ADVANTAGES AND DISADVANTAGES OF THE STRUCTURE

OF AN ORGANIZATION

The four most common types of organizational structures are functional, divisional,
matrix, and flat. Many companies, especially very large ones, may use more than
one type of structure. For example, the sales division may use a functional structure,
while the research and development division uses a matrix structure. In addition,
companies may need to change their organizational structure over time, as the size
and business goals of the business change.

Functional Structure

In a functional structure, all of the decision-making occurs at the top levels of

management. This ensures that upper management has complete control over the
organization. It also provides a clear career trajectory for employees, from junior-
level positions, up to the top decision-making positions. A functional structure
provides stability and efficiency, especially in large and complex organizations,
because everyone uses similar processes. This also allows large businesses to take
advantage of economies of scale. However, this type of structure can also lead to
poor communication between departments, and situations where departments do not
work together and there is inter-departmental conflict. Customers may also become
frustrated(bực bội) by lack of cooperation if they have to work with more than one
department.

Divisional Structure

In a divisional structure( cấu trúc phòng ban), divisions are organized geographically
or by product line or marketing area and each division includes people from each
area of the business. For example, the European division of a company may handle
all of the firm's business with Europe and include its own accountant teams, sales
teams, research and development teams, and human resources teams – all of whom
report to the division head. This allows the company to respond quickly to customer
needs and helps more employees develop managerial skills. The disadvantage of
this structure is that there can be a lot of redundant( dư thừa) effort and competition
between divisions.

Matrix Structure

Organizations with a matrix structure have no chain of command. Employees work in

teams, which they organise and develop. Employees can change teams to work in
areas where they are needed or are interested in working. This works very well in
smaller organizations and in those businesses where resources and specialist
employees are scarce( nguồn lực và nhân viên chuyên môn khan hiếm ), as
everyone is kept busy and can be moved around to where they are most needed.
This structure increases employee skills and involvement but can lead to employee
confusion and frustration because lines of reporting are unclear. It can also be
difficult to set priorities when employees are moving between competing projects.

Flat Structure
The flat structure dispenses with( bỏ qua) the usual hierarchy of a functional
structure, decentralizing management and doing away with the need for middle
manager bosses(hệ thống phân cấp của cơ cấu chức năng, phân cấp quản lý và loại
bỏ sự cần thiết của các ông chủ quản lý cấp trung). Employees essentially act as
their own boss, giving them the ability to communicate directly with peers on ideas
and projects.

The advantage is a lot more freedom for employees, which requires a group of self-
starters who do not need managers checking up daily on their work. A flat structure
is common in âand startups where the focus is on product and services design, not
production or top-down management structures.

All four types of organizational structures in business can work well in the right
situations. While most companies will choose from the functional or divisional
approaches, a flat approach is becoming increasingly popular with modern
companies