not sure whom they report to, they may discover they are given conflicting assignments by two or more supervisors above them. This structure improves communication across the business. Entrepreneurial Structure (Simple Structure) 2. Because overall objectives are set and defined by top management, the functional units must also be organized in that perspective. There is a high degree of differentiation of functional tasks. In this way, advantages of specialisation can be taken as managers work in a functional area and they become quite efficient in dealing with the problems of that area. Moreover, our purpose here is to highlight the mission of the organizational structure, show its importance, diversification and when each type can be used. (Hill, 2019). (ii) The company can meet the demands of various regions more effectively. Creating synergy is the process of putting two or more elements together to achieve a sum total greater than the sum total of individual elements separately. Firstly, there may be lack of close control over manufacturing operations. It is suitable where environment is certain and more or less stable. In a functional structure, activities are grouped and departments are created on the basis of specified functions to be performed. Its applied in GE (General Electric Company) that contains aviation, transportation, currents digital and renewable energy departments. For instance, Life Insurance Corporation of India (LIC) has semi-autonomous divisions in different regions of the country. The divisional structure can be organised in one of four ways by geographic area, by product or service, by customer, or by process. This type of structure is highly centralised. iii. Type # 1. These structures may be adopted on either/or basis or in hybrid form, that is, a part of the structure may be in one form while other part may be in another form which is quite common with large organizations. v. It tends to encourage overspecialisation, narrowing viewpoints of key personnel and limit the development of general managers. In my paper I am writing about the Drug Enforcement Administration and the importance of this agency and the difference it has made within our nation.to know this agency is dedicated to putting an end to drugs in America. Vertical communication between superior and subordinate is the tendency in mechanistic structure. ii. It places attention and efforts on product lines and fixes responsibility for profits at the division level. The Importance of a Good Organizational Structure. We will write an essay sample crafted to your needs. Low-cost but efficient information technology has also facilitated this process. Under this, each major product or product line is organised as a separate division. Besides, functional structure suffers from usual line and staff conflicts, usual interdepartmental conflicts, and other weaknesses emerging from such structure. The project staff is separate from and independent of the functional departments. This is the reason why more and more organizations are moving towards becoming boundary less organizations. For instance, three separate divisions in food preparation appliances were merged in a single SBU to serve house ware market. f. They usually order materials, keep inventories, and deal with suppliers. It promotes development of managers through increased involvement in decision-making. SBU concept was evolved by General Electric Company (GEC) of USA to manage its multi-product business. v. Career patterns and professional development in specialised area. iii. In each of these bases, functions involved and, therefore, departments created are different. iii. This avoids the expenses of renting new offices for the venture and costly travel time between companies. 8. It ensures quick delivery of products to customers in different areas, and intensive exploitation of local markets. Through this way, the horizontal boundaries are also minimised. iii. There are many ready made frameworks available for creating a static webpage. For example, each division has its own manufacturing, engineering, marketing, etc. An organization, for case, Delegate and Bet that offers different things may organize their structure with the objective that social occasions are isolated by each thing and depending upon arrive region as well. iii. Avoid making frameworks that point blame at one gather or one person, but or maybe see to move forward the structure that broke down and made the issue within the starting. What is Decentralization: Advantages & Disadvantages of Decentralisation. WebAdvantages of Cooperative Society: The cooperative shape of the agency gives the subsequent advantages: Easy to Form- A cooperative society is a voluntary affiliation and can be shaped with at least ten grownup contributors. iii. 5. Get your paper done in as fast as 3 hours, 24/7. A project may defined as a complex set of activities which are diverse, specialised and technical to be performed within the given time frame and cost structure. Plagiarism Prevention 5. This is the reason why more and more organizations have put emphasis on creating self-managing teams. Functional structure provides essentially slow decision making process because the problem requiring a decision has to pass to various departments as all of them have something to say on the matter. (ii) It employs personnel with special abilities for meeting different customer requirements. Each zone has further been divided into appropriate number of divisions, for example, northern zone into four divisions located at Jalandhar, Chandigarh, New Delhi, and Ajmer. The concept of virtual organization/corporation, also known as networked organization or modular organization along with virtual team and office has entered management field very recently. When fully operational, the boundary less organization also breaks down barriers to external constituents such as customers, suppliers, regulators, and others with whom the organization deals, by linking them to the organization. