FUNCTIONAL DIVISIONS AND MATRIX STRUCTURE

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FUNCTIONAL, DIVISIONAL AND MATRIX STRUCTURE : 

FUNCTIONAL, DIVISIONAL AND MATRIX STRUCTURE

ORGANISATIONAL STRUCTURE : 

ORGANISATIONAL STRUCTURE An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.

Functional structure : 

Functional structure Employees within the functional divisions of an organization tend to perform a specialized set of tasks. E.g. The engineering department would be staffed only with engineers. Functional structures group together people using similar skills. . As a whole, a functional organization is, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost . But

Functional structure : 

Functional structure

Functional structure : 

Functional structure MERITS DEMERITS This leads to operational efficiencies within that group best suited as a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure not only beneficial for organization but also for employees faiths. lead to a lack of communication between the functional groups within an organization, making the organization slow and inflexible.

Divisional structure : 

Divisional structure It is also called a "product structure“. Divisional structures group together people who work on a similar product, work in the same geographical region, or serve the same customers. Divisions can be categorized from different points of view. geographical basis: (a US division and an EU division) B. product/service basis (different products for different customers: households or companies). Eg: an automobile company with a divisional structure might have one division for SUVs, another division for subcompact cars, and another division for sedans. Each division would have its own sales, engineering and marketing departments.

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Divisional structure

ADVANTEGES OF DIVISIONAL STRUCTURE : 

ADVANTEGES OF DIVISIONAL STRUCTURE Expertise focused on special products, customers, regions Better coordination across functions within divisions Better accountability for product or service delivery Easier to grow or shrink in size as conditions change

Matrix Structure : 

Matrix Structure Uses permanent cross functional teams to try to gain the advantages of both the functional and divisional approaches.

Advantages of Matrix Structures : 

Advantages of Matrix Structures Performance accountability rests with program, product, or project managers. Teams enable better communication and cooperation across functions. Teams make more decisions and solve more problems at their levels. Top managers spend more time on strategic issues. A cross-functional team brings together members from different functional departments.