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Questions and Answers
What is the purpose of an organizational structure?
What is the purpose of an organizational structure?
To define how tasks are divided, resources are allocated, and departments are coordinated.
Which of the following is a type of organizational structure?
Which of the following is a type of organizational structure?
In a functional organization, departments are organized based on specialized functions.
In a functional organization, departments are organized based on specialized functions.
True
What is a characteristic of line and staff organization?
What is a characteristic of line and staff organization?
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What best describes a project organization?
What best describes a project organization?
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What is a disadvantage of the line organization structure?
What is a disadvantage of the line organization structure?
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In a functional organization, communication and collaboration may be limited due to __________.
In a functional organization, communication and collaboration may be limited due to __________.
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Study Notes
Organizing
- Organizational structure defines how tasks are divided, resources allocated, and departments are coordinated.
- Example: Apple uses a functional structure with separate departments for design, engineering, and marketing.
- An organizational structure is a framework determining roles, responsibilities, and tasks. It outlines hierarchy, reporting relationships, and communication channels.
- Clarifying roles and responsibilities promotes efficient coordination and control.
- Communication and collaboration are facilitated through the structure.
- Resource allocation and utilization are improved through specialisation.
- The structure supports accountability and performance evaluation by setting clear expectations and enabling assessment of individual and departmental performance.
Types of Organizational Structure
1. Line Organisation
- Simplest and oldest form, also known as scalar or military organisation.
- Clear and direct chain of command, authority flows vertically.
- Each employee reports to a single supervisor.
- Decision-making is centralised at the top of the hierarchy.
- Suitable for small organisations with a straightforward hierarchy.
- Communication is direct, and delays in decision-making can occur.
- No staff specialists, all persons on the same level are independent.
2. Functional Organisation
- Departments grouped based on specialized functions or tasks.
- Example: Separate marketing, finance, operations, and human resources departments.
- Functional manager has expertise in their particular area.
- Structure allows for efficient utilization of specialised skills.
- Clear career paths within each function.
- Departments can become inwardly focused, limiting communication and collaboration.
- Coordination across functions can be challenging.
3. Line and Staff Organisation
- Line positions focus on core operations, staff positions provide specialised support and guidance.
- Staff roles (HR, legal) provide expertise and advice to line management.
- Structure balances operational responsibilities with specialized support.
- Specialists are advisory, without power to command subordinates.
- Clarifying roles and coordination between lines and staff is important.
- Potential confusion and expense for small firms.
4. Project Organisation
- Temporary structure assembled for a specific project or initiative.
- Led by a project manager with authority over team members and resources.
- Focused approach to project management, with team members working together.
- Facilitates effective coordination, communication, and collaboration.
- Team is disbanded once project is completed.
- Useful for complex, time-limited projects requiring cross-functional collaboration.
5. Matrix Organisation
- Hybrid structure combining elements of functional and project structures.
- Employees report to two managers: functional and project.
- Functional manager oversees functional responsibilities.
- Project manager manages involvement in specific projects.
- Allows flexible resource allocation.
- Can be complex to manage due to multiple reporting relationships.
- Conflict can arise from competing priorities.
6. Committee Organisation
- Distributes decision-making and authority across committees or groups.
- Committees formed to address specific areas or functions within the organisation.
- Individuals from different departments and levels come together.
- Decisions made collectively through discussions and consensus.
- Diverse perspectives and expertise are considered.
- Limited scope, can't handle a large number of problems.
- Decision-making can be time-consuming.
7. Departmentation
- Grouping of activities into specialized units/departments.
- Enables specialisation, efficiency, and resource allocation.
- Streamlines organization functioning and goal achievement.
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