1. Identify and discuss some of the more significant trade-offs that a company f
ID: 356268 • Letter: 1
Question
1. Identify and discuss some of the more significant trade-offs that a company faces with each of these various organization designs. Please be specific. and discuss in list form as follows:
Simple Design Structure - Significant Trade-offs of this Design - (space)
Functional Design Structure - Significant Trade-offs of this Design - (space) etc....
__________ Design Structure - Significant Trade-offs of this Design - (space) etc....
__________ Design Structure - Significant Trade-offs of this Design - (space) etc....
2. Identify a business scenario where a specific structure you select might be a good fit. Also include in this response a comprehensive discussion why this scenario is a good fit? (Maximum points will given for responses that include a thorough explanation, incorporating significant business-related factors like entity alternatives, financing alternatives and issues, operational issues, etc.)
Explanation / Answer
1)A Simple Design Structure- Significant Trade-offs of this Design - 1) Additional work load- Huge dependency on the Business Owner for decision making creates an over load obstructs him from executing his own key responsibilities towards the organization. 2) No delegation (authority of decision making) - Delegation cannot be implemented due to unavailability of individual functional (domain) heads. 3)Slow decision making - Speed of decision making is slow which is not good from the perspective of organizational management.
B) Functional Design Structure - Significant Trade-offs of this Design - a) Limited skill development & unity among employees - Division of employees by functions (skills) does not provide a opportunity to employees to learn & communicate clearly outside their specific function b) Disputes - There is a possibility of disputes among functions over different targets, budgets & timeline
C) Multi Divisional Design Structure -based on different Product Groups & Geographic Locations Significant Trade-offs of this Design - a) Duplication (repetition) of efforts, activities ?& processes based on the dynamics of each division b) Unhealthy competition - amoung different divisions to achieve higher profits, revenue & early targets
D) Matrix Design Structure -(Special teams from different functions) Significant Trade-offs of this Design -
a) Confusion in employees due to two different reporting authorities (functional & project) b) Employees face heavy work load from both the functional & project teams resulting them to feel loose motivation
2) A Functional design structure is suitable for small-medium sized organization having standard (similar) products & services.
.e.g Note book manufacturing company has 2 different varieties of notebooks has divided the organization into different teams (functions) based on the skill sets of employees. This design is effective to divide the work based on similarities & hence divide that work in the form of different functions for better control & execution. Hence employees in specific function can learn well within the same function to execute their roles & responsibleness. This design provides better governance & control over the employee numbers are less in each function & Functional heads can represent their teams & facilitate from the organization.
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