simple structure advantages and disadvantagessimple structure advantages and disadvantages

(ii) It focuses individual attention on each product line. Analytical cookies are used to understand how visitors interact with the website. Though some degree of such conflicts is positive, they may often be heightened specially in the absence of coordinative force leading to destruction in the firm. Strategy formulation and its implementation functions are carried out almost by a single person as there is no scope for specialisation. Computer networks are susceptible to attack from network hackers, viruses, and other types of mischiefs either for making money or just for fun. (vi) Since each product manager is required to supervise the diverse functions of production, sales and finance with respect to a particular product line, there is a wide scope for the training and development of all round executives. The major characteristics of a boundary less organization are as follows: i. The specialisation increases operational efficiency, economic flexibility, and greater motivation to the people having attached with their area of speciality. For building the project team, personnel are drawn both from the functional departments of organisation and from outside. In fact, most of the companies in information technology sector which are engaged in development of software for different purposes and for different customer segments have adopted this approach. c. They set their own goals and inspect their own work. Advantages. (v) It has been found to fit a number of widely-varying situations such as product development, installation of a new plant, etc. For instance, two divisions may have their separate marketing research wings or public relations departments. Product Based Structure 10. The owner manager gets invested with a complete knowledge of his organisation and its business. WebThis structure is an advantage for them because it allows McDonalds to produce a uniform product around the world at minimum cost. However, this can be treated as an operational problem which can be overcome through experience over the period of time. Complex and markedly different activities require faster decision making because time factor is of prime importance. Customer Based Structure 12. Before reading this article, understand the following Operating System topic: This article does not compare Operating system structures with other each other and their implementation. The fundamental concept in SBU is to identify the independent product/market segments served by an organization, and creating SBUs accordingly. The basic difference between a team and a group is in three contexts- job categoriesgroup has many narrow job categories and team has one or two broad categories; authoritygroup is directly controlled by the immediate superior and team has its own control mechanism; and reward systemreward in group system depends on individual performance and seniority and reward in team system is based on team performance and individual breadth of skills. There is an urge to focus on short-term performance, because divisional performance is measured on ROI and revenue growth. Thus, matrix structure not only employs a multiple command but also related support mechanism and associated organizational culture and behaviour. The mounting process leverages various benefits in computer practice. Responsibility and obligation are loosely defined; problems cannot be passed up, down, or laterally. vi. The disadvantages of product based structure are as under: (i) It results in the duplication of personnel and physical facilities. It is the oldest and most common organisation structure. The project staff is separate from and independent of the functional departments. For example, for new product development, no functional department is created but a multidisciplinary team is created that works on a single process. (vii) It allows delegation of authority by the chief executive to the various functional heads. Organization structure is the pattern in which various organizational activities are divided and assigned among positions, groups, departments, and divisions and the coordinating mechanism among these activities to achieve organizational objectives. Managers can concentrate on exceptions to eliminate any gaps or overlaps. There are different types of departmentation or organisational structure. As said above, product based structure is suitable only for fairly large organisations having multi-product lines and which can appoint top managerial personnel to handle semi-autonomous product divisions. All replies. If such a culture is not established, team-based organization tends to perform poorer than hierarchy-based organization. Since these activities may be divided and assigned in different ways, there are many forms of organization structure. Allows new business and new products to be added easily. 1. Many of these problems can be overcome through sharp focus on tasks and responsibilities of corporate and divisional management, measurement of performance of divisions, long-term policy for performance and incentives, creating more autonomy and decentralisation of authority, and finally the explicit strategies for both the firm as a whole and its various divisions. Boundary less organizations use computer networks extensively. 5.

This structure is popular with giant firms dealing in multiple products and operating in different geographical regions. A virtual organisation is a temporary network between a number of companies that come together to accomplish a specific venture. Staff experts many provide line officers with expert advice, such as dealing with certain technologies. Generally, small scale units (SSUs) or small firms produce single or very narrow product line in which, owner makes almost all decisions. v. It will lead to misuse of organisation resources, due to lack of regulations. Shell type structure Each unit is headed by a manager who is responsible for the organizations investment in facilities, capital, and people as well as for units development and performance. (iii) It leads to specialisation of physical facilities on the basis of products which results in economy. It may be the wave of the future for organisations to capitalize on certain types of ventures or projects. The functional structure is commonly found in small companies and also in large companies with single product line or narrow product ranges. BusinessManagementIdeas.Com. Divisional Structure 4. There is no accountability of each function for total results. However, the boundary less organizations should not be treated as panacea for all structural ills because they have their own drawbacks which are follows: i. Product is an important basis of departmentation because it creates product divisions each of which could be considered as a viable profit centre for accountability purposes. It is suitable for single-storey large-scale buildings, as well as for the construction of multi-storey or high-rise buildings. Disclaimer 8. ii. iv. Activities related to a function are grouped in a single unit with a view to give a well-defined direction to the whole group. ii. (ii) The company can meet the demands of various regions more effectively. Operating System structure is the basic model which is needed to implement Operating Systems. This means the S corporation has one level of federal tax to pay, and shareholders aren't subject to corporate tax rates. SBU concept was evolved by General Electric Company (GEC) of USA to manage its multi-product business. ii. iii. Boundary Less Organisation 9. Everything you need to know about the types and classification of organisation structure. Through these networks, people of boundary less organizations communicate across intra-organizational and extra-organizational boundaries. It relies heavily on information technology. iii. Each unit has its own functional structure for various activities necessary for the product. System software is installed on top of the operating system. Such a closed form structures are preferred these days. Coordination and control processes tend to be tightly structured. iv. What are examples of operational objectives? Since the project manager is wholly responsible for project results, he places more emphasis on efficient control, better customer relations, and uses his initiative and dynamism for the successful completion of project. Less disruption: Cooperatives allow members to join and leave the business without disrupting its structure or dissolving it. Batch processing and time-sharing maximize the usability of a processor by multiprogramming.

The specialists often have different types of approaches and perspectives. WebPros and Cons of Functional Organizational Structure. Under the functional structure, the organisation is designed on the basis of the basic functions, namely, production, finance and accounting, marketing and personnel. Therefore, organizational members do not find these very comfortable in comparison to traditional hierarchical systems. There are also several disadvantages to using steel girder bridges: Cost: Steel girder bridges can be more expensive than other types of For instance, Life Insurance Corporation of India (LIC) has semi-autonomous divisions in different regions of the country. It places responsibility for profits at the divisional level. WebAdvantages: Employees who work in such a structure are well organized and grouped according to tasks and functions Employees focus on specific work or mission For instance, it creates the difficulty of co-ordination between the departments organised on this basis and those organised on other bases. Whenever these conditions exist, use of matrix structure is beneficial. It is employed where the unique characteristics of the product are of great significance and they require specialised machines and equipment and trained personnel. Horizontal integration across functional departments often becomes difficult as the organization increases the number of geographic areas served and the range of goods and services provided. iv. It allows different organisations engaged in research and development, consultancy, manufacturing, financing, transportation, security etc. 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. (vii) Functional specialisation restricts development of generalists or managers with all-round capabilities. Under this structure, there could be confusion regarding job and task responsibilities. iii.