Advantages and disadvantages of divisional organisational structure?
Divisional structure: Divide the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division. Divisional structure divides the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, equipments, maintenance..etc. Advantages this structures allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. Disadvantages: This structure results in duplication of resources because, for example we need to have equipment , for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions Divisional structure: Divide the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division. Divisional structure divides the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, equipments, maintenance..etc. Advantages this structures allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. Disadvantages: This structure results in duplication of resources because, for example we need to have equipment , for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions
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First To Answer (Luke and Arran) , its all wrong. In the matrix structure, the personnel and other resources that a project manager requires are not permanently assigned to t…he project, but are obtained from a pool controlled and monitored by a functional manager. Personnel required to perform specific functions in a particular project are detailed for the period necessary, and are then returned to the control of he functional manager for reassignment. Discipline supervisors are responsible for the efforts of the groups constituting assigned project personnel and for other required resources. The members of the groups and their supervisors are charged with the timely completion of the different tasks and are responsible to the project manager and the functional manager. Example: An engineer assigned for a specific period to design a subsystem of a project is responsible to the functional manager for completing the task as scheduled, and to the project manager for providing an acceptable design. The two managers report to a matrix executive. The project manager in the matrix works with the functional manager to establish the resource requirements and their timetable utilization on the project, and to work out the revisions required as the project effort proceeds. The functional manager is responsible for assuring that resources are utilized in the manner best serving the interests of the organization. The formal role of the matrix executive or top-level management is similar to the top subordinate to the position. The general manager is literally on top of or outside the basic matrix structure and therefore should have a clear perspective of all activities and personnel within the matrix. Here, however, the similarity ends. The general manager leads a dual command structure, the functional and the project hierarchies, which must be balanced through a careful blend of autocratic and cooperative managerial styles. Participation is required, for example, in the arbitration of technical disputes and in resource allocations. Autocracy is essential to the establishment, enforcement, and revision of priorities among and between the functional and project entities within the matrix. This role involve the three major managerial concerns: Â· balancing power - The balance of power involves allocating both project and functions budgets, orchestrating personnel assignments, and applying schedule pressures and others. Â· managing the decision context - Management of the decision context is accomplished by establishing strategy, policy, and control systems to assure that decisions are made to benefit the overall organization rather than the individual functional department or project. Â· setting standards - High performance standards start at the top. They must established and enforced by the general manager, since his is the only position in the matrix with the perspective and power to require top quality performance. Advantages of the matrix organization Â· It attempts to retain the benefits of both structures ( functional organization and project team structure ). Â· Coordinates resources in a way that applies them effectively to different projects. Â· Staff can retain membership on teams and their functional department colleagues. Disadvantages of the matrix organization Â· Potential for conflict between functional vs. project groups. Â· Greater administrative overhead. Â· Increase in managerial overhead
Divisional structure of organization means split activities accordance with product, services and geographical. . Product structure groups employees together based upon sp…ecific products produced by the company. An example of this would be a company that produces three distinct products, "product a", "product b", and "product c". This company would have a separate division for each product.. Market structure groups employees together based upon specific markets in which the company sells. When I worked at the ISP, we also used a form of market structure. We sold internet access to individual consumers and business customers. So the sales and customer service departments were organized using market structure. Consumer sales and consumer customer service worked together, and corporate sales and corporate customer service worked together.
