2. The functional structure is an organizational structure that divides its operations into separate departments or … An effective centralization offers the following advantages… List of Disadvantages of a Flat Organizational Structure. So, we have already pointed out the advantages of a flat organizational structure. Let's take a look at the advantages and disadvantages of each so you know what you're up against when you join a new structure. Similarly, in a centralized government structure, the decision-making authority is concentrated at the top, and all other lower levels follow the directions coming from the top of the organization structure. Organizational Design and Structure (Advantages and Disadvantages) Each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals. Communication, collaboration and decision-making are enhanced or limited by the organizational structure. 1. Matrix organization for a small and large business: An outline, advantages, disadvantages, conclusion. Advantages and Disadvantages of the Matrix Organizational Structure Below are some merits and advantages of line organization or vertical organization. It can be easily define and explain to all staff. Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). It simply states who works for who. Advantages of Line Organization. Management Can Easily Lose Control As mentioned above, this structure is ideal for startups and small business where the number of employees is still manageable. 1. Advantages & Disadvantages of Different Organizational Structure Types. Simplicity. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Let us now take a look at its limitations. From the hierarchal organizational structure to flatter, less bureaucratic structures and the team-oriented matrix, all organizational structures have advantages and disadvantages in key areas. It is the simplest form of organization and very simple to understand and implement. In the following discussion, I have provided the advantages and disadvantages of the five. Every structure has certain challenges that must be met, but when these negatives are proactively approached, their impact to the business and each worker can be effectively minimized. 2013 1.  Individual Assignment 3 (OB) Dec. 28. Functional Organization : All of the companies define its organizational structure to determine the reporting relationships that will exist in the company. These flat organizational structure advantages and disadvantages show us that when it is implemented with a clear plan, it can be successful. Responsibility is fixed. Functional Organizational Structure In a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. The organization's strategy determines the organizational structure that will work best for a business at a … In choosing a company's organizational structure, management is searching for the one that will bring the company's moving parts together into a well-coordinated, efficient and effective unit. Organizations choose their organizational structure based on many factors like: size, its geographic location, the manner of delivering different products and services that they will offer. Advantages and disadvantages of functional structure. 1. Advantages of Centralization. Organizational Design and Structure (Advantages and Disadvantages) Each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals. 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