FOR DISCUSSION Discuss the pros and cons of the functional form versus the divis
ID: 139772 • Letter: F
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FOR DISCUSSION Discuss the pros and cons of the functional form versus the divisional form. Explain the matrix form. What are pros and cons of the matrix form? Discuss what you believe are the most important responsibilities of a governing board. 1. 2. How can managers coordinate work among different departments within an HCO? Some HCOs do not design their organization structure exactly like one of the five forms discussed in this chapter. Instead, they begin with one of those structures and then modify it-sometimes creating a unique organization structure. Why might that be a good idea? 4. 5. 6. In a hospital, how does the medical staff complicate the traditional organization hierarchy?Explanation / Answer
Functional organization, as the name suggests, refers to that organization in which departments are created according to functions or specialization so that any matter related to the particular function is dealt by that particular functional department only and not by other departments. So for example, if in any company which has a functional organization in place and it has divided the department as IT department, finance department, marketing department, purchasing department and so on then any problem related to purchasing department will be handed over or solved by purchasing department only and not by any other department.
This departmentalization allows greater operational efficiency because the employees have their skills and knowledge to be shared within the group. The basis of this functional organization structure is an arrangement where a worker has different managers for different areas of the organization operation. Since this type of structure has many departments, it could also have several reporting structures as well.
1. Specialization :
Each department is created according to specialization there is that security that whichever task is assigned to any functional department it will be done in professional manner as it is done by the specialist so for example if there was no functional organization and some problem related to IT came in the company then the whole company would have been confused and disturbed regarding how and by whom the problem will be solved.
3.Separation of mental and physical functions:
It ensures the separation of mental and physical functions. This ensures better control of the working of the different sections.
A divisional structure is a manner of designing an organization so that it is split up into semi-autonomous units called divisions. While the divisions have control over their day-to-day operations, they still are answerable to a central authority that provides the overall strategy for the organization and coordinates its implementation among the divisions. Large corporations, especially large multinational corporations, utilize a divisional structure. For example, General Motors was one of the first companies to implement the divisional structure. This type of structure is also referred to as a multidivisional structure, or M-form, organization.
2. Matrix Form:
Organizations with hierarchical structures are easily graphed and defined. Often described as "tree structures," they are unambiguous and relatively permanent (or stable) organizational models, in which each element in the organization reports to a higher element and concludes with the CEO or Board of Directors at the top. A well-known feature of this model is that everyone in the organization reports to a single boss.
On the other hand, a matrix organizational structure is everything that a hierarchical structure is not. Some of the most striking differences are:
Advantages of Matrix Structures
Because matrix structures retain an organization's functional structure, they allow for the rapid creation of efficient large-scale, project structures that employ many members of the organization's functional structure but without disrupting or destroying the structure in the process.
Because the two organizations have different timelines – one relatively permanent, the other designed to expire with the completion of the project – the kinds of managerial discontent that can arise when a sub-unit in an organization "steals" employees to work on a project is muted. In ideal matrix structures, the two structures share resources equally without territorial struggles, because as each functional manager knows, the project structure will eventually dissolve. Other advantages of matrix structures noted in one of the seminal academic studies of these structures are:
Clear articulation of project objectives
Workable way of integrating project objectives with functional objectives
Efficient use of limited human resources
Rapid (often interdisciplinary) information flow through the project
Retention of expert teams through the life of the project
Rapid dispersion of team members back into the functional organization upon project completion without organizational disruption
Project management trains managers to become leaders in the functional organization
Project structures develop team spirit and high morale
Possibility of conflicts arising during the project carrying over to functional management
Disadvantages of Matrix Structures
The same seminal study of matrix organizations also notes their disadvantages:
Two-boss problems, leaving project members caught in the middle
Project members playing bosses against one another
Increases organizational complexity
Requirement for high degree of cooperation between functional and project management
Potential for conflicting management directives
Difficulty of establishing priorities suiting both functional and project management
Possible slowdowns in management reaction to events when two structures required for solution
Possible structural collapse in "crunch time"
Increase in management overhead costs
1. Specialization :
Each department is created according to specialization there is that security that whichever task is assigned to any functional department it will be done in professional manner as it is done by the specialist so for example if there was no functional organization and some problem related to IT came in the company then the whole company would have been confused and disturbed regarding how and by whom the problem will be solved.
1. Confusion: The operation of functional organisation is too complicated. Workers are supervised by a number of bosses. This results overlapping of authority and thus creates confusion in the organisation. 2.More efficiency:Functional organization leads to more efficiency and speed of work because a specialist who is the expert in his or her field is likely to do the task much efficiently and effectively than normal people. 2. Lack of coordination: Under this, the work is divided into parts and sub-parts. It poses difficulties in coordinating the functioning of different parts. Thus it is difficult to take quick decisions.
3.Separation of mental and physical functions:
It ensures the separation of mental and physical functions. This ensures better control of the working of the different sections.
3. The biggest disadvantage of functional organization is that since various departments are segregated on the basis of functions there is no scope of employees of one department helping or meeting the other department employees and hence in a way there are many companies in the form of departments within the company and each department is having separate goal instead of one common goal which can be harmful for the progress of the company in the long run. 4. Another benefit of the functional organization is that it enables management to segregate work according to functions and thus avoid any duplication of work and also management can allocate the work to the concerned department quickly due to functional specialization. 4. Another limitation of the functional organization is that there is increased chances of conflicts among department’s heads due to various reasons like ego, same position, budget and much more which in turn can hamper the progress of the company.Related Questions
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