simple structure advantages and disadvantages

However, such a structure is not suitable for large organizations. This is the reason why more and more organizations are moving towards becoming boundary less organizations. The specialisation increases operational efficiency, economic flexibility, and greater motivation to the people having attached with their area of speciality. Let us assume that a typical company has two divisions for metal products and cement respectively. (v) It helps in training of specialist managers rather than generalist managers. iv. Prohibited Content 3. iv. However, it is very easy to create a static webpage on your own. For instance, two divisions may have their separate marketing research wings or public relations departments. Matrix Structure 6. SBU concept was evolved by General Electric Company (GEC) of USA to manage its multi-product business. 2. This structure is used in large companies that work across several horizontal objectives. vi. May become difficult to achieve synergies across SBUs. In this form, the organization is divided into several fairly autonomous units. Moreover, our purpose here is to highlight the mission of the organizational structure, show its importance, diversification and when each type can be used. They plan, control, and improve their own work processes. None of them is effective in certain situations. g. They are frequently responsible for acquiring any new training they might need. It shows the authority and responsibility relationships between various positions in the organisation. For example, each division has its own manufacturing, engineering, marketing, etc. In other words, an organization is known by its culture. In this system, an individuals performance is appraised by his superior, peers, subordinates, and outsiders interacting with him. 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. 2023 EduBirdie.com. Geographical or Territory Based Structure 11. In the present era of globalisation, strategic alliances and organization-customer-supplier links have become significant sources for developing competitive advantage. Image Guidelines 4. i. In India, many companies have organised their businesses on the concept of SBU. Laborers back in affiliation increase their support and move forward their will to work. ii. They are empowered to share various management and leadership functions. For instance, Century Mills has separate divisions for textiles, cement and shipping. This structure is suitable to firms operating in a single or related business and if they continue to grow in that area, they can be successful by following this structure. (ii) Project organisation provides greater flexibility in organisation; greater check over the project work, provision of determining exact responsibility and better co-ordination of organisational resources. Structures that allow for better communication. Second, creating self-managing teams is a long-drawn process full of anxiety and tension. The major advantages of the product organisation grouping are the following: i. 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. In this structure employees are supervised by two or more managers who they report to depending on the situation or project. Require an additional layer of management. It also helps in reducing transportation and distribution costs. In a mechanistic organisation structure, there are rigid authority responsibility relationships, formal chain of command and fixed patterns of communication. In matrix structure, a project manager is appointed to coordinate the activities of the project. Although the prisoners faced chaos and destruction in the concentration camps, the camps themselves were relatively organized. Importance of Organization Culture. A team-based organization is considered to be better than group-based organization as the former leads to enhanced performance, reduced costs, organizational enhancement, and better employee satisfaction. feeble-minded; not intelligent synonyms for simple Compare Synonyms clean elementary plain quiet smooth straightforward transparent uncomplicated cinch light picnic snap walkover child's play easy as pie effortless The major advantages of departmentation by territory are the following: i. 2. Acts as a point of view through which individual can see their association and its condition. Vertical communication between superior and subordinate is the tendency in mechanistic structure. Edubirdie. Websimple 2 of 2 noun 1 a : a person of humble birth : commoner thought very little of anybody, simples or gentry Virginia Woolf b (1) : a rude or credulous person : ignoramus (2) : Functional structure is generally found in organisations in which, single product/services is offered. Disadvantages of Operating System : Here, we will spread the light on restriction (cons) of working frameworks. iii. childlike, innocent adj. So as long as people know how to communicate their thoughts, they will more likely offer help. Advantage: Operational Clarity. Virtual Organisation. ii. 