Traditional Organizational Structures.docx

Traditional Organizational Structures.docx - Traditional...

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Traditional Organizational Structures Traditional Organizational Structures We’ll be looking at two types: 1. Functional Structures 2. Divisional Structures Functional Structures This type of business organization creates groups of people who have similar skills or perform similar tasks. Each group has people specializing in their area of expertise. Areas such as Human Resources, Sales, Marketing, Research & Development, etc. Each group functions properly, which makes the organization a success. Functional Structures Advantages Efficient use of resources. Workers’ assignments parallel their expertise. Technical problem solving. Training and skill development within functions. Clear career paths within functions. Disadvantages Difficulties in pinpointing responsibilities. For things like cost containment, product or service quality, timeliness, and innovation. Inefficient problem solving. Groups need to involve higher level managers to solve their problems. Instead groups should be working together to resolve issues. Functional Chimneys Problem Lack of communication, coordination, and problem solving across functions. (Read the attached document for this topic, and make notes of it.) Divisional Structures This type of business organization groups together people who… Work on the same product or service. Are located in the same geographical region. Serve similar customers. Each group has people specializing in their area of expertise. Therefore, each group functions properly, which makes the organization a success.
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