Advantages and Disadavantage

 advantages and disadvantages:

there are three major organizational structures:

1. Functional Structure:

 Functional structure groups together people with similar skills who perform similar tasks.

 ADVANTAGES of functional structure:

- it results in economies of scale with efficient use of resources.

- task assignments consistent with expertise and training.

-it assists in high quality technical problem solving.

- it helps in providing in-depth training and skill development within functions.

-Functional structures also provide clear career path within functions.

 Disadvantages of functional structure:

-this structure makes it difficult to identify the specific responsibilities and evidently results in their being problems as the organization's grows.

-functional structure can result in their being a functional chimney. Functional chimney results in their being a lack of communication and coordination across functions. This evidently results in their being lack of INTERDEPARTMENTAL coordination.

-there is the duplication of resources and efforts across division.

 DISADVANTAGES:

-there is the duplication of resources and efforts across division.

-there would be competition and poor coordination across divisions.

-emphasis divisional goals at expense of organizational goals.

3. MATRIX STRUCTURE:

 The matrix structure combines functional and divisional approaches to emphasize project or program teams.

 The matrix structure is used in manufacturing, service industries, professional fields and not-for-profit organizations.

 This structure is common for organizations pursuing growth strategies in dynamic and complex environments.

 ADVANTAGES:

-better interfunctional corporation in operations and problem solving.

-increased flexibility in adding, removing and/or changing operations to meet changing demands.

-better customer service is provided since there is always a program, product or project manager who is fully informed.

-there is improved decision making as problem solving takes place

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