Organizing for Success
Structural Types
Simple structure:
A simple structure can be thought of as no formal structure at
all. In a simple structure the organizati...
The Functional structure:

As firms grow , excessive demands may be placed on the ownermanager in order to obtain and proc...
Advantages:
well-defined channels of communication and authority/responsibility
relationships.
improve productivity by min...
A multi Divisional structure:(M-form)
It is built of separate divisions on the basis of
products, services or geographical...
The Divisional structure- Disney in the 1990’s
Divisional structure:
Because managers in large companies may have difficulty
keeping track of all their company's product...
A holding Company Structure:

An investment company consisting of shareholdings in a
variety of separate business operatio...
The matrix structure:

A matrix structure is a combination of structures
which could take the form of product and geograph...
This structure not only increases employee
motivation, but it also allows technical and general
management training across...
Drawbacks:
The two-boss system is susceptible to power struggles,
as functional supervisors and team leaders vie with one
...
Network Structure:
Project
Group
Region
A

Function
X
Corporate
Headquart
er
Function
Y

Region
B
Project
Group
The network structure is most suited to
organizations that faces a continually changing
environment, requiring a quick res...
Team- based structures

A team based structure attempts to combine both
horizontal and vertical coordination through
struc...
The team structure has many potential advantages,
including the following:
Intradepartmental barriers break down.
Decision...
Project- based structures

A project –based structure is one where teams are
created, undertake the work and are then diss...
Structural types
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Structural types

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Structural types

  1. 1. Organizing for Success Structural Types
  2. 2. Simple structure: A simple structure can be thought of as no formal structure at all. In a simple structure the organization is run by the personal control of an individual. Owner MANAGER Employees Characteristics: Usually found in small businesses Little division of management responsibility and formal processes are missing. The main problem here is that the organization can operate effectively only up to a certain size, beyond which it becomes too cumbersome for one person to control the same.
  3. 3. The Functional structure: As firms grow , excessive demands may be placed on the ownermanager in order to obtain and process all the information necessary to run a business. Chances are that a owner will not be skilled in all specialties to run a growing business. Such growth in the overall scope and complexity of the business necessitates a functional structure wherein the major functions of the firm are grouped internally and led by a specialist. A functional structure is based on the primary activities that have to be undertaken by such an organization such as finance and accounting, production, marketing, human resources management, etc.
  4. 4. Advantages: well-defined channels of communication and authority/responsibility relationships. improve productivity by minimizing duplication of personnel and equipment, and simplifies training as well. Disadvantages: The functional structure can result in narrowed perspectives because of the separateness of different department work groups. Decisions and communication are slow to take place because of the many layers of hierarchy. Authority is more centralized. The functional structure gives managers experience in only one field—their own. Managers do not have the opportunity to see how all the firm's departments work together and understand their interrelationships and interdependence. In the long run, this specialization results in executives with narrow backgrounds and little training handling top management duties.
  5. 5. A multi Divisional structure:(M-form) It is built of separate divisions on the basis of products, services or geographical areas.
  6. 6. The Divisional structure- Disney in the 1990’s
  7. 7. 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. 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.
  8. 8. A holding Company Structure: An investment company consisting of shareholdings in a variety of separate business operations. These subsidiaries may operate independently, have other shareholders and retain their original company names. The parent company limits decisions to the buying and selling of subsidiaries with little involvement in their product or market strategy. Holding companies are extremely flexible, with the ability to bring in outside shareholders as partners and to buy and sell their subsidiaries as conditions change . However they are hard to control, because of the hands-off management style and the rights of outside shareholders
  9. 9. The matrix structure: A matrix structure is a combination of structures which could take the form of product and geographical divisions or functional and divisional structures operating in tandem
  10. 10. This structure not only increases employee motivation, but it also allows technical and general management training across functional areas as well. Potential advantages include: Better cooperation and problem solving. Increased flexibility. Better customer service. Better performance accountability. Improved strategic management.
  11. 11. Drawbacks: The two-boss system is susceptible to power struggles, as functional supervisors and team leaders vie with one another to exercise authority. Members of the matrix may suffer task confusion when taking orders from more than one boss. Teams may develop strong team loyalties that cause a loss of focus on larger organization goals.
  12. 12. Network Structure: Project Group Region A Function X Corporate Headquart er Function Y Region B Project Group
  13. 13. The network structure is most suited to organizations that faces a continually changing environment, requiring a quick response, high level of adaptability and strong innovation skills. Advantages: ●High level of flexibility to change structural arrangements ●Permits concentration of core competencies ●Adapt to cope with rapid environmental change Disadvantages: ●Loss of control and lack of coordination ●Risks of overspecialisation ● High costs of duplication
  14. 14. Team- based structures A team based structure attempts to combine both horizontal and vertical coordination through structuring people into cross- functional teams
  15. 15. The team structure has many potential advantages, including the following: Intradepartmental barriers break down. Decision-making and response times speed up. Employees are motivated. Levels of managers are eliminated. Administrative costs are lowered.     The disadvantages include: Conflicting loyalties among team members. Time-management issues. Increased time spent in meetings.
  16. 16. Project- based structures A project –based structure is one where teams are created, undertake the work and are then dissolved

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