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Organizational Structure


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Hierarchical Structure
Advantages:
• Decision making starts at the top but can be passed down the lower levels.
• Often the vertical division are separated according to function
• Roles of staff are clear and well defined
• Clear for staff to understand how they can “move up the ladder” to be promoted
• Clear chain of command

Disadvantages:
• One way communication (top to bottom)
• Lack of coordination between department and division
• Tunnel vision problem
• Inflexible and may lead to change resistance

Matrix structure:
Advantages:
• Total communication between all members of the team
• Cross over ideas
• The focus is on the success of the project not department
• Well designed to the response of changing market and technology

Disadvantages:
• The design of total communication is only limited to the senior management
• Lack of control from the top
• Lack of formal bureaucracy may be resisted by managers
• Conflict......

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Approximate Word Count: 413
Approximate Pages: 2 (260 words per double-spaced page)

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