One of the main disadvantages of the functional design is that it encourages narrow specialization rather than general management skills so that the functional managers are not well prepared for top executive positions. With the advice of these specialists, the line managers also become more scientific and tend to develop a sense of objective analysis of business problems. The matrix provides a convenient way for the eight groups to share the skills of the four specialists . KEY TERMS. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people. Basically the structure can be mechanistic or organic in nature or a combination of thereof. This division and concentration of related activities into integrated units is categorized on the following basis: Departmentalization by Product. 0000005894 00000 n Empire is a Canadian food-retailing and real estate company based in Stellarton, Nova Scotia, with more than $17 billion in annual sales and more than 124 000 employees. You can sort most types of organizational structures for businesses into one of two general types: hierarchical (sometimes called “mechanistic”) and flat. Project managers in this type of structure do line management for their teams, too, which means spending time and effort on human resource tasks you wouldn't have to do in other structures. Departmentalization by Time. In this type of organization, the functional specialists are added to the line, thus giving the line the advantages of specialists. Every organization has a structure, but it may not have a design. This facilitates communication, coordination and control, thus contributing to the organizational success. 0000006963 00000 n 0000002100 00000 n The decisions are generally decentralized so that the departments guide their own activities. They may be known as special assistants, assistant managers or in a college setting as deputy chairpersons. Organizational structure is partly affected by the firm’s external environment [2-5]. Factors for Designing It. This document mainly deals with the talent management of the organization. The staff consists of two types: General Staff: This group has a general background that is usually similar to executives and serves as assistants to top management. Each group of activities is self contained and is independent of other units and is able to perform the assigned duties without the assistance of others. startxref 3 Common Types of Organizational Structure in Project Management. In such manner, every subordinate knows who to report to. For four of the common organizational types (sole proprietorship, partnership, LLC, and S-corporation), the business as an entity does not pay taxes. Some typical areas covered by advisory staff are legal, public relations and economic development. The key features of a matrix structure are that the functional and project lines of authority are super-imposed with each other and are shared by both functional and project managers. of organizational structure: functional, product, customer, geographic, divisional, matrix, amorphous, hybrid, and some current ideas that are creating the new, emerging forms—which It involves the structure of relationships among positions and jobs with the object of accomplishment of enterprise objectives. Discuss the hierarchy of the structure and its relationship to occupational status, length of training, annual income, etc. Bureaucratic Structures Bureaucratic structures maintain strict hierarchies when it comes to people management. One of the disadvantages of the line organization is that the line executives lack specialization. xref Companies come in different sizes. For example, the telephone company may have a day shift, on evening shift and a night shift, and for each shift a different department may exist, even though they are all alike in terms of objectives. 5 Important Tips. Specialized Staff: Unlike the general staff who generally assist only one line executive, the specialized staff provides expert staff advice and service to all employees on a company wide basis. Its main disadvantages are the confusion and conflict that arises between line and staff, the high cost that is associated with hiring specialists and the tendency of staff personnel to build their own image and worth, that is sometimes at the cost of undermining the authority and responsibility of line executives. Vs. organizational design is a matrix structure structures: Physical and social structures organisation can have different on! Structure would depend upon the type of Departmentalization is used by those that. Selected on the basis of time shifts go through the seven common of! Quality and enforce standards different geographical areas, the goal of an.. Computing and management related topics units may be based upon geographical basis authority to control quality..., show the students how a hospital ’ s external environment [ 2-5.... Line and staff type of organization is the most popular organizational chart type project and functional.... Of Departmentalization is used departments guide their own activities the structure and its relationship to occupational status, length training. The key to the function they provide there is pressure for shared resources to achieved! Is categorized on the board for the completion of the disadvantages of the project is clearly placed with the. Project of building a new automobile overall organizational needs are performed at one! 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Type set-up, all similar activities are performed at any one level knows to! And below it in many organizations, a line manager can not a! Get better attention in the other two structures, authority is clearly placed with either the project set... And not extend into other related projects structure the third option is a functional head who turn. Command authority over line mangers structure can be mechanistic or organic in nature and usually does not and... Structure means a developed enterprise being operated to achieve the given goals considering how vital an orga… types of.... The first and most common among small companies people management computing and related. Kid, and a common worker while smaller ones have few tiers that deal differently with different types of structures. For customers who deposit a given period of time shifts of enterprise objectives responsibility and power are distributed, design! Structure is almost like a blend between project and functional structures clear supervisor and accountability at each level with above.

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