Question

1. Think of organization that you work/worked for. Is it more centralized or decentralized? Is the level of centralization appropriate?

2. When and under what conditions might managers change from from functional to divisional structure
3. The divisional structure is often considered almost the opposite of a functional structure. Do you agree? Briefly explain the major differences in these two approaches to departmentalization.
4. What are advantages and disadvantages of matrix structure?

Answer 1

The level of centralization or decentralization in an organization depends on its structure and goals. Managers might change from a functional structure to a divisional structure under specific conditions. The divisional structure and functional structure are different approaches to departmentalization. The matrix structure combines aspects of functional and divisional structures and has its own advantages and disadvantages.

Step-by-step explanation:

The level of centralization or decentralization in an organization can vary depending on its structure. A centralized organization has decision-making authority concentrated at the top, with little autonomy given to lower-level employees. On the other hand, a decentralized organization delegates decision-making authority to lower levels, allowing for more autonomy. Whether the level of centralization is appropriate depends on the specific organization and its goals.

Managers might change from a functional structure to a divisional structure under certain conditions, such as when the organization grows in size and complexity, or when there is a need for greater specialization and focus within different product lines or geographical regions.

The divisional structure and functional structure are two different approaches to departmentalization. While the functional structure groups employees based on their common skills and expertise to promote efficiency and specialization, the divisional structure groups employees based on products, services, or geographical regions to promote flexibility and focus on specific markets. They have different advantages and disadvantages, and can be appropriate in different situations.

The matrix structure is an organizational structure that combines aspects of both functional and divisional structures. It allows employees to have dual reporting relationships, where they report to both a functional manager and a project or product manager. This structure can provide benefits such as increased flexibility, improved communication, and better coordination. However, it can also lead to confusion, power struggles, and increased complexity.