MGMT 3/5

Functional Structural Advantages

  • work done by highly skilled specialists
  • lowers costs through reduced duplication
  • communication and coordination problems are lessened

Functional Structural Disadvantages

  • Poor communication across functional departments
  • Slow response to external changes
  • produces employees with narrow experience

Divisional Structure Advantages

  • Fosters concern for customer needs
  • Produces employees with a broad set of expertise
  • Excellent coordination between departments

Divisional Structure Disadvantages

  • Duplication of resources across divisions
  • Poor communication between divisions
  • Less technical depth and specialization
  • Limited view of organizational goals by employees

Matrix Structure Advantages

  • more efficient use of resources than single hierarchy
  • Adaptability to changing environment
  • Development of both general and specialized management skills
  • Expertise available to all divisions
  • Enlarged tasks for employees

Matrix Structure Disadvantages

  • violates the unit of command
  • confusion from dual chain of command
  • high conflict between two sides of matrix (task conflict)
  • many meetings to coordinate activities
  • need for human relations training
  • power domination by one side of matrix

Team advantages

  • reduced barriers among departments
  • quicker decisions
  • better morale
  • reduced administrative overhead

Team Disadvantages

  • dual loyalties and conflict
  • time and resources spent on meetings
  • unplanned decentralization


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