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Strategic Management Short Notes

The document outlines four types of organizational structures: functional, multi-divisional, flat, and matrix. Each structure has its advantages and disadvantages, affecting communication, decision-making, and operational efficiency. Understanding these structures can help businesses improve organizational communication and overall effectiveness.

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felovijay
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9 views

Strategic Management Short Notes

The document outlines four types of organizational structures: functional, multi-divisional, flat, and matrix. Each structure has its advantages and disadvantages, affecting communication, decision-making, and operational efficiency. Understanding these structures can help businesses improve organizational communication and overall effectiveness.

Uploaded by

felovijay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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niches,

niches, there are a few


fewdifferences
Despite
there are tried. andbetween industries,
true management markets, and
structures
almost any business can implement to improve organisational
communication.clasify roles and responsibilities, improve decision
a more efficient and focused workforce
making,and create
These 4 types of organizational structures in management are
functional, multi- divisional flat, and matrix structures. Let's
break each of them down together.
1 functional structures
Functional structures are one of the most straightthat
Structures forward
and consequently, popular - types
can be found across industries
of organizational
Functional structures clivide Employees and departments
by their Expertise and responsibilities related to different
functional areas of your company, like marketing, sales,
resources, research and development, customer services, Etc.
human
functional structures are typically cost-Effective and
Support strong specialization, skill development, and Efficiency.
However, relying on functional Structures can create communication
a slow moving process
silos, make implementing strategy changes
and create intesplepartment confrets that can be challenging to
rectify.
2 Multi. Divisional Structures

Multi Divisional structures are commonly used by


by
large organisations that offer a wide range of products,services
and projects unlike functional structures that groups Employees by
Job function, multi-divisional structures organize the workforne
based on the products and projects they work on.
The advantages of a multi-divisional structure is that it
offers more autonomyhighly
divisions that are
and focused
flexibilityon
by achieving
creatingpositive
semi-autonomous
still a central
outcomes in their specific area. Although there is
command structure, multi-divisional structures give more freedom to
their separate divisions than functional structures.
This can streamline the pursuit of opportunities, response
to threats, and utilisation of Emerging advantages by eliminating
lengthy review and approval processes.
Howeves, multi- divisional structures usually Entail higher operating
Expenses compared to functional phalans. moreover the autonomy
Enjoyed by divisions within an organisation may somethines cause
disoguments relatedto messaging and prioritization of goals
3 flat structures
A fiat,or horizontal, management structure is relatively concept that
seeks to streamline communication, deasion making and Innovation
byEmpowering at Every level to create and champions ideas and initiation
to support tower operating costs- a majory
to drive growth. The reduction in bureaucracy created by flat structures
also major win for Expensensitive
orgn.
4 Matrix Structures

matrix structures also relyfoon a horizontal or flat hieraxby


but for different reasons. unlike flat structures, which typically
maintain Strong delineation between functional units of an bogo
mateix structures create cross-functional teams that team up to
Spearhead new projects and initiatives
Mateix structure's cross-departmental teams support
Strong communication,
Environment that promotesmaximum
creative flexibility,
and and
strategic a collaborative
problem solving.
matrix structures also allow orgn to maximize the impact of
their resources allocationsas by creating multi faceted teams capable
of taking on a range of challenges projects under a lead single
banner.
However,the complexity of matrix structures can
to increased administrative costs and a lack of darity
roles and responsibilities
regarding

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