Tiêu đề 03 IO Psy - Organizational Structure and Systems.pdf ✅

PROS CONS Helps establish clear line of authority Clarifies employee roles and responsibilities Establishes a clear career path for employees which can in turn keep them motivated Allows employees to b in-depth specialists as they are more likely to have niche roles Slow decision-making due to complicated chains of command Disconnect between lower-levels and upper-levels Inconsistencies in communication due to vertical and horizontal levels between teams Restricted information due to its limited downward flow Functional Structure – team structure that groups people into different departments based on areas of expertise (formalized) ● Positions are no longer based on levels but rather functions where one is highly dependent on the other ○ Ex. HR Department → Recruitment Officer → CompenBen Officer → Payroll Officer ● Promotion occurs via job rotation and upskilling ● An organization can be hierarchical and functional at the same time depending on the problems an organization may have PROS CONS Allows employees to focus on their role rather than Can create silos (isolated communication) within an politics Encourages specialization Help teams and departments feel self-determined Is easily scalab;le in any sized company organization Hampers interdepartmental communication Obscures processes and strategies for different markets or products in a company DIVISIONAL STRUCTURE Divisional Structure – system in which the business is divided into segments by product, market or geographies ● Each division contains the necessary resources and functions needed to support the product line and geography ● M-form: multidivisional structure on which one company owns several subsidiaries ○ Ex. HYBE, YG Entertainment ● Failure of one daughter company does not threaten the existence of the others ○ Ex. Jollibee Food Corporation PROS CONS Easier to assign responsibility for actions and results Works well in markets where there is high competition as local managers can quickly respond to changes in local conditions ‘Tends to build faster responses to local market conditions Helps build culture that contributes both to higher morale and a better knowledge of the division’s portfolio Multiple divisions add more overhead costs to the organization When a number of functional areas are spread among many divisions, it might lead to inefficiencies With skills being compartmentalized by division, it can be difficult to transfer skills or best practices across the organization Since each division may have its own strategic goal, it might not always align with the overall company strategy 3 | @studywithky
CONTEMPORARY STRUCTURES MATRIX STRUCTURE Matrix Structure – there is dual / multiple managerial accountability and responsibility ● Has 2 chains of command: functional (permanent) and project manager (temporary) ● Costs less for the company since they’re not paying full benefits ● Ex. Mental Health clinics that tap on university professors to act as psychologists (internal matrix), outsourcing (external matrix) PROS CONS Helps eliminate traditional siloed communication barriers Improved decision making due to availability of 2 chains of command Allows employees to use their skills in different roles Better use of resources which leads to increased efficiency May result in confusion regarding roles, responsibilities, and priorities Conflict of power between the project manager and functional manager Blurred lines of accountability Large overhead costs due to employing several managers TEAM-BASED STRUCTURE Team-based Structure – several teams work toward a common goal while performing their own specialized tasks ● Encourages less hierarchy, allowing more flexibility ● Resemble multiple horizontal organizational structures ● Nature of job is multiple rather than 1 only ○ Ex. BPO Companies (goal: respond to calls about healthcare, concerns, etc), Naruto Ninja teams ● Promotion is limited within the team NETWORK STRUCTURE Network Structure – structure that involves multiple divisions in different locations (has no physical office) ● Has no physical office and structure is mainly on as need basis (temporary) ● Helps visualize both internal and external relationships between managers and top-level management ● Viewed as agiler than other structures due to it having less tires, more control, and a bottom flow of decision making ○ Less hierarchical compared to other structures ○ More decentralized and flexible ● Relies on open communication and reliable partners both internal and external ● Ex. Freelancers, Virtual Assistants, Graphic Artists PROS CONS Promotes healthy competition, innovation, and collaboration Allows organizations to adapt quickly to changes in their environment Smaller, streamlined teams help save costs and Large-scale tasks may be difficult to accomplish Network organizations may struggle with control over employees without immediate supervision Can create an environment where employees compete 4 | @studywithky