CHAPTER-11-edited.docx - GROUP 1 – 1A8 CHAPTER 11 CONTEMPORARY ORGANIZATIONAL DESIGN I Organizations need to be lean flexible and innovative that is

CHAPTER-11-edited.docx - GROUP 1 – 1A8 CHAPTER 11...

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GROUP 1 – 1A8 CHAPTER 11: CONTEMPORARY ORGANIZATIONAL DESIGN I. Organizations need to be lean, flexible, and innovative; that is they need to be more organic. So managers are finding creative ways to structure and organize work. These contemporary design includes: Team Structure – a structure in which the entire organization is made up of work groups or teams. Advantages: Employees are more involved and empowered; reduced barriers among functional areas. Disadvantages: No clear chain of command; pressure on team performance. Matrix-Project Structure o Matrix assigns specialists from different functional departments/area to work on projects who then return to their areas when the projected is completed. It creates a dual chain of command. o Project is a structure in which employees continuously work on projects. It tend to be more flexible organizational designs, without the departmentalization or rigid organizational hierarchy that can slow down making decisions or taking action. o Advantages: Having flexibility and fluidity that helps the organization to respond to environmental changes. Disadvantages : The complexity of assigning people to projects, and the task and personality conflicts. Boundaryless Organization - kind of organization whose design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure. Two types of boundaries : (1) INTERNAL - the horizontal ones impose by the work specialization and departmentalization and the vertical ones that separate the employees into organizational levels and hierarchies (2) EXTERNAL - the boundaries that separate the organization from its customers, suppliers, and other stakeholders. N.B.: Although eliminating boundaries may seem strange, many of still today's most successful organizations are finding that they can operate most effectively by remaining flexible and unstructured.
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