Question

Discuss the impact that fear has on organizational performance and its employees

Answer 1

Functional: Under this form there are various functional areas like, marketing, accounting, research and development, etc. Such structure helps to evaluate individual performance, dedicated to a function. The fear of this type is lack of communication between the functional areas; therefore, it indulges non-cooperation between the work areas.

Divisional: This form is based on products, and operations. Suppose an individual project has separate division. Within that division all activities like, manufacturing, accounting, marketing, etc should be done. It helps to improve communication, because each division operates like a single unit. But it has a fear too---there might be a conflict between the divisions because of under/over performance; in such case each division works like an independent unit separated from the whole organization.

Matrix: This is the combination of functional and divisional forms. Suppose there is a project manager of a single project. Under his/her guidance divisions are created. Each division has divisional manager. Therefore, an individual working in a division has to give report to two persons –project manager, and divisional manager. Such form eliminates the disadvantages of functional and divisional forms. But creates a new fear, which is “confusion”. Employees often get confused because of the existence of two bosses.