Uploader Agreement. Functional structure is created by grouping the activities on the basis of functions required for implementing the strategy. Each division caters to different customers and has different types of competition. (iv) There will also be problems in providing centralised services to various departments which are located in different regions. iii. Convenient 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 They are empowered to share various management and leadership functions. The benefits of structure based on customers are as follows: (i) Customer departmentation can focus on the special needs of different kinds of customers. All rights reserved A (ii) It employs personnel with special abilities for meeting different customer requirements. It facilitates product expansion and diversification. In India, many companies have diversified into unrelated businesses and have found functional structure quite unsuitable for them. Arranging the structure guarantees there are sufficient human resources with the proper aptitudes to achieve the companys objectives, and ensures that duties are clearly characterized. Separate strategic and operational control, iii. Utilization of approaches and the achievement of the targets gotten to be less complex. Various leveled structure sets down the two channels and the cases of correspondence. Choice making for an organization is as a rule spared for the administrators of the organization. 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) : A simple structure is a fundamental organizational structure that does not have different layers of management. WebWin Win! For instance, two divisions may have their separate marketing research wings or public relations departments. Boundary less organization has self-managing teams but it differs from a team-based organization. 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. Small-business proprietors ought to start considering a formal structure early within the development stage of their business. It requires decision making through the levels of organization and flattens out the vertical appearance of a hierarchy. 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. Papers provided by EduBirdie writers usually outdo students' samples. Although the prisoners faced chaos and destruction in the concentration camps, the camps themselves were relatively organized. 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. Later, many organizations have moved from these bases to create divisions on the basis of strategic business units. 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. 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 design enhances coordination and control within each of the functional area. Each department functions as a stand-alone unit. Found in laboratories both large and small, as well as schools and colleges, they are a simple and elegant solution that helps scientists peer into the microscopic world and reveal structures invisible to the naked eye. However, the functional structure does not work very efficiently once the firm takes up diversification as the new activity may be quite different from the old one and may require different perspective which may not be adequately provided by functional structure. Expert Answer. Enhances ability to respond quickly to changes in external environment. This is appropriate specially when each product is relatively complex and large amount of capital is required for each product. 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. The activities of the individuals and the groups will become It has some of the advantages of decentralisation. Under this structure, there could be confusion regarding job and task responsibilities. The main benefit of this structure is that large area of building is covered. though product lines can be added and dropped easily without dislocating the existing operations. v. Retains functional specialisation in each SBU. A boundary less organization, the term coined by Jack Welch, former chairman of GE (USA), seeks to eliminate vertical and horizontal boundaries in the organization as well as the boundaries between the organization and its customers and suppliers. 3 disadvantages of a functional structure. vi. The thickness of these structures is very less as compared to its width and length. WebWikipedia began as a related project for Nupedia.Nupedia was a free English-language online encyclopedia project. Specialists get higher satisfaction while working on complex projects. It tends to overburden the senior managers with routine matters. It is essential for the employees to adjust well in the organization culture for them to deliver their level best. ii. Moreover, our purpose here is to highlight the mission of the organizational structure, show its importance, diversification and when each type can be used. So as long as people know how to communicate their thoughts, they will more likely offer help. The specialisation increases operational efficiency, economic flexibility, and greater motivation to the people having attached with their area of speciality. They offer day courses, evening courses and correspondence courses to meet the requirements of different types of students. This structure presents increased problems of top management control. i. All the authority and decision-making is concentrated in the owner manager who often directly supervises all the activities. Self-managing teams have the following characteristics: a. Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions. Its a hybrid organizational, a blending of the functions and projects. Though some of these problems may be overcome by installing appropriate security devices, computer networks do not remain fully safe. The work culture gives an identity to the organization. Each participating company contributes what it does best. According to Burns and Stalker, Organic structure is one that is characterised by high degree of decentralisation and flexibility and under which individuals are more likely to work in a group setting rather than alone. In an organic structure, the organisational members communicate across all levels of the organisation to obtain information. Committee Organisational Structure Features: (a) Formed for managing certain problems/situations. Advantage: Operational Speed. Further, a boundary less organization differs from a virtual organization in the sense that the former is a kind of structure that an organization may adopt while the latter is an alliance between two or more organizations to achieve certain specified objectives. It is very useful where it is desired to introduce specialisation in the performance of various functions like production, finance, marketing, etc. iv. 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. A simple structure is a fundamental organizational structure that does not have different layers of management. Boundary less organizations use computer networks extensively. Since these activities may be divided and assigned in different ways, there are many forms of organization structure. For example, for new product development, no functional department is created but a multidisciplinary team is created that works on a single process. All rights reserved, The Relationship Between Organizational Structure And Job Performance, Organizational Structure And Behavior For Dunkin' Brands, Organizational Structure For Hardware Shack, Organizational Structure: Management, Marketing And Human Resource Management, AJS Organizational Administration In Justice And Security, The Organizational Structure Of Nazi Concentration Camp, Organizational And Management System Of Nike Company, Apple's Organizational Culture And Structure, Motivation And Leadership In Different Organizational Structures. 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