Functional structures of organizations and their associated advantages and disadvantages and how divisional structures could solve problems associated with active structure organization.
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A functional organizational structure is a business structure that groups employees by specialization, skill, or related roles. It is based on levels of hierarchy that include different departments under the direction of designated leaders.
Advantages. of the functional form’s man advantage is the specialization of its functional workers. Professionals who begin their careers in research and development organizations, or manufacturing, or sales, and work their way up through career ladders in those functions become practiced and skilled at their area of competence.(Badavi & Molchanov, 2020) Manager’s job is to integrate the functions and ensure that they are harnessed to produce goods and services. Acquiring and retaining functional specialists is also a critical need. They facilitate economies of scale in the use of various specializations. Finally, the functional organization is simple in that there are clear assignments for each department so that accountability is easier to track.
Disadvantages. the functional form often tends to encourage empire building and protecting behavior in that active managers find it challenging to socialize to or support the objectives of their counterparts. Limitations between departments in a functional organization become challenging to penetrate, which can lead to bureaucracy. This can cause a lose in the sight of customers in a functional organization—employees are focused on their “jobs” rather than their customers. The functional form also creates barriers to coordination and communication among the available units as units develop their jargon and reward systems. Each active group tends to develop its sub-culture as well.
In contrast, the divisional organization structure is where the different jobs of an enterprise are grouped into departments. And each department is headed by a leader with a specialization in that particular department he is running- for example, the production department headed by an Engineer. One main advantage in this organization setup is that every department’s work is to support the customer. To address the problems of functional organization, the designated leaders ought to cooperate in their roles and focus on the customer rather than on the job.
Finally, there is no universally accepted organizational structure that is better than others. However, depending on the needs of the business, a blend of two or more of the known systems are usually applied as long as customers are satisfied and that cooperation between the units of the organization is achieved. In the new age of Information, organizations will come through the creativity of their leaders and how they perceive Businesses. Gareth Morgan, for example, gives a different perspective in Images of Organizations, in which he poses metaphors for thinking about organizations as a way of sharpening design thinking. Organizations, he suggests, can be considered machines, as living organisms, like brains, as cultures, as political systems, as psychic prisons, as foci of constant change, and as instruments of domination. How we perceive organizations clearly will shape our design decisions in them.
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