Discuss Various Organisational Designs
Functional design
It divides employees into departments based on their work areas of expertise. Each department has an assigned leader who is well-versed in the job functions of each employee they supervise. Tesco in the UK uses functional structure (Gordon, 2022).
Matrix design
Team members submit to multiple managers at the same time in a matrix organizational structure. Having several supervisors allows for greater company interaction and faster project completion. When responding to functional and project managers, employees can learn skills outside of their team. While functional managers can assist in the resolution of job-specific issues, project managers can bring in knowledge or talents from other departments. BP, a multinational oil and gas company uses this design (Gordon,2022).
Divisional design
Employees are organized around a common product or geographical location. Divisional organizations have teams that specialize in a particular market or product line. The entire organization is divided by location so that strategies can be tailored to audiences from various markets. Top management determines company culture, but each division makes operational decisions independently. Unilever, a multinational consumer goods company uses divisional design (Gordon,2022).
Network design
This entails combining the efforts of two or more organizations in order to deliver a single product or service. Typically, a network organization will outsource the job to contract employees or vendors. The teams are made up of both full-time employees and freelance specialists, allowing in-house employees to spend the majority of their time concentrating on the work in which they specialize (Olmstead, 2022). Uber, a ride-hailing company uses network structure in UK
Flat design
There are few middle managers between employees and top managers which means that little or no supervision is required. This increases employee involvement and improves trust in the workplace (Olmstead, 2022). Skyscanner, a travel search engine company uses this design.
Gordon, J., 2022., Common Types of Organizational Design or Structure. Available at: https://thebusinessprofessor.com/en_US/management-leadership-organizational-behavior/common-types-of-organizational-design-or-structure.
Olmstead, L., 2022., 7 Types of Organizational Structures +Examples, Key Elements – Whatfix. Available at: https://whatfix.com/blog/organizational-structure/.
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