organisational structure

Question 1

Key considerations in crafting structures

Answer 1

o Size, complexity, and industry dynamics.
o Larger organizations may prefer divisional structures; smaller ones opt for functional designs.
o Dynamic industries lean towards matrix structures, stable environments towards traditional setups.
o Strategic alignment with company goals, with innovation favouring a matrix structure.
o Technology influences choices; virtual structures demand advanced capabilities.
o Cultural values must harmonize for collaboration.

Question 2

Functional Structure

Answer 2

o Organized by specialized functions or departments.
o Narrow span of control, tall hierarchy, centralized decision-making.
o Advantages: Efficiency, expertise development; Disadvantages: Communication challenges, departmental silos.

Question 3

• Divisional Structure:

Answer 3

o Organized based on products, services, or regions.
o Varies in span of control, adaptable to different sizes.
o Advantages: Flexibility, faster response; Disadvantages: Resource duplication, coordination challenges.

Question 4

• Matrix Structure

Answer 4

o Combines functional and divisional elements.
o Wider span of control, flatter hierarchy.
o Enhances flexibility, cross-functional collaboration; Disadvantages: Power struggles, confusion.