What are the relative advantages of different types of organizational structure?
There are different types of organizational structure, and each structure has different advantages. Different types of structure are functional structure, divisional structure, and matrix structures. The relative advantages of the functional structure are the separated business operations such as marketing, sales, human resource, and finance. The operational efficiency has emerged as a big advantage in this type of organizational structure. In the divisional structure, the bog relative advantage is the success of separated product line. Due to this structure, especially larger organizations, the product portfolio can be successful. At last, when combining the divisional and functional structure, the matrix structure comes into the life. The big advantage of matrix structure is the organizational integrity. The employee enhances the visibility of communication with both, divisional and functional managers, which improves the overall operations (Bernstein & Nohria, 1991, p. 5).
Which types are more effective for different goals?
To meet the goals in an effective and lucrative manner, the functional structure of the company seems pertinent. Possibly, each department in this structure can have separate vision, which can also be integrated with the organizational goals. The big advantage is the coordination of the different departments with each other for managing or maintaining the change. The effectiveness regarding the attainment of the goals comes through the integration of all the departments with each other. For Instance, if a firm aims to develop and low cost and high-quality products, all the departments such as supply chain, marketing, sales, production and human resources work separately to attain this goal as the whole (Bernstein & Nohria, 1991, p. 4).
Which types can adapt to change more easily?
The adaptation of the divisional structure is good to make the changes easily. The organization works in the different divisions to meet the goals and objectives, and accordingly, instead of making the changes as the whole, the changes in the division are quite effective, efficient and lucrative. Especially, when an organization intends to conduct the transformational change, it may have to face the obstacle to the new vision. Thus, working in the different divisions can reduce the impact, and it can help the management to adopt the change in one division to another. The change in the phases is quite good, and the divisional structure supports it (Bernstein & Nohria, 1991, p. 6).
What types have you experienced personally?
Personally, when working in the organization, I have faced or experienced the functional structure, being a part of the marketing department; I had to integrate with the sales, production, supply chain, administrative and the human resource department. Interestingly, the coordination and communication in the functional structure were in the limelight through the information technology tools. In this wonderful experience, I saw the effectiveness of the departments and learned how to interact and relate the different operations. The big advantage that I experienced was the managerial efficiency, as managers in the different department were working independently to meet the departmental goal. Due to the effective departmental leadership, the right paths, communication, fulfillment of the non-productive and overall efficiency can be improved, and this was the learning aspect for me (Bernstein & Nohria, 1991, p. 5).
For a company leader what are the challenges to implement a desired structural change?
For company leaders, there are several challenges when desiring the structural change in the company. In the structural change, the leaders may intend to revamp the company’s structure. The lack of urgency, under communicating the vision, and the changing trends of the external environment of the company are the biggest challenges, which are to be faced by the leaders. Interestingly the leaders, instead of declaring the victory regarding the change too early, may have to wait for a while. Thus, managing the time is also a big challenge in the structural change process. Sometimes, the change just happens, and sometimes, it seems quite long and costly, and these are the top challenges for the leaders. For an effective leader, removing all error is imperative to accomplish the success and contain long-term sustainability (Kotter, 2007, p. 3, 6, 8).
References
Bernstein, E. S., & Nohria, N. (1991). Note on organizational structure. Harvard Business review.
Kotter, J. P. (2007 ). Leading Change Why Transformation Efforts Fail. Harvard Business Review.
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