Differences, Advantages, Disadvantages of the Various Systems of Organisations
Report on the differences, advantages, disadvantages of the various systems of organisations. Cover the mechanistic, human relations and systems approaches I have chosen for my report three types of organisations: functional, divisional and matrix. Functional organisation is considered to has many characteristics of a mechanistic structure while divisional and matrix organisation have many characteristics of an organic management structure. So will be more difference between functional organisation and the other two then between divisional and matrix.
Functional organisation is more a centralized structure mean while divisional and matrix are descentralizated structures. In a functional structure the employees work separately while in divisional and matrix structures the employees work as a team. Functional organisation responds very slowly to change while others two organisations respond quickly to change.
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Divisional and matrix organisation respond to the needs of their employees while functional organisation don’t entirely respond to their needs.
In a matrix structure, the employee may reports to two different authorities, while in a divisional and functional structure the employee reports to the only one authority. Functional structure is a classic organizational structure where the employees are grouped hierarchically, managed through clear lines of authority, and report ultimately to one top person. Advantages 1. Offers a high level of specialization. 2. A worker who is an expert in his functional area can perform tasks with a high level of speed and efficiency, which enhances productivity. 3. Establishes a very concrete chain of command.
Disadvantages 1. There are several barriers in communication and overall cooperation and coordination. 2. Has rigid and separate chains of command. This causes a slowly change to the environment. 3. Members of functional departments become overspecialized and neglect the larger view of the company and its objectives. 4. Departments may have difficulty working together. Divisional structure is a type of organizational configuration that groups together those employees who are responsible for a particular product type or market service according to workflow.
Advantages 1. Has a greater flexibility in responding to environment changes. 2. The employees have the opportunity to learn new skills beyond their own area of expertise. 3. The structure has clear aims and goals. 4. Decisions are made quickly. 5. Responds to the needs of their employee. Disadvantages 1. Too much decentralization can cause the neglect of company’s goals. 2. Among operating units can be unhealthy rivalries. 3. There are increased cost because of duplicated resources and effort across divisions.
Matrix structure is an organizational structure that facilitates the horizontal flow of skills and information. It is used mainly in the management of large projects or product development processes, drawing employees from different functional disciplines for assignment to a team without removing them from their respective positions. Advantages 1. Communication is enhanced both laterally and vertically. 2. Can allow individuals to use particular skills within a variety of contexts. 3. Involvement of members in decision-making enhances commitment and motivation. . There is a clear and workable mechanism for coordinating work across functional lines. 5. Individuals and as well as equipment can be shared across projects. Disadvantages 1. Conflicts occur because boundaries of authority and responsibility overlap. 2. Competition over scarce resources especially when personnel are being shared across projects. 3. The dual authority and communication problems may cause division among employees and managers. 4. There are unclear roles and responsibilities.