The levels of responsibility and authority are likely to be precise and understandable. Women on Writing. A bureaucratic structure has both advantages and disadvantages. What Are the Disadvantages & Advantages of a Union in a Workplace? unionization) on the other. There are too many benefits of a flexible organization to list, but these are most of them. Perhaps the biggest advantage of a matrix structure is that is brings together highly skilled team members from different departments, allowing the organization to capitalize on the resources it already has rather than seeking expertise and recruiting project team members from outside of the organization. No, that's not right. Flexibility is considered to be a key advantage of an organisation that is based around project teams (matrix structure). CBSE CBSE (Arts) Class 12. A good manager knows how to bring people together who have differing talents and then to unite them under a single cause. One of the problems with an organization that is rigid and mechanistic is that it cannot adapt. Everything in Hierarchical Organisational Structure is going to be organized and stabilized and there is less likely to get authority and obligation disordered. Advantages and Disadvantages of Staff Organisation 3. In the contemporary world, a small business must be flexible. Name the type of organisation structure which promote flexibility and initiative - 2783251 1. Getting some experience in each of these structures is a good idea so you can experience them firsthand. They need to figure out ways in which they can use the old technology, which will refine their former business practices so that they can then regain their competitive edge. When you unite your team so that their skills complement each other, you have a flexible unit that can handle a diverse range of issues. Alternatively, this type of structure can hinder productivity. putting his employees into roles where their abilities are not effective and their weaknesses are magnified. Divisional Structure. March and Simon have stated that […] When you install flexible work schedules and you leverage the power of the internet to enable your employees to work remotely, you have fewer buildings to maintain. When technology comes along that is disruptive, companies that initially had an advantage find themselves at a disadvantage. Project-Based Organizational Structure. Whatever challenges that come along will strain the organization. 2. Instead, a flexible company will look for ways to find something that works more efficiently than what you already have. Alternatively, this type of structure can hinder productivity. voluntary or charitable, the number of people it employs and its physical resources. Proper Delegation of Authority 6. It’s best if the organisation is flexible in the number of people and the skills in … To save money and get up and running as soon as possible, a small business just starting out may adopt this model where it may have a few essential employees but no top manager or formal departments. How Do Organic Organizational Structures Affect External Hierarchical Organizational Structures. Developing a workplace flexibility strategy is an essential part in an organisation, because when such strategies are effective, it results in increased productivity, job satisfaction, an increase in employee well-being, and ultimately leads to higher profitability and success … Businesses across the nation implement them to improve working conditions and reduce operating costs associated with in-office employees. Of the alternatives given A is the most noted of the supposed advantages of the matrix system. One of the characteristics of a flexible organization is that it is prepared for uncertainty. Decentralization makes for democratic management and flexibility of operations. Fixed rules of intra-organization procedures and structures are set and usually written in a language, which leaves no discretion for interpretation. Lastly, employees in flexible organizations may have higher job satisfaction due to more learning opportunities and autonomy. Sometimes, a company would have to change their system or structure so it … Well done. The features are: 1. You will get to hold on to your best employees and enjoy increased productivity from them. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Textbook Solutions 11268. For example, a company could have a group working in information technology, another in marketing and another in finance.Each department has a manager or director who answers to an executive a level up in the hierarchy who may … This often means less management, less job specialization, a wider span of control and primary use of horizontal communication. Defined by four specific features including a clear hierarchy and a rigid division of labor, a bureaucracy can provide stability and security, while discouraging favoritism. Structure of an organisation which results from the organising process is the basic framework within which the decision-making behaviour of an executive takes place. As per our research, over 96% of employees like flexibility at the workplace. An organizational structure that works perfectly for all the business-as-usual work doesn’t always work for projects, and you have to manage within the environment in which you work. Clear Line of Authority 4. Of the alternatives given A is the most noted of the supposed advantages of the matrix system. Business Models & Organizational Structure. Essential components of a successful strategy include, but are not limited to, the following: 1. Hierarchy has a vertical chain of command with different levels of authority, for instance, between a superior and subordinate level in the company. Therefore the role of the project manager is very limited if he exists. No, that's not right. You can do this by encouraging your employees to find new ways of doing business that are better. Minimum Possible Managerial Levels 8. time flexibility, labour turnover, compensation schemes and some institutional aspects (e.g. Business studies. Each division is positioned as a separate brand such as Google, Calico, Nest, Access (Fiber) and others. When you enable your company to become adaptable, it is able to evolve with the times, and it will survive longer, becoming continually more prosperous. A functional organizational structure has a vertical and disconnected structure in which communication flows through the functional managers to the top management. The disadvantage includes higher costs associated with maintenance of such structures. To achieve organizational goals and objectives, individual work needs to be coordinated and managed. Which of the following is an advantage of a network structure? First and the most important advantage of