Models of organisational structure

• What is the framework that defines authority, roles, and responsibilities within an organization?

  Organizational structure
• What are the four types of organizational structures mentioned?

  Functional, product-based, regional, matrix
• What is a functional organizational structure?

  Divided into specialist departments like HRM
• What is an advantage of a functional organizational structure?

  Promotes specialization and expertise
• What is a potential issue with a functional organizational structure?

  Risk of a silo mentality among departments
• When is a functional organizational structure best used?

  In a stable industry with defined processes
• What characterizes a product-based organizational structure?

  Divided according to the products it produces
• What is an advantage of a product-based organizational structure?

  Encourages innovation and faster decision-making
• What is a disadvantage of a product-based organizational structure?

  Duplication of efforts across product teams
• When is a product-based organizational structure best used?

  When products are independent and diverse
• What defines a regional organizational structure?

  Divided based on geographic regions
• What is an advantage of a regional organizational structure?

  Allows for a localized approach to customer needs
• What is a disadvantage of a regional organizational structure?

  Duplication of efforts across regions
• When is a regional organizational structure best used?

  When there is significant regional variation
• What is a matrix organizational structure?

  Combines functional and product-based structures
• What is an advantage of a matrix organizational structure?

  Combines specialization with product focus
• What is a potential issue with a matrix organizational structure?

  Complexity in reporting relationships
• When is a matrix organizational structure best used?

  When innovation is required in a stable industry
• What are the advantages and disadvantages of functional organizational structures?

  Advantages:

  • Promotes specialization and expertise
  • Leads to higher job satisfaction and productivity

  
  

  Disadvantages:

  • Risk of silo mentality
  • Less flexibility in rapidly changing industries
• What are the advantages and disadvantages of product-based organizational structures?

  Advantages:

  • Clear product focus
  • Encourages innovation and faster decisions

  
  

  Disadvantages:

  • Duplication of efforts
  • Higher average unit costs
• What are the advantages and disadvantages of regional organizational structures?

  Advantages:

  • Localized approach to customer needs
  • Faster local decision-making

  
  

  Disadvantages:

  • Duplication of efforts
  • Higher average unit costs
• What are the advantages and disadvantages of matrix organizational structures?

  Advantages:

  • Combines specialization and product focus
  • Encourages innovation and faster decisions

  
  

  Disadvantages:

  • Complexity in reporting relationships
  • Potential for confusion and demotivation