Question

In: Operations Management

Give examples of different organisational forms and explain how they work (e.g. functional, divisional, geographic, matrix,...

  • Give examples of different organisational forms and explain how they work (e.g. functional, divisional, geographic, matrix, network, vertical versus horizontal)

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Expert Solution

- functional organisation is a common type of organizational structure in which the organisation is divided into smaller groups based on specialized functional areas, such as IT, finance, and marketing.

A functional structure divides the organization into departments based on their function. each is headed by a functional manager and employees are grouped as per their role. functional managers have experience in the roles they supervise. this ensures that employees are using their skills effectively.

- divisional organisational structure splits employees into segments that correspond to particular products, sservices or markets. each division enjoys some degree of autonomy, complete with functional units such as operations, personnel, marketing, and research and development departmentss designed to focus on particular markets and product line.

each division contains all the necessary resources and functions within it to support that products line or geography.

- matrix organisational structure is a combination of two or more types of organizational structure. the matrix org. is the structure uniting tese other organizational structure to give them balance.

if an organization is working on producing two products or servixes at the same time, they can organize both and use that duallity to their advantage through the matrix org. structure.

- network organization structure is one that is connected together by informal networks and the demands of the task, rather than a formal organisational structure. the network org. prioritize its soft structure of relationships networks, teams and communities rather than reporting lines.

in network structure managers, coordinate and control relationships tthat are both internal and exxternal to the firms.

- the difference between horizontal and vertical org. is that vertical org. hae a top down management structure, while horizontal org. have a flat structure that provides greater employees autonomy.

in vertical org, collaboration can only occur during some formal occasion like a meeting, while in horizontal companies, employees havve the right and power to make a decision during the company's daily operation, therefore, collaboration tends to happen more organically.


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