Organizational Structures Discussion

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Organizational Structures

Today’s business world has many challenges, these challenges have proved to make a huge impact, both negative and positive, on how well the organization operates. There exists several ways in which an organization can be structured to reduce these challenges all depending on both the financial and operational needs of the business. Here are a few models of horizontal in which current business have adopted to successfully operate their business. In a functional organization, jobs are specialized and grouped depending to business functions and the skills they require: production, marketing, human resources, research and development, finance, accounting etc. There are several advantages to functional organization they range from effective monitoring the environment of the business to simplified and effective levels of communication. The disadvantages to functional organization are that people may care more about their own function than about the company as a whole, and their attention to functional tasks may make them lose focus on overall product quality and customer satisfaction. A matrix organization is a hybrid form of organization in which functional and divisional forms overlap. Managers and staff report to two bosses a functional manager and a divisional manager. As a result matrix organizations have a dual rather than a single line of command. Some of the advantages to this matrix organization are:
Resource utilization is efficient because key resources are shared across several important programs or products at the same time.
With decisions delegated to appropriate levels, higher management levels are not overloaded with operational decisions.
Extensive communications networks help process large amounts of information.
Some of the disadvantages are:
Confusion can arise because people do not have a single superior to whom they feel primary responsibility.
The design encourages managers who share subordinates to

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