ORGANISATIONS AND BEHAVIOUR

Organisations & Behaviour



Organisations and Behaviour

Question 1

Functional Structure Comparison to Matrix Structure

Organisations often pursue matrix structures to develop like focus on factors pertaining to products, functions or geography. The culture prevalent in a matrix structure organisation is closely related to high degree of innovation and expertise. As the structure encourages close horizontal integration along with functional collaboration, it rests increased or equal authorisation of power with the project managers at the horizontal level; similar to that vested with the functional managers at the vertical level. The employees or workers are required to report to both (Daft, et.al. 2010, Pp.113).

This structure is most preferable in organisations with the following characteristics:

Medium sized organisations with moderate product lines and variations. It encourages efficient usage of shared and scarce resources and encourages flexibility to make maximum usage of the human resource and the associated equipment.

In entities where there are increased pressures pertaining to in-depth technical expertise at the functional business unit level along with a parallel focus on new product development at the divisional level; matrix structures permit a balance between these two essential structures.

The organisation faces high uncertainty in relation to its macro environment.

Functional Structures on the other hand aim to group various processes on the basis of commonality of functions, throughout the hierarchy. This approach allows consolidation of knowledge and skill-base in regards to individual functions and departments. The most feasible organisational characteristics to compliment this structure are as follows:

Where vertical hierarchical control is necessary in order to facilitate in-depth knowledge acquisition

High-efficiency prone organisations, where the focus on control and coordination via vertical communication paths is essential. Such organisations do not cater to product or service portfolios where horizontal coordination is necessary or beneficial.

The most critical focus of this structure is upon facilitation of economies of scale. For manufacturing units, this structure will result in reduction of duplication of activities and of waste.

In contrast to matrix structures, functional structures allow lower flexibility by offering slow response time to any changes in the macro environment and internal elements. Also, in contrast to the high coordination facilitation offered by the matrix approach, this structure may result in overloading of the vertical hierarchy, resulting in excessive piling of decisions. With an isolated top management, one may see innovation levels suffer due to insufficient communication (Daft, Marcic, 2010, Pp.242).

M1 Organisational Structure Suitable for LSST-Divisional Structure

A divisional structure allows divisions to be classified and organised according to their outputs. In contrast to the functional structure, where lack of communication and innovation results in an inflexible structure; the divisional structure allows individual product or service groups containing their respective support departments. Each department pertaining to separate courses and specialities maybe grouped together, resulting in smaller units and increased flexibility and response to potential opportunities and threats. As LSST is an educational institute where decentralized decision making is essential in order to vest greater power to the professors and lecturers, divisional structure is recommended to help resolve issues at the unit levels instead of ...