Functional structure Show
The functional structure groups positions into work units based on similar activities, skills, expertise, and resources (see Figure 1 for a functional organizational chart). Production, marketing, finance, and human resources are common groupings within a functional structure.
As the simplest approach, a functional structure features well‐defined channels of communication and authority/responsibility relationships. Not only can this structure improve productivity by minimizing duplication of personnel and equipment, but it also makes employees comfortable and simplifies training as well. But the functional structure has many downsides that may make it inappropriate for some organizations. Here are a few examples:
Divisional structure Because managers in large companies may have difficulty keeping track of all their company's products and activities, specialized departments may develop. These departments are divided according to their organizational outputs. Examples include departments created to distinguish among production, customer service, and geographical categories. This grouping of departments is called divisional structure (see Figure 2). These departments allow managers to better focus their resources and results. Divisional structure also makes performance easier to monitor. As a result, this structure is flexible and responsive to change.
However, divisional structure does have its drawbacks. Because managers are so specialized, they may waste time duplicating each other's activities and resources. In addition, competition among divisions may develop due to limited resources. Matrix structure The matrix structure combines functional specialization with the focus of divisional structure (see Figure 3). This structure uses permanent cross‐functional teams to integrate functional expertise with a divisional focus. Employees in a matrix structure belong to at least two formal groups at the same time—a functional group and a product, program, or project team. They also report to two bosses—one within the functional group and the other within the team. This structure not only increases employee motivation, but it also allows technical and general management training across functional areas as well. Potential advantages include
Predictably, the matrix structure also has potential disadvantages. Here are a few of this structure's drawbacks:
Team structure Team structure organizes separate functions into a group based on one overall objective (see Figure 4). These cross‐functional teams are composed of members from different departments who work together as needed to solve problems and explore opportunities. The intent is to break down functional barriers among departments and create a more effective relationship for solving ongoing problems.
The team structure has many potential advantages, including the following:
The disadvantages include:
Managers must be aware that how well team members work together often depends on the quality of interpersonal relations, group dynamics, and their team management abilities. Network structure The network structure relies on other organizations to perform critical functions on a contractual basis (see Figure 5). In other words, managers can contract out specific work to specialists.
This approach provides flexibility and reduces overhead because the size of staff and operations can be reduced. On the other hand, the network structure may result in unpredictability of supply and lack of control because managers are relying on contractual workers to perform important work. When a manager Groups workers into departments based on the tasks that they perform is called?The process that managers use to design a structure of working relationships that allows employees to work together to achieve organizational goals is called: organizing.
When a manager makes good use of resources to achieve goals that are inappropriate for the organization this is called?High efficiency & Low effectiveness is described as: Manager chooses inappropriate goals, but makes good use of resources to pursue these goals. Result = A high-quality product that customers do not want. What are the four essential managerial tasks?
How job tasks are formally divided grouped and coordinated is termed?Organizational structure defines how job tasks are formally divided, grouped, and coordinated.
What is the process by which a division of labor occurs as different workers specialize in tasks?What is the specialization of labor? Specialization of labor, or division of labor, occurs when companies divide their production or service process into several set tasks. Employees repeat a single portion of the production process rather than performing multiple tasks themselves.
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