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7/31/2019 Contemporary+Forms
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Contemporary Organizational Designs
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Team Based Structure
Characteristics:
Entire Organization is made up of work groups or teams
Self- Directed work teams
Very Flat Span of Control
Very Little Formalization
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Team Advantages
Reduced barriers among departments
Quicker response time
Better morale and employees are more involved
Teams having synergy results in increased output.
Team Disadvantages
Dual loyalties and conflict
Time and resources spent on meetings
Unplanned decentralization.
No clear chain of command.
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Matrix Structure
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Dual Authority Structure in a MatrixOrganization
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Prof Sunita Mehta VVISM
An Example of a Matrix Organization
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Horizontal Matrix Advantages
Adaptable to changing environment
Development of both general and specialists
management skills
Expertise available to all divisions Enlarged tasks for employees
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Horizontal Matrix Disadvantages
Dual chain of command
High conflict between two sides of matrix
Many meetings to coordinate activities
Need for human relations training Power domination by one side of matrix
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A structure that is not defined by or limited to artificialhorizontal, vertical, or external boundaries; includes virtual
and network types of organizations.
Features:Removes internal and external boundaries
Eliminates the chain of command
Has limitless spans of control
Uses empowered teams rather than
departments
Advantages:
Highly flexible and responsive. Draws on talent wherever its
found..
Disadvantages:
Lack of control. Communication difficulties..
Boundaryless Structure
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Network Structure
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Network StructureIn some instances, independent or semi-independent organizations
form loose affiliations in which they share resources, information,
and data, and responsibility for joint projects. It is also called
Modular Organization.
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Network Approach Advantages
Global competitiveness Organization can concentrate on core competency
Work force flexibility
Reduced administrative overhead
No hands-on control
Loss of part of the organization severely impactsremainder of organization
Employee loyalty weakened
Network Approach Disadvantages
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Prof Sunita Mehta VVISM
Virtual Organization
An organization that consists of a small core of full-timeemployees and that temporarily hires specialists to work onopportunities that arise.
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Prof Sunita Mehta VVISM
Todays Organizational Design
Challenges
Keeping Employees Connected
Widely dispersed and mobile employees
Building a Learning Organization
Managing Global Structural IssuesCultural implications of design elements
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Prof Sunita Mehta VVISM
Organizational Designs (contd)
The Learning Organization
An organization that has developed the capacity to
continuously learn, adapt, and change through the
practice of knowledge management by employees.
An organization that learns and encourages learning
among its people. It promotes exchange of
information between employees hence creating a
more knowledgeable workforce. This produces a very
flexible organization where people will accept and
adapt to new ideas and changes through a sharedvision.
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Characteristics of a learning organization:
Organization has minimum structural and physical barriers
Employees share information and collaborate on work
activities
An open team-based organization design that empowers
employees Extensive and open information sharing
Leadership that provides a shared vision of the organizations
future, support and encouragement
A strong culture of shared values, trust, openness, and a
sense of community.
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Benefits of Learning Organization Maintaining levels of innovation and remaining competitive
Being better placed to respond to external pressures
Having the knowledge to better link resources to customer
needs
Improving quality of outputs at all levels Improving corporate image by becoming more people
oriented
Increasing the pace of change within the organization