*ADVANTAGES AND DISADVANTAGES OF EACH STRUCTURE

STRUCT URAL APPROA CH

ADVANTAGES - Efficient use of resources In depth skill specialization; - Top manager direction and control

DIASADVANTAGES - Poor communication across depts.; - Slow response to external changes;

Functional

- lagging innovation; - Task assignments consistent with expertise and training - High-quality technical problem solving - Clear career paths within functions - Decisions from top of hierarchy creating delay

- Fast response, flexible in unstable envt.; - concern for customer needs;

- Duplication of resources and efforts across divisions; - less technical depth; - Competition and poor coordination across divisions - Emphasis on divisional goals at expense of organizational goals

Divisional

- excellent coordination - Clear points of responsibility

- Expertise focused on specific customers, products, and regions - Greater ease in restructuring

- Efficient use of resources; - Increased flexibility and adaptability to changing envt and restructuring; - Better interdisciplinary cooperation; - expertise available to all divisions

- Frustration and confusion from dual chain of command; - High conflict between 2 sides; - Two-boss system is susceptible to power struggles. - Two-boss system can create task confusion and conflict in work priorities. - Team meetings are time consuming, more discussion than action Team may develop groupitis. - Increased costs due to adding team leers to structure.

Matrix

- Improved decision making. - Better customer service. - Better performance accountability. - Improved strategic management

- Reduced barriers among depts increased compromise; - shorter response time, quicker decisions; - better morale, enthusiasm from employee involvement - Eliminates difficulties with communication and decision making. - Greater sense of involvement and identification. - Improved quality and speed of decision making.

- Dual loyalties and conflict; - Conflicting loyalties among members. - Excessive time and resources spent on meetings;

Team

- Effective use of time depends on quality of interpersonal relations, group dynamics, and team management. - unplanned decentralization

- Can draw expertise worldwide; - highly flexible and responsive; - reduced overhead costs - Eliminates difficulties with communication and decision making. - Eliminates barriers between operating departments. - Improved morale. - Greater sense of involvement and identification. - Increased enthusiasm for work. - Improved quality and speed of decision making.

- Lack of control; - weak boundaries; - greater demands on managers; - weaker employee loyalty - Effective use of time depends on quality of interpersonal relations, group dynamics, and team management. - Conflicting loyalties among members. - Excessive time spent in meetings.

Virtual network