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Vertical Functional Structure

People are grouped together in departments by common skills and work activities, such as in an engineering department and an accounting department.

Divisional Structure

Departments are grouped together into separate, self-contained divisions based in a common product, program, or geographical region. Diverse skills rather than similar skills are the basis of departmentalization.

Matrix Structure

Types of Departmentalisation

found in organisations:

Vertical Functional

Divisional

Matrix

Team based

Network

Cons

Poor Communications across functional departments

Slow response to external change, laggin innovation

Decision concentrated at top of hierarchy, creating delay

Pros

Efficient Use of resources; Economies of scale

In depth skill specializations and development

Top manager direction and control

Departmentalisation is the basis on which

individuals are grouped into departments

and departments into the total organisation

Departmentalisation

Cons

Duplication of recourses across divisions

Less technical depth and specialization

Poor coordination across divisions

Pros

Fast response, flexibility in unstable environment

Fosters concern for customer needs

Excellent coordination across functional departments

The Matrix is a hybrid structure in which two or more forms of departmentalization are used together.

In the matrix structure:

  • employees report to two bosses
  • There is much more cross-functional interaction than other forms of Departmentalization.
  • It also requires significant coordination between managers in the different parts of the matrix.

The most common forms of Matrix Departmentalisation's are used in Product and Functional forms

There are also two (2) types of Matrix Departmentalisation:

Simple - managers in different parts of the matrix negotiate conflicts and resources directly

and

Complex Matrix - specialized matrix managers and department are added to the organizational structure; managers from different parts of

the matrix might report to the same matrix manager, who helps them sort out conflicts and problems

Matrix Structure

Pros

More efficient use of recourses than single hierarchy

Flexibility, adapt ability to changing environment

Interdisciplinary cooperation, expertise available to all divisions

Cons

Frustration and confusion from dual chain of command

High conflict between two sides of the matrix

Many meetings, more discussion than action

Team Based Structures

Characteristics of Organising

The organization creates a series of teams to accomplish specific tasks and to coordinate major departments.Teams can exist from the office of the president all the way down to the shop floor.

Pros

Reduced barriers among departments, increased compromise

Shorter response time, quicker decisions

Better morale, enthusiasm from employee involvement

Cons

Dual loyalties and conflict

Time and resources spent on meetings

Unplanned decentralization

Network Structures

A network organisational structure is a system of allocation and the coordination of tasks between

more than one organisation, which is aimed at producing a good or service.

A network organisational structure usually involves more than one organisation working together to produce a particular product. It allows a business to partner with others in the achievement of its goals and objectives.

Please take 2 minutes to watch this video

According to Daft (2003), Organising can be defined as

the deployment of organisational resources

to achieve strategic goals.

WHAT IS ORGANISING ?

DISCUSSION

‘It is what you do before you do something;

so that when you do it, it is not all mixed up’

Functional Departmental structures are no longer the most

appropriate structures for today’s forward thinking organisation,

when compared with Matrix and Team based structures.

Do you agree?

GOT IT?

FUNCTIONS OF MANAGEMENT

LEARNING OBJECTIVES:

On completion of this workshop you should be able to:

▪ Discuss the fundamental characteristics of Organising

▪ Understand what Departmentalisation is

▪ Identify the five (5) types of Departmentalisation & their

pros and cons

▪ Decipher whether functional structures are more appropriate

than matrix and team based structures in today's society

PRESENTERS

Tamika Smith

Sheldon Thomas

Zaid Hamil

Organising

Workshop 101

Smith, Thomas & Hamil Consultants Limited

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