This is just a discussion post from my classmate. I just need to respond. Based
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Question
This is just a discussion post from my classmate. I just need to respond. Based off of what is written, please answer with a simple analysis of what's written. (example: Interesting post, I see that...)
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 – Trading accountability for flexibility.
Simple structure has the benefit of flexibility that encourages employees’ creativity and individualism but in return if employees are not specifically assigned to an item the accountability for the task could be lost.
Functional Design Structure – Trading timeliness for quality
Functional structure has a reputation for creating experts in the field that they are working in because each person is assigned to a specific job and that is where they focus their time and energy (n.d, 2018). As a result timeliness is often not the main priority during production because the product needs to go through each channel of professionals to get finished properly and correctly by each subject matter expert.
Multidivisional Design Structure – Quality for Timeliness
The multidivisional structure gives more power to the divisions to make decisions quickly (n,d 2018). Doing so provides a more responsive team and gives the opportunity to act fast and better serve customer needs. In return sometimes in the ability to act fast the quality of work is decreased or mistakes are made. Mistakes are more likely to be made when the decisions are not going through multiple chains and having multiple reviews.
Matrix Design Structure – Clarity for Growth opportunity
In a matrix division there is room for employees to grow and learn how to manage by being assigned to small projects and working their way up to bigger projects. But, with that there is often confusion as to who an employee answers to because they have a supervisor and sometimes multiple project managers. The structure is great for growth and training managers but the employees need a firm understanding of who to go to and when.
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?
Multidivisional Design Structure
A business that would benefit from this type of structure would be a research facility. Inside research facilities, specifically the U.S. Naval Research Laboratory, there are many divisions under one umbrella authority (The director of research). Divisions are divided up by area of research for example; chemistry, space sciences, tactical electronic warfare, marine biology ect.(NRL, 2018) Each division is given authority over their processes. Structuring the organization this way allows for quick response to customers and sponsors in the research community. Each division is able to respond to their customers’ needs without having to trickle through tedious release processes. Having this structure at the U.S. Naval Research Laboratory saves the governments money by wasting less time on multiple levels and pushing information out where it needs to go in a timely manner.
Explanation / Answer
Simple Design Structure:
It is simple to understand by the employees as well as other stakeholders. It provides trading accountability plus flexibility to the business organization.
It encourages employee’s creativity, individualism and innovation at the workplace. In this important thing is role clarity otherwise accountability for the task might be lost in case of any emergency or big goals to be achieved by the organization.
Functional Design Structure:
When an organization will be classified among various functions like human resource management, operations, finance, marketing and research etc. then it called a functional structure which will be again easy to understand.
Functional structure has a reputation for creating experts in the field that they are working in because each person is assigned to a specific job role where they will achieve mastery.
Multidivisional Design Structure:
In this structure, the divisions will have more power to make decisions quickly related to various functional actives of each product category they will be looking so far. It facilitates more customer focus business offerings as well as a good brand name. There will be a greater chance of operational complexity might be arise due to various product segment and divisions. It will adopt various channels to distribute the product as a result channel conflict might be arising.
Matrix Design Structure:
It promotes the Clarity for Growth opportunity to the stakeholders associated with value chain of the organization. In this employees can adopt themselves to grow and learn. People will have to work on various types of project which will be differ in terms of scope and work so a diversified learning will be inherited with the employees. Sometimes employees will have chaos and confusion to whose answers will be given as they will have to report their original department as well as to other project managers.
I am choosing the FMCG sector where it will be better to adopt a Multidivisional Design Structure. As in FMCG, a large variety of goods are sold. So, a company can better look after each product division. For example:
Unilever will have great focus on both soaps and shampoo. Even, it develops its each product division like cosmetic, detergent, food stuffs, cookies etc. as brand segment. It is only possible due to this structure. By this structure, it will earn more market share, sales turnover, better focus on individual product, competitive advantage to the company as compared to competitors.
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