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Describe three organizational designs

      

Describe three organizational designs

  

Answers

Faith
1.Functional Organization
In a functional organization, authority is determined by the relationships between group functions and activities.
Functional structures group similar or related occupational specialties or processes together under the familiar headings of finance, manufacturing, marketing, accounts receivable, research, surgery and photo finishing. Economy is achieved through specialization. However, the organization risks losing sight of its overall interests as different departments pursue their own goals.

2.Divisional Organization
In a divisional organization, corporate divisions operate as relatively autonomous businesses under the larger corporate umbrella. In a conglomerate organization, divisions may be unrelated. Divisional structures are made up of self-contained strategic business units where each produces a single product. For example, General Motors’ divisions include Chevrolet, Oldsmobile, Pontiac, and Cadillac. A central headquarters, focusing or results, coordinates and controls the activities, and provides support services between divisions. Functional departments accomplish division goals. A weakness however, is the tendency to duplicate activities among divisions.

3. Matrix Organization
In a matrix organization, teams are formed and team members report to two or more managers. Matrix structures utilize functional and divisional chains of command simultaneously in the same part of the organization, commonly for one-of-a-kind projects. It is used to develop a new product, to ensure the continuing success of a product to which several departments directly contribute, and to solve a difficult problem. By superimposing a project structure upon the functional structure, a matrix organization is formed that allows the organization to take advantage of new opportunities. This structure assigns specialists from different functional departments to work on one or more projects being led by project managers. The matrix concept facilitates working on concurrent projects by creating a dual chain of command, the project (program, systems, or product) manager and the functional manager. Project managers have authority over activities geared toward achieving organizational goals while functional managers have authority over promotion decisions and performance reviews. Matrix organizations are particularly appealing to firms that want to speed up the decision-making process. However, the matrix organization may not allow long-term working relationships to develop. Furthermore, using multiple managers for one employee may result in confusion as to manager evaluation and accountability. Thus, the matrix system may elevate the conflict between product and functional interests.


Titany answered the question on September 20, 2021 at 09:40

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