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  • Strategic Management: Ms. Ma. Kristina B. Pablo Instructor

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    This document discusses different types of organizational structures: 1. Functional structure divides the organization into main activities grouped into interdependent departments, with managers over each function. This is common and allows efficient use of specialists but can lack coordination. 2. Divisional structure divides the organization by regions or products. Each division acts independently. This fosters coordination but can duplicate resources and isolate specialists. 3. The document outlines advantages and disadvantages of functional and divisional structures, such as efficient use of specialists versus lack of creativity in functional, and excellent cross-department coordination versus costly duplication in divisional.

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    This document discusses different types of organizational structures: 1. Functional structure divides the organization into main activities grouped into interdependent departments, with managers over each function. This is common and allows efficient use of specialists but can lack coordination. 2. Divisional structure divides the organization by regions or products. Each division acts independently. This fosters coordination but can duplicate resources and isolate specialists. 3. The document outlines advantages and disadvantages of functional and divisional structures, such as efficient use of specialists versus lack of creativity in functional, and excellent cross-department coordination versus costly duplication in divisional.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    71 views21 pages

    Strategic Management: Ms. Ma. Kristina B. Pablo Instructor

    Uploaded by

    Kristina Pablo
    This document discusses different types of organizational structures: 1. Functional structure divides the organization into main activities grouped into interdependent departments, with managers over each function. This is common and allows efficient use of specialists but can lack coordination. 2. Divisional structure divides the organization by regions or products. Each division acts independently. This fosters coordination but can duplicate resources and isolate specialists. 3. The document outlines advantages and disadvantages of functional and divisional structures, such as efficient use of specialists versus lack of creativity in functional, and excellent cross-department coordination versus costly duplication in divisional.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 21

    Strategic

    Management
    Ms. Ma. Kristina B. Pablo
    Instructor
    STRUCTURE
    Is the allocation and
    control of work task
    LEGITIMACY Relationships based on the
    of acceptance of managerial power
    Management by subordinates and society
    AUTHORITY Max Weber
    Two Types of 1.Vertical
    Structure 2.Horizontal
     Vertical Structure of authority and responsibility where clear limits
    VERTICAL of financial authority exist.
     Horizontal Structure can be changed from time to time, to us suit
    HORIZONTAL the environment
     The basic vertical structure of an organization is relatively static
    Communicatio framework

    n, Leadership
    and decision-
    making Framework
    This is the most common structure. This
    Functional divides the organization up into its main
    Structure activities are grouped together into
    interdependent departments
    Charge of each function
    Manager , Senior manager
    1. Specialized resource are used efficiently
    2. Quality is enhanced by any specialist from the same
    functional area

    Advantages of 3. Opportunities exist for extensive division of labour

    Functional 4. A Career structure enables people to advance within


    their functional problem
    5. It is easier to manage specialist if they are grouped
    together, especially when the manager has the same
    experience
    6. It fosters communication between specialist and
    enhance the development of skill knowledge.
    7. It does not duplicate specialist resources
    Advantages of throughout the organization and promotes
    economies of scale
    Funktional
    8. It is suited to conditions which stress functional
    specialism , where the environment is stable, and
    when the technology is routine, requiring little
    interdependence between departments
    1. Inefficient co-ordination of functional
    department
    2. Responsibility for overall outcomes is unclear
    Disadvantages 3. Interdepartmental conflicts
    of Functional
    4. Little creativity and innovation
    5. Difficulties in identifying’ profitable and
    unprofitable products.
    is the one in which an organization’s division is on grounds of
    regions or products. Regional divisional structure followed by
    PepsiCo is another one of the best organizational structure examples.
    The regional divisions of PepsiCo include North America Beverages
    DIVISIONAL (NAB), Latin America (LA), Europe Sub-Saharan Africa (ESSA),
    STRUCTURE Quaker Foods North America and Asia, Middle East & North Africa
    (AMENA).
    1. It provides excellent co ordination across functional
    departments

    ADVANTAGES OF 2. Since departmental units are often small as well as self-


    contained, employees identify with the product or project
    DIVISIONALISATION rather than their own function.
    3. Since each’ division can , for example , react to customer
    requirements , it is well suited to changeable environments.
    DISADVANTAGES OF
    DIVISIONALISATION 1. THERE MAY BE A COSTLY DUPLICATION OF RESOURCES
    ACROSS DEPARTMENTS
    2. SPECIALIST MAY BECOME ISOLATED AND FAIL TO FURTH’ER
    THEIR SPECIALIST SKILL
    3. COMPETING’ DEMAND ON PEOPLE MAY CREATE STRESS
    4. COORDINATION ACROSS DIVISIONS IS DIFFICULT
    -too much’ conrol

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