AC 1.1 Advantages and Disadvantages of Two Types of Organisation Structures

Estimated reading: 4 minutes 2935 views

Functional Organisational Structure

The functional organisational structure focuses on appropriating people roles and duties in struct accordance to their skills, abilities and specialities. The employees are then grouped into units all aligned to defined functions. Managerial officers heading the divisional segments units then report to the top-most management. The wider purpose behind functional structures is to allow a high sense of organisational focus on critically crucial business units. A facility with an independent research and development (R&D) unit will have staffers in the department only focusing on R&D without appropriating efforts elsewhere. This factor can allow the organisation to effectively assess its research trajectory and value that investments on R&D bring to the facility. Top management have preference for the reporting of units independently with an aim of evaluating strong points and assessing weak areas. It is also a system of retaining specialists within a single output line as a mechanism of amplifying efficiency.

Advantages

The functional organizational structure carries its set of merits as evidenced by various success stories from the corporate world and increased scholarly attention on its relevance in today’s organisational landscape. The grouping of specialist staffers within a single line of functions highly enhances workplace efficiency. A communication intern reporting to a communication officer who is supervised by a departmental communication manager paves way for the realization of people fully indulged in their speciality. The absence of role duplication erases professional confusion and promotes a clear reporting line (Bromley, 2018). Functional structures have demonstrated their capacity to save unnecessary expenses and reduce organisational vote heads. Decrease in duplicated departments and interlinked reporting formats minimizes offices, a factor which works in creating manageable organisational expenses. People domiciled within functional areas that optimally utilize their professional strengths exhibit high-motivation levels directly leading to high productivity.

Disadvantages

The retention of people in static functional units can metamorphosize into professional detention paving way for the display of boredom. The repetition of tasks can diminish motivation and produce low-energy employees. An erratic handling of promotions in scenarios that have juniors rising above long-staying employees demoralizes workers and may encourage withdrawals and staff exits (Bromley, 2018). Employee turnovers form expensive realities for organisations on the basis of exit packages and new recruitment initiatives. Functional units can also detach employees from overall organisational strategies, goals and values creating employee dissonance. This factor can have employees whose work and motivation does not align with the wider objectives, an issue that can cost organisations. Territorial conflicts can arise especially in the case of non-performance by a single unit.

Matrix Organisational Structure

The matrix organisational structure accesses its image through collaboration among units, integration of employees within units and the presence of shared resource planning. Employees within a matrix organisational structure remain held within several chains of command and a single employee can report to more than one senior. The overall purpose behind this structure is to facilitate injection of employee dynamism and foster team-work.

Advantages

A matrix organisational structure advances substantive merits to institutions. The team-based project approach has facilitated integration of skills in a strategy that promotes workplace efficiency. A single project can absorb effective public communicators, reliable marketing professionals and charismatic leaders. The collaboration advantage has strongly enhanced resource planning, saving companies expenses and activating a possibly high return on investment (ROI) ratio (Turi and Sorooshian, 2019). Beyond creating dynamism through interdepartmental communication, the framework lays the foundation for problem detection across units. Senior executives can access the opportunity to diagnose challenges that occur within individual departments. Employees manage to internalize new range of skills and valuable experience from cross-unit interactions.

Disadvantages

Lack of managerial clarity rises as a fundamental disadvantage in matrix organisation structures. A unit manager may fail to differentiate their roles from those of project leaders paving way for the rise of confusions, and thus delays. Unclear roles is an issue extending to employees and the overall delay can hinder effective project implantation and amplify costs associated with single organisational tasks (Turi and Sorooshian, 2019). The function integration has, in some instances, led to a clogged decision-making process, a result that further complicates work systems. It is also possible to have matrix environments failing to accurately measure employee output.

Leave a Comment

Share this Doc

AC 1.1 Advantages and Disadvantages of Two Types of Organisation Structures

Or copy link

CONTENTS
Need Help? Chat with us!
Start a Conversation
Hi! Click one of our members below to chat on WhatsApp
We usually reply in a few minutes