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Good morning everyone

 
So as the teacher explained to us last class, we know that organizational structures
are the way that the companies organize, divide and coordinate their activities, we´re
going to specifically talk about Composite structures, the advantages and
disadvantages of this structure by showing two examples of real organizations that
use this structure. 

The composite structures are basically the structures that already exist, under
specific conditions, those conditions are that the company is having an internal
growth, partial diversification and also that it is in a process of international
expansion.

So the composite structures does not need to use all the different organizational
structures at the same time, it can use elements of multiples and these elements can
be implemented in different levels in the company (as we see in here)

Specific other functions that don’t strictly relate to these aspects of the employee’s
work may be shown as an additional chart, superpose on the maid one, and entering
the individual boxes from the side. Lines are often used to detail the organizational
structure that governs these additional functions.

Composite organization structure, simply put, is basically a combination of all


three organization structures.

Within an organization, there could be certain projects that are being managed
following the Balanced Matrix Organization Structure while others could be
following the Projectized Organization Structure. A new project may popup
where it is beneficial for the team to follow the Functional Organization
Structure. So within the same organization we can see all structures being
used and this is by definition a Composite organization.

It should be noted here that in a functional organization all projects follow the
functional organization structure. Almost all modern organizations follow the
composite organization structure.

An organization may deliver one project in a Balanced Matrix way, while


another is being performed in a Functional way. They also have yet another
project that’s being done as Projectized.

A Functional organization needs a small building, and the organization has the
capability to construct the building itself. This would become a Composite
organization because the organization creates a separate project team to
complete this task.
Advantages:

U-Form:

 Efficiency only if there are a stability environnemental and stable technology


 Best specialists are at the top of each function.

M-Form: 

 Constructed as profit centers: it allows accountability and responsibility in


each center control on the same criteria.
 Strategy to top management and duplication of general direction

Matrix-Form

 Vertical coordination allows efficiency in each function


 Horizontal coordination allows effectiveness for each product or market
 Insist on collective performance more than on individual performance

General:
 The advantages of using these structures is that you can use multiple
structures at the same time and in different combinations, it is basically mixing
and matching anything else.
 It has more flexibility unlike the other specific structures.
 it can be organized based on the organization needs.
 Faster decisions-making and better coordination of the company’s activities.

Disadvantages:

U-Form:

 Over-centralization due to the General Direction or/and its staff

M-Form:

 Complex to manage when interdependency between divisions grows

Matrix-Form:

 Efficiency and effectiveness linked to the acceptance of multiple management


 If strong conflict, danger of overflow at direction level

General:

 Decision making may be one-sided, as the views of the lower ranks may not
to be taken into account.
 You need to have a good understanding of your organization, and how you
can put together the different structures for a composite organization, this may
take a while, and sometimes can fail.

Example: In this case, we have 2 examples about a linear structure that can be
identified in M or U form
 Churches sometimes have a linear model. In this case, there is a M-Form.

 This both small companies, has three departments and more that 1 hundred
employees. Occasionally, this type of companies have a U-Form

Sorry for the interruption but, at this moment It occurred to me a new example, my
family has a company of spare parts for construction machine, this company has
about 30 years working and now we have 2 warehouses in Bogota, the chief is my
grandpa but whit the pandemic, he put 2 chiefs, one in each company. Now, my
white mom, there are thinking to create another warehouse in Miami, and they take
the decision to create a new department of international functions, and this is
separate whit the other functions of the company, but it’s part of it. So, I think that is
a good example because they change his functional structure that was formal to this
composite to introduce this new department that is an independent project into our
company.

Conclusion:

Mixing some of the structures for a correct functionality of the company, could
generate them great results. However, you have to be responsible and have the
ability to choose the structures that can generate greater control and a better work
environment within the company.

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