Question

5 different types of organizational forms: Functional form Divisional form Matrix form Parallel form Modular form Based on each definition and textbook examples discuss a pro & con of each form.

Answer 1

1. Functional form is the most common form of organization. The groups and departments are organised according to their roles and skills.

Advantages:

• Increased productivity

• Accountability

• Clarity

Disadvantages:

• Flow of information

• Collaboration

• Coordination

2. Divisional form of organization is practiced in larger companies that serve varied customers.

Advantages:

• They can operate by self without relying much on the organization

• High degree of specialization

Disadvantages:

• Too much autonomy

• Increased costs

3. A matrix organization represents the organization in a grid like structure or a matrix.

Advantages:

• Dual support

• More and better efficient use of resources

• Avoids miscommunication

• Flow is seamless

Disadvantages:

• Complex structure

• Ineffective management

• Most expensive

• Internal competition