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Type of organizational design: Geographical departmentalization which involves
grouping activities on the basis of geography or territory
The advantage of this design is existence of Efficient Information Exchange
One of the advantages of implementing the matrix organizational structure in a
business is that it can lead to an efficient exchange of information. Departments work
closely together and communicate with each other frequently to solve issues. Efficient
lines of communication enhance productivity and allow for quick decision-making.
For example, in a matrix structure, individuals from the marketing, finance and
product departments may confer with one another to formulate strategies. The
specialized information exchange allows managers to respond quickly to the needs of
customers and the organization.
The disadvantage would Internal Complexity.
A disadvantage of the matrix structure is that it can result in internal complexity.
Some employees may become confused as to who their direct supervisor is. For
example, an employee may receive different directions concerning the same thing
from supervisors in different departments. The dual authority and communication
problems may cause division among employees and managers. Miscommunication
and ineffective managing can result in employee dissatisfaction and low morale.
Prolonged issues may cause an organization to experience high employee turnover.
2. Type of organizational design: Functional departmentalization which involves
organizing departments around essential input activities, such as production, sales,
and finance that are managerial or technological functions.
As with quick decision making, clustering people together according to professional
similarities also fosters communication and knowledge sharing between co-workers.
Instead of reliance on costly seminars and workshops, more experienced project team
members serve as mentors to colleagues with less experience. Effective application of
this knowledge results in a stronger, more productive project team.
The disadvantage of the mentioned design is Lack of Teamwork.
While specialized units within the functional structure often perform with a high level
of efficiency, they may have difficulty working well with other units. If a project calls
for several units to work together, units may become territorial and unwilling to
cooperate with each other. In essence, each unit may act in what it perceives to be its
own best interests instead of those of the organization as a whole. Infighting may
cause projects to fall behind schedule.
3. Type of organizational design: Product departmentalization which organizes
employees based on which product line or set of services they work with. Each
product line has a department of its own, and each department has specialists in all of
the functions needed to produce and sell that product, such as marketing,
manufacturing, accounting and human resources. The departments in this type of
company operate autonomously from each other and are often better at responding to
changing circumstances in a flexible way. For example, the salespeople can talk to the
design and manufacturing specialists in their own department to address customer

satisfaction issues rather than having to go outside the department. Smaller businesses
would use this type of structure only if they offer distinctly different products or
services. For instance, if your company provides both copywriting and printing, it
might make sense to operate these services as separate and autonomous departments.
The chief advantage of the divisional structure is that it focuses on results. Division
managers have full responsibility for a product or service. The divisional structure
also frees the headquarters staff from day-to-day operating details so that they can
focus on long-term and strategic planning.
The major disadvantage of the divisional structure is duplication of activities and
resources. Each division, for instance, may have a marketing research department.
Because of the duplication of functions, the organizations costs increase and
efficiency decreases.
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4. Type of organizational design: Process Departmentalization which involves separation
of the process into groups of smaller activities makes it easier to perform this process
by personnel.
The greatest advantage to this sort of departmentalization is that it allows for
specialization. The people in the department are focused on one task and the
managers can be expert in that task.
The greatest disadvantage of this type of departmentalization is that it isolates the
department from the other parts of the process. The department may become
excessively concerned with its own function instead of acting in ways that will benefit
the overall production process and firm.
5. Type of organizational design: Process Departmentalization which involves separation
of the process into groups of smaller activities makes it easier to perform this process
by personnel.
The advantage of this design is that it allows for specialization. The people in the
department are focused on one task and the managers can be expert in that task.
Whereas disadvantage would be, it separates the department from the other parts of
the process. The department may become excessively concerned with its own
function instead of acting in ways that will benefit the overall production process and
firm.

REFERENCES:

Robbins, Stephen P. and Coulter, Mary. Management. 7th Edition. Prentice Hall. Upper
Saddle River, New Jersey
Ford, R. C., & Randolph, W. A. (1992). Cross-functional structures: A review and
integration of matrix organization and project management. Journal of Management, 18,
267294.
Anand, N., & Daft, R. L. (2007). What is the right organization design? Organizational
Dynamics, 36(4), 329344.
Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (1995). The Boundaryless organization:
Breaking the chains of organizational structure. San Francisco: Jossey-Bass.

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