this organizational structure type is the efficient project organization. These organizations make it easier for their employees to lead personal lives that are more fulfilling, while also enabling the employees to meet their work commitments. In such a situation, a rigid, mechanized structure would stifle the agility and responsiveness of staff. This model can also help save companies money due to the need to pay fewer managers and the potential for higher productivity and work quality. McDonald’s marketing mix (4P) integrates how the corporate structure provides support for strategies and tactics. A flexible structure is an informal type of organizational structure that puts less emphasis on departmentalization and a strong chain of command than a traditional bureaucratic structure does. Matrix organisation, also called grid organisation, is a hybrid structure combining two complementary structures namely, functional departmentation with pure project structure. Disadvantages of Hierarchical Organisational Structure. He will try to force square pegs through round holes. However, there is more flexibility in job roles with less emphasis on specialization. A project manager may oversee this temporary team who will communicate and work together and make most decisions on their own. Such a company should have measures in place, in the event of changes in technology, regulation, or even the economy. Workplace flexibility can enhance work-life balance for employees, leading to greater satisfaction and retention. An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. Well done. Organizational flexibility is all about adapting to expected and, Much more, to unexpected changes that may come. The majority of German companies are traditionally organized and focus on hierarchical structures, just like in the past. Most companies have a portfolio of strategic initiatives. Organizational structure How individual and team work within an organization are coordinated. When your management structure is flexible, you will get the most out of your workforce, depending on their individual talents. (ii) A line structure promotes fast decision making and flexibility. It creates a structure of unequal treatment. Workplace flexibility meets the needs of both the business and its workers. Eventually, a challenge will come along that's so massive that the organization may falter. It is an established pattern of relationships among the components of the organisation. Join now. A more-flexible organization will grow more quickly than a rigid organization, because it is always seeking processes and methods that work better than those it currently has. A. Small businesses today must be flexible, or they risk failure. Advantages and Disadvantages of Committee Organisation. Functional structure is a permanent feature of the matrix organisation and retains authority for the overall operation of … Such things as storms, tornadoes, and other natural disasters make it difficult for rigid organizations to adapt and maintain continuity. The most flexible organizations offer their employees a more diverse range of options. Flexibility and Continuity 3. If you’ve had a job, you likely worked in a functional organizational structure.The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. Flexibility in business means that you don’t live by the maxim, “If it ain’t broke, don’t fix it." Having eight years experience running all aspects of her small business, she is knowledgeable about the daily issues and decisions that business owners face. That is because the work of the entry-level workers is what allows the organization to operate properly. It also helps create bonds between them. Some other places featuring her business writing include JobHero, LoveToKnow, PocketSense, Chron and Study.com. The Advantages of Flexibility in an Organization. There are some aspects that have allowed flexibility to be put in place in the workplace: * The biggest asset to an organisation is the people who work there, therefore this can create competitive advantage through people. Flexible work arrangements are more than a trend—they’re a cost-efficient way of keeping a business running. In contrast to a traditional functional structure that has formal departments and several layers of management, an informal flexible structure organizes workers in the best way that will meet business needs. Four types of common organizational structures are implemented in the real world. The Disadvantages of Team-Based Organizational Structure, Culture IQ: 4 Types of Work Flexibility to Consider for Your Employees, SHRM: Workplace Flexibility Necessary for Business, Speaker Says, LinkedIn: The Importance of Being Flexible In Business, The Structure of a Boundaryless Organization, Strategic Flexibility, Rigidity, and Barriers to the Development of Management. Competitive advantage is a theory that seeks to address some of the criticisms of comparative advantage. Important Solutions 2834. The second level includes managers or team leaders, and the third level includes teams overseen by a corresponding manager or team leader. decentralized structure ability to enhance role clarity flexibility highly departmentalized structure ability to minimize organizational politics Reviewed by: Jayne Thompson, LL.B., LL.M. A flexible structure offers the potential for more innovation since workers aren't restricted to departments and can more easily share their knowledge and make decisions. You should seek to promote flexibility in your organization. A hierarchical organization is a structure where all the entities except the topmost are subordinate to another entity. people sign on white background image by T.Tulic from. What Is the Importance of the Inverted Pyramid in an Organization? An organization that is flexible will respond to changes by evolving. Join now. This is the simplest & the most prevalent form of organizational structure. Workplace flexibility can enhance work-life balance for employees, leading to greater satisfaction and retention. Flexibility in an organization also comes with some downsides to consider. A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Some of the advantages of a pure line organisation are: (i) A line structure tends to simplify and clarify responsibility, authority and accountability relationships. McDonald’s organizational structure establishes the arrangement or pattern of interactions among various business areas. They also reduce the amount of office supplies they use. Also, you won’t have to deal with a high turnover, which happens when employees aren’t satisfied with an organization, so you will not need to fill vacant positions as frequently, so you will save on hiring costs. 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