Organizational structure and design - What are some common organizational designs?

5 important questions on Organizational structure and design - What are some common organizational designs?

What are the contemporary organization designs? Explain their strengths and weaknesses.

  • Team structure.
    - Strength: Employees are more involved and empowered. Reduced barriers among functional areas.
    - Weakness: No clear chain of command. Pressure on teams to perform.
  • Matrix-project structure.
    - Strength: Fluid and flexible design that can respons to environmental changes. Faster decision making.
    - Weakness: Complexity of assigning people to projects. Tasks and personality conflicts.
  • Boundaryless structure.
    - Strength: Highly flexible and responsive. Utilizes talent wherever it is found.
    - Weakness: Lack of control. Communication difficulties.

What is the matrix structure?

The matrix structure assigns specialists from different functional departments to work on projects led by a project manager. It creates a dual chain of command as employees have 2 managers; their functional area manager and their product or project manager.

What is the project structure?

In the project structure, employees continuously work on projects. It has no formal departments where employees return after completion of a project. All work in project structures is performed in teams of employees.
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What is a boundaryless organization?

A boundaryless structure is not defined, or limited to, boundaries imposed by a predefined structure.

What is team structure?

A team structure is one in which the entire organization is made up of work teams that do the organization's work. Employee empowerment is crucial because there is no line of managerial authority from top to bottom.

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