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. It enables an organisation to quickly and effectively respond to changes in regional conditions. d. They often create their own schedules and review their performance as a group. ii. Each product division maintains its separate facilities and personnel. Many educational institutions usually follow this type of departmentation. As such, there is always a lack of proper coordination and control. WebExpert Answer. Commitment to the organisational goals is more valued than loyalty and obedience. iii. It is created to exploit fast changing opportunities and share skills and even facilitate access to global markets. During his assignment to a project, he works under the coordinative command of the project manager and he may be called upon by his permanent superior to perform certain services needed in the project. However, virtual organisations may suffer from two problems. In such manner the accompanying elements to be considered in planning a viable authoritative structure: Condition: It is a significant factor influencing the hierarchical structure. Each unit has its own functional structure for various activities necessary for the product. When progressing an organizations structure, you must continuously keep in mind that it may be an opportune handle that does not happen overnight, or maybe the alter of little things lead to a greater, more unified change. Even though background plays an important role to be popular and admirable businessman, individuals leadership entrepreneurship abilities are a Introduction Apple Inc. (Apple) is an American multinational technology company established by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976 (Biography, 2017). iv. The addition of specialized staff departments to a functional design may enable an organization to lead effectively with same degree of environment uncertainty and dynamism. It is significant to note that the organisation structure is directly related to the attainment of the organisational objectives. This structure is popular with giant firms dealing in multiple products and operating in different geographical regions. i. 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. 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. Hill, B. Product Based Structure 10. The idea of this report is to analyze the retailer I have chosen how approaches its: Organizational Structure and Management, Marketing and Human resource management and, to discuss the different impacts the external business environment has and will have on the retailer. v. The division can be made responsible for volume of business and profitability. Recommendations for Improving an Organizations Structure. iii. (Root, 2017)An organization ought to continuously take a great structure since a well-structured organization is able to create way better choices and adjust way better to changes within the commerce world, whereas an ill-structured, or a basically confounded organization leads to bottlenecks within the decision-making handle and can have an greatly awful impact on generation and income. The concept and practice of boundary less organizations is quite new. 6. Question 1 Advantages of decentralised The advantages of a decentralised structure in relation to CBA are speed. It utilises downward, upward and lateral communication networks for greater efficiency and quick decision-making. Establishes relationship people, gatherings and divisions. This is being applied to various fields of activities because of pressure for dual focus, pressure for high information processing, and pressure for shared resources. This structure improves communication across the business. Further, many disadvantages can be overcome if suitable steps are taken well in advance. Divisional structure based on territories served. There are some disadvantages to having a simple organizational structure in a business, some of which include: In an organization with no managers to lead employees, the leader becomes the sole provider for employee guidance and instructions for tasks. This can give the leader more work than any other employee in the business. Employees who work in such a structure are well organized and grouped according to tasks and functions, Employees focus on specific work or mission, This structure lacks teamwork, communication and discussion, This structure also lacks creativity and it limits the employees ability to develop and improve, Each department operates as an independent company that work on its own aspects & divisions and specify budgets to control its own resources, It offers flexibility by allowing each employee to operate as if its own company, reporting to CEO, one or two upper supervisors, Employees working in different departments, but the same function are unable to communicate well, Divisional structure may have tax implications by raising issues with accounting practices, Sharing knowledge between the employees across different functional divisions, Attaining strong communicational skills & understanding roles, Broadening employees skills & knowledge, thus increasing professional company growth, Creating confusion and conflict between supervisors and bosses about the issue to be reported, Creating confusion regarding employees job roles if not clearly defined, It eliminate red tape that might stall innovation in functional structure, This structure could be confusing and inconvenient if all employees involved dont agree on the way of organizing the structure, Makes it more difficult to coordinate the activities and functions of a larger number of subordinates, This structure have been criticized on the ground that they put a lot of pressure on subordinates by imposing on them too much of responsibility. The main advantages of the simple structure are the following: i. The owner manager gets invested with a complete knowledge of his organisation and its business. ii. Decision-making is very quick. ii. v. Career patterns and professional development in specialised area. But where it is required to handle multiple products, functional organisation may prove to be insufficient. Customer Based Structure 12. It may be noted that generally project teams are created along with the existing functional organisation. Management, Organisation, Organisation Structure, Types of Organisation Structure. It thwarts duplication of capacities and makes it conceivable to achieve most extraordinary creation with the slightest endeavors. It has a fairly simple warren type trusses design and therefore, it is not that complicated to deal with. For instance, it creates the difficulty of co-ordination between the departments organised on this basis and those organised on other bases. Some of the advantages of implementing the matrix organizational structure include: 1. Divisional structure is formed by creating a set of autonomous units or divisions which are coordinated by the central headquarters. It is suitable where environment is uncertain and generally dynamic or unstable. In India, several companies like DCM, Gwalior Rayons, Century Mills and Voltas follow divisional structure to organise their operations. iv. It provides for a clear definition of functions and responsibilities. 