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Organizational Structure and Its Models Essay


The choice of organizational structure is critical for the functioning of an organization. Moreover, it can profoundly shape the experiences of workers who have to adapt to the performance standards that are set by the management. Therefore, business administrators should ensure that employees can best fulfill their talents and attain organizational goals. Overall, I would prefer to work in a functional organizational system because it enables a person to interact with different professionals and share ideas with others. In my view, this work environment fosters creativity and decision-making. In turn, it may not be easy for me to work in a matrix organization because of this type of structure because it can lead to role ambiguity and work stress. However, one should also remember that the efficiency of these models depends on the skills of business administrators and their understanding of the tasks that a company should do shortly. These are the main issues that should be examined in greater detail.

It should be mentioned that the divisional structure implies that a group of people with diverse skills can work on the creation of a certain product (Swayne, 2012, p. 338). For example, this approach is typical of automotive companies in which different divisions work on the design, manufacturing, and even marketing of various car models. Such an approach is adopted by various enterprises. The main advantage of this structure is that employees can take into account various organizational factors while taking decisions (Swayne, 2012, p. 338). Furthermore, they can develop the most optimal solutions to the problems that a company can face (Swayne, 2012, p. 338). In my view, the main advantage of a divisional structure is that it fosters creativity because employees can express diverse points of view. They can better respond to the changes in the external environment. This is one of the main aspects that can be identified.

In contrast, a functional organizational system implies that different departments are comprised of people who have relatively similar skills. For instance, in many companies, there are engineering departments, Research and Development (R&D) teams, or other groups that are engaged in a very specific activity. They do not usually interact with the representatives of other departments. The main problem is that the employees working in such companies do not see what other workers are doing or what kind of difficulties they have to overcome. This is why they have a very limited view of the activities within a company. Under such circumstances, it may be difficult for a person to display his/her best qualities because this person can work mostly on very narrow tasks. This is why I would prefer a divisional organizational system to other models.

Much attention should also be paid to the so-called matrix organizations. The main peculiarity of this approach is that employees with diverse skills can work on the creation of different products. It should be borne in mind that a single person can be a member of various production teams (Bateman & Snell, 2011). This approach has been adopted by various manufacturing companies (Bateman & Snell, 2011). The main problem is that an individual cannot easily get used to a work environment in which he/she can be accountable to several managers. Moreover, this person can have to work on different unrelated tasks. Under such circumstances, a person is more likely to struggle with stress. Sometimes, he/she may not meet the deadlines that are set by the executives. Such problems occur in those cases when different managers do not coordinate their efforts properly. This is one of the main pitfalls that should be avoided by business administrators.

Admittedly, these examples do not prove that some of organizational systems are entirely ineffective. This view of these models can be too simplistic. For example, a functional approach is particularly suitable when the activities of workers require in-depth expertise. Moreover, in some companies, various functional departments are practically independent of one another. Apart from that, a matrix organizational system can be applicable if business administrators can ensure effective allocation of duties and scheduling (Meredith & Shafer, 2010). They should make sure that an employee is not torn between two tasks (Meredith & Shafer, 2010). In many cases, the use of this organizational system can improve the use of labor force and resources. This is one of the issues that should be taken into account by managers.

On the whole, this discussion suggests that the performance of a company and the experiences of workers are dependent on the type of organizational system. The examples examined in this paper indicate that the divisional system can better foster creativity and decision-making. In turn, a functional approach is more suitable when different departments are relatively independent of one another. Matrix organizations can be more time-efficient and responsive to changes. The divisional approach seems to be most suitable because it can safeguard companies against various risks such as role ambiguity or poor exchange of information. This is the main advantage of this method.

Reference List

Bateman, T., & Snell, S. (2011). Management: Leading and collaborating in the competitive world. New York, NY: McGraw-Hill/Irwin.

Meredith, J., & Shafer, S. (2010). Operations management for MBAs. Hoboken, NJ: Wiley.

Swayne, L. (2012). Strategic Management of Health Care Organizations. New York, NY: John Wiley & Sons.

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IvyPanda. (2020, July 26). Organizational Structure and Its Models. Retrieved from https://ivypanda.com/essays/organizational-structure-and-its-models/

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IvyPanda. "Organizational Structure and Its Models." July 26, 2020. https://ivypanda.com/essays/organizational-structure-and-its-models/.

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IvyPanda. 2020. "Organizational Structure and Its Models." July 26, 2020. https://ivypanda.com/essays/organizational-structure-and-its-models/.

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IvyPanda. (2020) 'Organizational Structure and Its Models'. 26 July.

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