Four advantages of a product based organisation (briefly listed) (i) This structure gives focus on individual products, which may be especially appropriate if different pro…ducts have different problems and concerns. (ii) Each group can be run as a separate profit centre. This way, healthy competition and rivalry can develop between 'teams' which can help motivation and productivity. (iii) It is also flexible in that poorly performing groups can be closed down without too much disruption to the rest of the organization. (iv) These smaller profit centres allow for rapid decision making and greater independence In addition, using a product organization structure is most common in companies such as retail stores. These organizations will separate out their products by group, such as apparel, appliances, food or electronics. This helps owners and managers run their operations more efficiently (so thats probably another advantage; efficiency
FUNCTIONAL STRUCTURE . Salient points: Â· Functional structures typically work well for smaller and less complex organizations dealing with only one or a few products or …services. Â· Also work best in relatively stable environments that allow organizations to pursue consistent strategies.. Major Advantages of Functional Structure:. The major potential advantages include: Â· economies of scale with efficient use of resources Â· task assignments consistent with technical training Â· high quality technical problem solving Â· in-depth training and skill development within functions Â· clear cut career paths within functions. Major Disadvantages of Functional Structure:. Include: Â· poor communication and coordination across functions, Â· having too many decisions referred upward in the hierarchy, Â· a loss of clear responsibility for product or service delivery, and slow innovation in response to environmental changes. Â· One of the most serious disadvantages occurs when members of functional departments become overspecialized, develop self-centered, narrow viewpoints, and lose the total system perspective. Â· Failure to communicate and extend support across department lines is common in such situations. This often slows decision making because problems must be referred up the hierarchy for resolution.
Some of the advantages and disadvantages of product structure are that product structure enables companies to remain flexible in the business environment. Businesses are able …to remove or expand specific structures as necessary, but it can prevent companies from achieving broad based goals as each structured unit is operated on its own.
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advantages are decisions are taked by manager who are very close to the action who are taken a manager who have a direct contact with each other than other people whom are are… going to take which customer is likely to know which products is to be sucessfull
the organisational structure is that they are suitable for any kind of organisation
Some of the merits is that it motivates people to work harder andpay according to each employee's efforts. Demerits may include lackof motivation and loyalty by employees.
Organisational structure . Barclays is headed by Marcus Agius, the Group Chairman, who joined the Board on 1 September 2006 and succeeded Matthew Barrett as Chairman from 1… January 2007. Agius is also the senior executive Director of the BBC and was formerly Chairman of BAA PLC, Chairman of Lazard in London and a Deputy Chairman of Lazard LLC until 31 December 2006.. Reporting directly to the Group Chairman is John Varley, the Group Chief Executive, who is responsible for the strategic direction and planning of all Barclays operations. Varley was appointed to the role in September 2004 prior to which he served as Deputy Chief Executive (January-September 2004) and Group Finance Director (2000-2003).. The operating units of Barclays are grouped under two umbrellas; Investment Banking and Investment Management (IB&IM) and Global Retail and Commercial Banking (GRCB). IB&IM oversees three core operating units: Barclays Capital, Barclays Global Investors (BGI) and Barclays Wealth.. GRCB oversees multiple operating units. Principally it has responsibility for UK Retail Banking (UKRB), Barclays Commercial Bank (formally UK Business Banking), Barclaycard and International Retail and Commercial Banking (IR&CB).
I imagine the short answer is... you can get stuff done? Any organisation with more than one person will need a plan of hierachy in order that a single vision can be followed …and delivered to fruition and beyond. However, it would be prudent to allow for free feedback and conversation throughout the infrastructure. Whilst most businesses follow a kind of... cascading format (with upper management, middle... etc. with little room for the little people to have their say) and are successful, the most effective types are usually where a more liberal structure is encouraged. To allow for ideas and the organisations people to flourish individually and socially within and outside the business/organisation. It creates a positive feedback loop. The irony is that an infrastructure that allows for this type of freedom needs to be more rigorously managed than without it (hence why it's usually simpler to go with a 'you do what I pay you to do' ethos)
allow greater customer focus
One advantage to having a multi divisional business is the factthat the business can expand into different industries. Adisadvantage is the fact that one division can affect t…he profitsof the entire organization.
Â· A team can focus on single product or serviceÂ· more likely the division will receive the resources it needs from the companyÂ· allows the division to build a comm…on culture that contributes to higher morale and a better knowledge of the division's portfolioÂ· allows for flexibility and quick response to environmental changesenhances innovation and differential strategies
advantages: 1. simple design. 2. more strength compared with other structures. 3. economical in construction. 4. attractive and decorative appearance. disadvantages 1. the sh…ell structures r costly than part framed structure. 2. the formation of centering of shell is very high. 3. the cost of labour is high in shell structure.