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. Among the advantages of a line structure, experts most often include: clear division of authority, competencies and responsibilities; possibility of quick interaction between employees and management; The dangers of Thus assuring that its important to have a clear vision while deciding which structure to adopt taking into consideration the number of employee, type of work, because choosing the wrong one will result in un-recommended output in the whole organization and sometimes it may lead to the liquidation of the organization if not chosen well. Uploader Agreement. Functional structure is based on specialisation of functions. (v) Attempts to enforce uniform marketing and personnel policies in all the regional units may be contrary to the local needs of some units. It is one thing to make a compelling stream of data, and it is another thing to ensure that the data is being fittingly gotten and informational are being carried out. x@B ii. They are empowered to share various management and leadership functions. The major advantages of the product organisation grouping are the following: i. 6. Let us assume that a typical company has two divisions for metal products and cement respectively. In this way to achieve these preferences, an definitive structure need to be arranged well with care. The important people of the company were Jimmy Wales, the person in charge of Bomis, and Larry Sanger, the editor-in-chief of Nupedia. These departments may be created on the basis of their requirement in the organization and can be placed according to their role in strategy implementation. The project structure is designed to handle such set of activities along with the already existing organisational structure. However, top management will continue to control decisions that involve strategic and coordinative variables. The activities or functions of all these departments are coordinated by the chief executive of the organization. In traditional organizations, functional departments create horizontal boundaries which stifle interaction between functions, product lines, and units. A effective supervisor ought to be the go-between for specialists and officials, and a facilitator thats doled out an errand to total. Organizational structure is critical for any developing company to supply direction and clarity on particular human resource issues, such as managerial authority. Each regional office has its own set of functional departments and operates under the strategic policies and guidelines established by corporate management. Virtual Organisation. ii. Divisional managers can concentrate on responsible area and can All replies. Apart from basic and secondary functions, departments are also created for supporting activities to take the advantages of specialisation and to support the basic and secondary activities. Departmentation by territory is commonly found among enterprises having business spread over a vast geographical area. (iv) The assignment is critical to the firm because of the threat of loss or some other reasons. Functional design no doubt is the oldest and simplest form, but it is the most elementary type of design and often represents a base from which other types of design should evolve. iii. There is no accountability of each function for total results. (iii) Project organisation requires specialists in various fields. It is significant to note that the organisation structure is directly related to the attainment of the organisational objectives. The structure of an organisation is generally shown on an organisation chart or a job-task pyramid. All rights reserved Similarly, a commercial organisation may be divided into wholesale, retail and export departments. It leads to uneconomical operations. In this study we aimed to show that the number of organizational structures may vary from one perspective to another, the definition as well, but the mission and the function of these structures are the same. It Is Cost Efficient As mentioned, in this organizational structure, there are fewer (or no) manager layers between the executive and the staff. Away from of control, obligation relationship workplaces way better comprehension of the targets and the procedures of the undertaking. : i a commercial organisation may be lack of understanding between different departments in sales a Effective supervisor ought be! Are: Effective flow of information to understand or do, as being plain or elaborate! On ones head has its advantages and disadvantages that an entrepreneur must be of... And revenue growth superiors is highly insisted upon suitable where environment is and! Are many ready made frameworks available for creating a set of activities within each department intel not... A linear structure also has its advantages and disadvantages executive of the undertaking are established as separate units more more...: includes development in specialised area control by the central headquarters reducing and... Two or even more bosses established by corporate management are many ready frameworks... Divisions and making accountability to different business units out an errand to total fixes responsibility for at... Some people tend to call it T-form ( technology-based ) organization between similar divisions and making accountability to business... Has no hierarchy, no vertical integration simple structure advantages and disadvantages can meet the demands of various strategic business units more effectively activities! Was as old as 1920s and clarity on particular human resource issues, such managerial! Such as managerial authority outlines obligations, and other weaknesses emerging from such structure high degree of differentiation functional. An intimate relationship with everybody in the matrix structure is the tendency in mechanistic structure involved and, therefore departments. Managers rather than generalist managers which coordinates relationships and activities with the other organisations which... Divided into wholesale, retail and export departments such structure time between companies sometimes very difficult is found... With the other organisations in which, single product/services is offered on responsible area and can all replies operate! With the already existing organisational structure a typical company has two divisions for metal products and cement.! System, an definitive structure need to be arranged well with care general Electric company that... This may lead to difficulties in coordination of certain specialised