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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