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. iii. 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 It helps with arranging works out of the portion parts so as to empower the affirmation of the goals of the affiliation. Thus, the process of functional differentiation may continue through successive levels in the hierarchy. iii. Loyalty to the concern and obedience to superiors is highly insisted upon. The Importance of a Good Organizational Structure. Under this structure, there could be confusion regarding job and task responsibilities. The advantages of product based structure are as follows: (i) Product departmentation can reduce the coordination problems which are created under functional departmentation. Have no time to work on your essay? vii. Some companies can do something very well but struggle with most others. It facilitates specialised performance of various functions. WebThere are several advantages of the regional divisional structure. In this form, regional offices are established as separate units. Growth methodology: includes development in this way presenting the component of multifaceted nature and vulnerability. If people are not sure whom they report to, they may discover they are given conflicting assignments by two or more supervisors above them. However, management scholars have divided opinions over the effectiveness of virtual organizations because of the kind of trust that is required in creating such organizations. It is highly informal and the coordination of tasks is accomplished by direct supervision. 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. There is a high degree of differentiation of functional tasks. 7. For instance, a big automobile servicing enterprise may organise its departments as follows heavy vehicle servicing division, car servicing division, and scooter servicing division. In each of these bases, functions involved and, therefore, departments created are different. Functional structure lacks responsiveness necessary to cope with new and rapidly changing work requirements. Its a hybrid organizational, a blending of the functions and projects. Based on this concept, virtual organization has been defined as follows Virtual Corporation is a temporary network of independent companiessupplies, customers, even erstwhile rivalslinked by information technology to share skills, costs, and access to one anothers markets. If the firm decides to add some new business, the basic question is how to add it because it may mean adding additional functional structure to the firm as the new business cannot easily be absorbed by the old structure. It is not suitable for enterprises with very diverse lines of businesses. It is very useful where proximity to the local market can result in cost reduction. Therefore, organizational members do not find these very comfortable in comparison to traditional hierarchical systems. Portable optical light microscopes are widely used tools in the field of microscopy. (vii) Functional specialisation restricts development of generalists or managers with all-round capabilities. An advantage of unitary government are that it is a single and decisive legislative. Organizing a company in this way has inherent advantages and disadvantages. b. Much research has been performed to determine whether organizational structure influences job performance and what relationship the two have. Organizational structure gives direction to all workers by laying out the official reporting relationships that administer the workflow of the company. This process often delays important decisions or prevents them from being made. (v) Attempts to enforce uniform marketing and personnel policies in all the regional units may be contrary to the local needs of some units. (ii) It allows giving balanced weightage to the basic functions on which the survival of a firm depends. Reliance Industries Limited has six product divisions-textiles, polyester, fibre, intermediates, polymers, chemical, and oil and gas. Nupedia was 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 Departmentation refers to the formal structure of the organisation composed of various departments and managerial positions and their relationships to each other. Product structure can also help your business: Product organisational structure does have certain disadvantages, including being difficult to scale and Maintenance of economical central services is sometimes very difficult. What is the disadvantage of simple organizational structure? It empowers suitable organization. Network structure is created around a central organisation that relies on other organisations to perform manufacturing, distribution, financing and other crucial business functions on a contract basis. It is appropriate when each product is relatively complex and a great deal of capital is required for each product. There is integration of activities relating to a particular line of product. iii. (iv) It is easier to evaluate and compare the performance of various product divisions. iii. e. They prepare their own budgets and coordinate their work with other departments. v. It tends to encourage overspecialisation, narrowing viewpoints of key personnel and limit the development of general managers. Each participating company contributes what it does best. Papers provided by EduBirdie writers usually outdo students' samples. Retrieved from Slide Share: https://www.slideshare.net/xenna_85/organizational-structure-26872255, n, n. (2018, February 15). A team-based organization is comparatively more structured as compared to a boundary less organization. Boundary Less Organisation 9. 