Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading content…
Loading…
Transcript

Traditional Organization Structures

Agenda

Overview

FUNCTIONAL

DIVISIONAL

MARTIX

  • Traditional principle of organizing - performance improves when people are grouped together

  • Departmentalization - process of grouping together people and jobs into work units
  • Three types: Functional, Divisional, Matrix
  • Introduction to departmentalization
  • Three traditional organization structures
  • Application of structures

Divisional

Matrix

Functional

  • Structures where people are grouped together with others who have similar skills and perform similar tasks

  • Members of these groups share expertise, interests, and responsibilities

Groups together people, who work on the same product and process, serve customers of similarity and are located in the same geographical area.

• The matrix structure combines functional and divisional project or program teams

• Workers in a matrix structure belong to at least two formal groups at the same time

• Matrix structures can be found in settings such as manufacturing, service industries, service industries, and the non-profit sector

Advantages

• Efficient use of resources

• Task assignments consistent with expertise and training

• High-quality technical problem solving

• In-depth training and skill development

• Clear career paths within functions

• Better cooperation across functions

• Improved decision making

• Increased flexibility

• Better customer service

• Better performance accountability

• Improved strategic management

  • Clear points of responsibility for products and delivery
  • Improved coordination across functional departments
  • Greater ease in changing size by adding or deleting divisions
  • More flexibility in responding to environmental change
  • Expertise focused on specific customer, regions and products

Disadvantages

• Difficulties in pinpointing responsibilities

• Functional chimneys problem (lack of communication and coordination)

• Susceptible to power struggle

• Two boss system may become frustrating to team members

• Team meetings may become time consuming

• Teams may develop "groupitis"

• Requirements of adding team leaders to the structure may create increased costs

• Sense of cooperation and common purpose break down

• Narrow view of performance objectives

• Excessive upward referral of decisions

Learn more about creating dynamic, engaging presentations with Prezi