- Departmentalization by Business Function
- Advantages
- Ideally suited to a stable organizational environment
- Requires less internal coordination
- Facilitates the development of expertise
- Not dependent on interpersonal and managerial skills
- Disadvantages
- Response time to issues can be slow
- Bottlenecks occur due to sequential nature of the organizational decision making process
- Innovation may suffer
- Strong demand on senior managers to coordinate
- Conflict emerges from prioritization issues
- Departmentalization by Product
- Advantages
- Ideal for organizations experiencing fast change
- Clearly Defined Roles & Responsibilities
- Facilitates High Product Visibility
- Disadvantages
- Allocation of resources can become a political battle for priority
- Coordination of activities can decline
- Expertise may decline
- Departmentalization - Matrix
- Expertise can be realized across the organization to tackle organizational projects
- Project Teams can be drawn from various Functional Units
- Project Manager Appointed to Operate a Project
- Solid lines indicate line of command
- Dashed lines indicate shared authority between project manager and functional manager
- Advantages
- Allocates Expertise Across the Organization
- Greater Flexibility in Tackling Organizational Issues
- Realizes Top Management Expertise
- Develops Employee Skills
- Disadvantages
- Encourages Power Struggles
- Highly dependent on the interpersonal skills of staff
- Project manager may assume to much authority
- Project Manager may isolate other members
- Costly to implement
- Networks
- Internal Network
- Dynamic - Loosely Completed Network
- Vertical Network
- Virtual Network: "The virtual organization is a temporary network of companies that come together quickly to exploit fast-changing opportunities"
- Virtual
- Technology
- Opportunism
- Trust
- No Borders
- Excellence
Sheryl Tuchman, SPHR, SHRM-SCP
http://tools2succeed.com/
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