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Contemporary Organizational Designs

Team Based Structure

Entire Organization is made up of work groups or teams Self- Directed work teams

Very Flat Span of Control

Very Little Formalization

Team Advantages
Reduced barriers among departments Quicker response time Better morale and employees are more involved Teams having synergy results in increased output.

Team Disadvantages
Dual loyalties and conflict Time and resources spent on meetings Unplanned decentralization. No clear chain of command.

Matrix Structure

Dual Authority Structure in a Matrix Organization

An Example of a Matrix Organization

Prof Sunita Mehta VVISM

Horizontal Matrix Advantages

Adaptable to changing environment Development of both general and specialists management skills Expertise available to all divisions Enlarged tasks for employees

Horizontal Matrix Disadvantages

Dual chain of command High conflict between two sides of matrix Many meetings to coordinate activities Need for human relations training Power domination by one side of matrix

Boundaryless Structure
A structure that is not defined by or limited to artificial horizontal, vertical, or external boundaries; includes virtual and network types of organizations. Features: Removes internal and external boundaries Eliminates the chain of command Has limitless spans of control Uses empowered teams rather than departments Advantages: Highly flexible and responsive. Draws on talent wherever its found.. Disadvantages: Lack of control. Communication difficulties..

Network Structure

Network Structure
In some instances, independent or semi-independent organizations form loose affiliations in which they share resources, information, and data, and responsibility for joint projects. It is also called Modular Organization.

Network Approach Advantages

Global competitiveness Organization can concentrate on core competency Work force flexibility Reduced administrative overhead

Network Approach Disadvantages

No hands-on control Loss of part of the organization severely impacts remainder of organization Employee loyalty weakened

Virtual Organization
An organization that consists of a small core of full-time employees and that temporarily hires specialists to work on opportunities that arise.

Prof Sunita Mehta VVISM

Todays Organizational Design Challenges

Keeping Employees Connected
Widely dispersed and mobile employees

Building a Learning Organization Managing Global Structural Issues

Cultural implications of design elements

Prof Sunita Mehta VVISM

Organizational Designs (contd)

The Learning Organization
An organization that has developed the capacity to continuously learn, adapt, and change through the practice of knowledge management by employees. An organization that learns and encourages learning among its people. It promotes exchange of information between employees hence creating a more knowledgeable workforce. This produces a very flexible organization where people will accept and adapt to new ideas and changes through a shared vision.

Prof Sunita Mehta VVISM

Characteristics of a learning organization:

Organization has minimum structural and physical barriers Employees share information and collaborate on work activities An open team-based organization design that empowers employees Extensive and open information sharing Leadership that provides a shared vision of the organizations future, support and encouragement A strong culture of shared values, trust, openness, and a sense of community.

Benefits of Learning Organization

Maintaining levels of innovation and remaining competitive Being better placed to respond to external pressures Having the knowledge to better link resources to customer needs Improving quality of outputs at all levels Improving corporate image by becoming more people oriented Increasing the pace of change within the organization