Organisational structure & design - What are some common organizational designs?

3 important questions on Organisational structure & design - What are some common organizational designs?

Traditional vs. contemporary organizational designs.

Simple, funtional and divisional are traditional designs

Team, Matrix-project, boundaryless and learning structures are contemporary designs

What is a functional structure?

This is an organizational design that groups similar or related activities together like fucntional departmentalization but for the whole organization. The biggest advantage is the work specialisation, people are satisfied because they can talk the same language as their peers. The disadvantage of this structure is that the company loses sight sometims of the best intersts in the pursuit of functional goals.

What is the divisional structure?

An organizational structure made up of several business units or divisions. Each divisions has limited autonomy because they have a division manager. The biggest advantage is that it focuses on results. Sometimes duplication of activities.

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