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Introduction
Disadvantages
Due to above reasons they need to move in creative ways to structure and
organize works and to make their organizations more responsive to the needs of
customers, employees and other organizational constituents.
In this century, there are more favorable concepts that have being generated,
especially due to global village concept most of organizations have to revise
their organizational structures in order to achieve their overall objectives
through making employees’ job satisfaction. Therefore the contemporary
structure is used by organizations.
The flexible structural methods that job tasks are divided, grouped, and
coordinated for response to dynamic environmental factors.
• Team structure
• Matrix structure
• Project structure
• Boundary less organizations
• Network organizations
• Modular organizations
• Virtual organizations
• Learning organizations
In the team base structure, the entire organization is made up of work groups or
teams that perform the organization’s work. In the team base structure,
employee’s empowerment is crucial because there is no line of managerial
authority from top to bottom. Rather, employee teams are free to design work
in the way think is best. However, the teams are also held responsible for all
work activity and performance results in their respective areas.
Advantages
Easy Integration. Since it is the most popularly used form of team organization
it is easy to integrate. This is so, because every developer is experienced with
such a structure and understands their role within it.
Better Management, More Control. Since the entire team is physically within
the same building, communication is at its peak, since face-to-face
Greater productivity, in a team based structure there are various skills and
ability persons give their contribution produce a great output.
Disadvantages
Significant Overheads. Of course hiring a full team and owning or renting office
space with all that goes with it (i.e. electricity, computers) a studio is going to
run high overheads. In fact, overheads can amount to a quarter of the budget
on some productions, which is an incredibly high ratio of cost.
Arising conflicts, team based structure lead to opinion conflicts among team
members.
MATRIX STRUCTURE
The matrix structure of contemporary organizational structures assigns
specialist from different functional departments to work on one or more
projects.
On the other hand the two managers influence to the employee so the
employee should want to their works in correct way. By using matrix structure
can establish high control and greater supervision throughout the project
period. It may helps to increase project performance and effectiveness.
In matrix structure we can easily get high performance because there is skilled,
ability full and experienced employees come from different functional
departments.
Project Structure
Sabaragamuwa University of Sri Lanka 6
Department of Business Management
An organizational structure in which employees continuously work on projects is
a project structure. In a project structure has no formal departments to which
employee return at the completion of a project. Instead employees take their
specific skills, abilities and experience to other work project.
Project structure reduces job boredom, because they work different projects,
and less work specialization.
Although the matrix structure work well and continued to be effective structure
design choice for many organizations are using more advance types project
structure, in which employees continuously work on projects. Unlike the matrix
structure, a project structure has no formal departments to which employees
return at the completion of a project. Instead, employee take there specific
skills, abilities and experiences to other work projects. In addition, all work
Sabaragamuwa University of Sri Lanka 7
Department of Business Management
activities in project structures are performed by teams of employee who
become part of a project team because they have the appropriate work skills
and abilities.
Boundaryless Organizations
External - Barriers between the organization and the outside world (customers,
suppliers, other government entities, special interest groups, communities).
Customers are the most capable of identifying major problems in the
organization and are interested in solutions.
Instead of being organized around functions with many hierarchical levels, the
boundaryless organization is made up of self-managing and cross-functional
teams that are organized around core business processes that are critical for
satisfying customers such as new-product development or materials handling.
Network Organizations
Learning Organizations
With these empowered employees and teams, there’s little need for “bosses”
to direct and control.
Summary
We can identify there are three traditional organizational design such as simple,
functional, divisional. Organizations face more strength and weakness in these
structures. We can see there are many strength and weakness in these
structures. Nowadays they try to ignore that weakness and develop these
organizational designs as Team structure, Matrix structure, Project structure,
Boundaryless structure and Learning structure.
References