Organisations Flashcards
All things Organisations (5 cards)
1
Q
Organizational Structure Types
A
- Functional
- Divisional (Can be decentralized)
- Decentralised
- Matrix
2
Q
Benefits of Functional Structure
A
- Departmental Specialization
- Accountability (Section responsibilities)
- Clarity of Role Distribution
- Cost reduction
3
Q
Drawbacks of Functional Structure
A
- Poor Communication leads to lack of focus
- Slow Coordination
- Hierarchy gaps
- Departmental Resistance to change
4
Q
Benefits of a Divisional Structure
A
- Better Localised Service
- Positive Competition
- More effective communication between firm and customer
5
Q
Disadvantages of a divisional Structure
A
- Local and Central Management Conflict
- Duplication of resources and functions
- Transfer Pricing issues