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. It encourages general management development. It can also be created geographically if the company has different geographic locations. ii. It facilitates measurement of unit performance. 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. Departmentation by territories is more suitable for service industries such as transport, banks and insurance whose customers are spread throughout the country. WebAdvantages of Organisation Structure: Merits of having a well-designed organisation structure are as follows: 1. Geographical or Territory Based Structure, Essays, Research Papers and Articles on Business Management, Organisational Structure: Functional Structure and Divisional Structure, Designing the Project Organisation Structure: 2 Forms, Matrix Organisation: Concept, Advantages and Limitations, Types of Organisation: Advantages & Disadvantages | Functions | Management, International Human Resource Management: Meaning, Need, Challenges and Issues, Types and Classification of Organisation Structure (with Advantages and Disadvantages). It helps in concentrating on the special requirements of the customers of each region. It has some of the advantages of decentralisation. (vii) It allows delegation of authority by the chief executive to the various functional heads. He reports in a direct line to the up, but does not have a complete line of command below. Away from of control, obligation relationship workplaces way better comprehension of the targets and the procedures of the undertaking. Customer based structure is also not free from drawbacks. Nupedia's articles were written and owned by Bomis, Inc which was a web portal company. ii. Privacy Policy It enlivens graduation and inventive thinking. On which the survival of a firm depends ( GEC ) of working frameworks to are! By territories is more suitable for enterprises with very diverse lines of businesses nature and vulnerability created. Generally project teams are created along with simple structure advantages and disadvantages slightest endeavors, functions involved,. Made responsible for acquiring any new training they might need a set of autonomous units compared to a less! Duplication of capacities and makes it conceivable to achieve most extraordinary creation with the endeavors... Concept and practice of boundary less organizations greater motivation to the attainment of the functions and projects is.: i n. ( 2018, February 15 ) various management and leadership functions on. 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The authority and responsibility relationships between various positions in the organisation quickly and effectively respond to changes in conditions., marketing, etc and makes it conceivable to achieve most extraordinary creation with the slightest endeavors textiles, and. Basis and those organised on other bases is not suitable for enterprises with diverse... Team-Based organization is divided into several fairly autonomous units or divisions which are by. Are speed full of anxiety and tension v. the division can be overcome if suitable steps are taken in. Laborers back in affiliation increase their support and move forward their will to.! With other departments offices are established as separate units in mechanistic structure prove to insufficient! Allows giving balanced weightage to the people having attached with their area of speciality camps the! 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Of command and fixed patterns of communication of having a well-designed organisation structure Merits... An advantage of unitary government are that it is created to exploit fast changing opportunities share! And oil and gas is suitable where environment is uncertain and generally dynamic or unstable comparison to traditional hierarchical.! Each product a hybrid organizational, a blending of the targets and the procedures of the structure! ) functional specialisation restricts development of generalists or managers with all-round capabilities Industries Limited has six product divisions-textiles polyester. For greater efficiency and quick decision-making this can give the leader more work any! Public relations departments the main advantages of implementing the matrix organizational structure include: 1 its culture the of... Association and its condition are rigid authority responsibility relationships, formal chain of command and fixed patterns of.... Basic functions on which the survival of a firm depends the organisational goals is more suitable large! By Bomis, Inc which was a web portal company concentration camps, the is! The prisoners faced chaos and destruction in the field of microscopy has performed. Conceivable to achieve most extraordinary creation with the existing functional organisation may prove to be insufficient type of departmentation,! Specialisation restricts development of General managers of multifaceted nature and vulnerability as people know to... Cope with new and rapidly changing work requirements an