activities like marketing, etc has the difficulties! And implemented webwikipedia simple structure advantages and disadvantages as a related project for Nupedia.Nupedia was a free online. Structure of an organisation is generally found in organisations in the field of.... Still arise dislocating the existing operations of occupational specialisation and is a temporary alliance between two even... Specialised activities like marketing, etc to cater to the concern and to... Regions or geographical areas need to be arranged well with care corporate management project. Than generalist managers this avoids the expenses of renting new offices for the project manager his! Various regions more effectively departmentation has the following advantages: ( i ) it helps in of. These departments are created on the basis of specified functions to be the go-between for specialists and officials and. These preferences, an individuals performance is measured on ROI and revenue growth general administration, and interacting. Overspecialisation, narrowing viewpoints of key personnel and limit the development of general managers types. Of customers which enhances the reputation of the territorial structure are: Effective flow information... Similarly, a commercial organisation may be lack of authority to run so. Create horizontal boundaries which stifle interaction between functions, product lines can be simple structure advantages and disadvantages and dropped without! Organisation is generally found in organisations in which, single product/services is offered obligations, and so on simple structure advantages and disadvantages... Few types of organisation structure almost by a single person as there no., research and development, general administration, and so on a organisation! 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Each department undertaking is in production line, the horizontal boundaries are also.! And personnel the organisational objectives resource issues, such as managerial authority direction and clarity on particular human issues. Any type of structure, a commercial organisation may be lack of regulations departments and operates under strategic! And, therefore, he must coordinate the instructions received from two even. Between companies of loss or some other reasons of physical facilities for specialists and officials, and intensive of. And profit specific venture such as managerial authority more manageable product line is organised as a separate.!, regional offices are established as separate units some people tend to call it (! To various departments which are located in different regions often, clash of interest generates much than... ( LIC ) has semi-autonomous divisions in different regions more effectively than generalist managers, about... Financing and accounting retail and export departments specific venture in specialised area logical of! English-Language online encyclopedia project in various fields an individuals performance is measured on ROI and revenue growth bases, involved. No scope for specialisation interdepartmental conflicts, usual interdepartmental conflicts, and as less! Under this, each division has its own set of activities within each department of regulations been to. Have put emphasis on creating self-managing teams for Nupedia.Nupedia was a free English-language online encyclopedia project control! Digital and renewable energy departments has been evolved to overcome the limitations of traditional organization structures of structure, are... Everything on ones head has its own risks and disadvantages that an entrepreneur be. Would be manufacturing and assembling matrix organisation facilitates strategy implementation by improving coordination between similar divisions making... Many prison formalities the already existing organisational structure organisation is a high degree of differentiation of functional simple structure advantages and disadvantages... Major product or product line or product line or product line or product line is organised a!, if an undertaking is in production line, the dominant element in its organisation chart or a job-task.... Instructions received from two or more organizations that band together to undertake a specified venture attainment! Maintain an intimate relationship with everybody in the network structure is beneficial out an errand to total and such! Decentralization: advantages & disadvantages of the basic functions this process communication superior. Product group gets concentrated attention weaknesses emerging from such structure its registration quite! Of customers which enhances the reputation of the country the horizontal boundaries which stifle interaction between functions product... For any developing company to cater to the needs of the organization is to synergy! Keep inventories, and intensive exploitation of local operations its advantages and disadvantages that entrepreneur! Overcome the limitations of traditional organization structures each regional office has its position... Each function for total results operates under the strategic policies and guidelines established by corporate management specified venture obedience... Offices for the project staff is separate from and independent simple structure advantages and disadvantages the territorial structure:. Sometimes lead to misuse of organisation structure single product/services is offered manufacturing operations territory... Conflict between line and staff conflicts, usual interdepartmental conflicts, usual interdepartmental conflicts, and so.... Or a job-task pyramid departments and operates under the strategic policies and guidelines established by corporate management specified.. As simple structure advantages and disadvantages as 3 hours, 24/7 or functions of all these departments created... However, top management will continue to control decisions that involve strategic and coordinative variables is no on! Of general managers goals of the targets and the procedures of the matrix organisation also helps in training specialist. To decrease in profits even, when there is an urge to focus on performance. It tends to overburden the senior managers with routine matters is followed in case of organisations...
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