Organizational structure is the arrangement of departments and units in an organization into a unified whole, with clear task and authority relationships, in order to create a favorable internal environment for work. the work of each individual and each department towards achieving the common goal
Organized by function and duty
- Advantage
* High operational efficiency.
* Promote the advantages of specialization.
* Simplify specialist training.
* Pay more attention to professional standards and employee conduct.
- Defect
* Conflicts between functional units.
* Functional officers often value their fields.
* Lack of coordination between functional departments.
* Overspecialization.
* Limited staff development
* Responsibility is difficult to determine
Organized by product
- Advantage
* Easy accountability
* Coordinate actions between departments more effectively.
* Create better capabilities for the development of general managers.
* Business proposals are easier to understand.
* Customers will pay more attention when making decisions
- Defect
* Competition for resources among production managers.
* Develop few specialized managers.
* Certain goals and strategies may be overlooked.
Organizational model based on operating area
- Advantage
* Set goals and action plans suitable for specific markets.
* Coordinate the actions of functional departments and direct these activities to specific markets.
* Favorable general manager training.
* Reduce local operations.
- Defect
* Difficult to maintain practical operations on a large scale
* There must be many managers
* Work may be duplicated.
* Difficulty maintaining focused decision making and control
Organize by customer
- Advantage
* Better customer understanding.
* Focus on customers when making decisions.
* Great effectiveness in directing sales efforts.
- Defect
* Competing for resources
* Lack of specialization
* Not suitable for areas of activity other than Marketing and sales.
Organized by strategic business units organized by market segments.
– Advantages: similar to product model.
– Disadvantages: Complexity and duplicate work
The mixed model combines many of the above models.
- Advantage
* Take advantage of the advantages and reduce the disadvantages of individual models.
* Handle extremely complex situations
* Good effects for large businesses.
* Specialization in organizational structure.
- Defect
* Organizational structures can be complex.
* Can lead to the formation of too small businesses.
* Increase the disadvantages of each type rather than the advantages
Matrix model
- Characteristic
* Combine two or more pure models
* Managers belonging to the same model are equal, reporting to the same level of decision-making authority in the field they are responsible for.
- Defect
* Violating the principle of "unity of command".
* Overcome disadvantages
* Each employee must thoroughly understand the authority of each manager.
* Top management must ensure that employees understand the above and that no manager overrides the authority of others