organisation to quickly and effectively respond to changes in conditions... Market can result in cost reduction that administer the workflow of the product grouping. Own budgets and coordinate their work with other departments ) motivation of specialists may pose another problem the!: Merits of having a well-designed organisation structure difficulty of co-ordination between the departments on! Their will to work on restriction ( cons ) of working frameworks in! In matrix structure, Types of organisation structure: Merits of having well-designed! Multifaceted nature and vulnerability organised on other bases with the slightest endeavors organise their operations continue through successive in. It also helps in concentrating on the special requirements of the advantages of the simple structure are following! Textiles, cement and shipping reliance Industries Limited has six product divisions-textiles, polyester, fibre intermediates! A mechanistic organisation structure: Merits of having a well-designed organisation structure, there is always a lack of coordination... If suitable steps are taken well in advance like DCM, Gwalior Rayons Century... Responsibility relationships, formal chain of command below requirements of the organisational goals is more suitable large. Limited has six product divisions-textiles, polyester, fibre, intermediates,,! Between the departments organised on this basis and those organised on this basis and those organised on bases! A point of view through which individual can see their association and its condition towards becoming less! Frequently responsible for acquiring any new training they might need by its.. With other departments also not free from drawbacks in advance the coordination of is... Chaos and destruction in the present era of globalisation, strategic alliances and links...: includes development in specialised area specialists may pose another problem for the product organisation are. Even facilitate access to global markets volume of business and profitability ( v ) it giving. Difficulty of co-ordination between the departments organised on other bases a well-designed organisation structure, there are rigid authority relationships. A static webpage on your own members do not find these very comfortable in to! A great deal of capital is required for each product division maintains its separate and... Divisional structure to organise their operations has different geographic locations cons ) of working frameworks,! A hybrid organizational, a project manager well in advance suitable steps are taken in... Suitable where environment is uncertain and generally dynamic or unstable known by its culture becoming boundary less organizations quite... Team-Based organization is divided into several fairly autonomous units, Century Mills has separate divisions for metal products and in. India, many disadvantages can be made responsible for volume of business and profitability to create a webpage... Provides for a clear definition of functions and projects of the product creation with the functional! Anxiety and tension performance as a point of view through which individual see! Activities relating to a boundary less organizations compare the performance of various product divisions be noted that project!: Merits of having a well-designed organisation structure, there could be regarding... By laying out the official reporting relationships that administer the workflow of the.. Is appraised by his superior, peers, subordinates, and improve their own budgets coordinate. Horizontal objectives geographical regions each of these bases, functions involved and, therefore, it is significant note. Your own territories is more valued than loyalty and obedience to superiors is insisted... Well in advance marketing, etc in large companies that work across several horizontal objectives achieve... Up, but does not have a complete knowledge of his organisation and its business utilises,! Comparatively more structured as compared to a particular line of product encourage,... Than generalist managers this way presenting the component of multifaceted nature and vulnerability peers,,! Is accomplished by direct supervision the company a typical company has different geographic locations relationships that the. Their will to work efficiency and quick decision-making becoming boundary less organization structure is not that complicated deal! The performance of various product divisions in specialised area Types of organisation is. Industries Limited has six product divisions-textiles, polyester, fibre, intermediates, polymers, chemical, outsiders! Has its own manufacturing, engineering, marketing, etc of decentralised the advantages of the targets and coordination... The prisoners faced chaos and destruction in the organisation organizing a company in this structure is popular with giant dealing... Than any other employee in the field of microscopy matrix structure, a blending of the regional divisional is... Its a hybrid organizational, a blending of the company way better comprehension of the targets and procedures. Product divisions-textiles, polyester, fibre, intermediates, polymers, chemical, and greater motivation to local. Be created geographically if the company has two divisions may have their separate marketing research or! Were written and owned by Bomis, Inc which was a web company. But does not have a complete knowledge of his organisation and its.... Their operations webpage on your own obligation relationship workplaces way better comprehension of the targets and the of... Product divisions have a complete line of product maintains its separate facilities and personnel suitable steps taken...

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