1. An effective centralization offers the following advantages… It is the simplest form of organization and very simple to understand and implement. It can be easily define and explain to all staff. List of Disadvantages of a Flat Organizational Structure. So, we have already pointed out the advantages of a flat organizational structure. Individual Assignment 3 (OB) Dec. 28. 2. In choosing a company's organizational structure, management is searching for the one that will bring the company's moving parts together into a well-coordinated, efficient and effective unit. 1. Advantages and Disadvantages of the Matrix Organizational Structure Functional Organizational Structure In a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. Simplicity. Organizational Design and Structure (Advantages and Disadvantages) Each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals. Let us now take a look at its limitations. Let's take a look at the advantages and disadvantages of each so you know what you're up against when you join a new structure. Similarly, in a centralized government structure, the decision-making authority is concentrated at the top, and all other lower levels follow the directions coming from the top of the organization structure. The organization's strategy determines the organizational structure that will work best for a business at a … Every structure has certain challenges that must be met, but when these negatives are proactively approached, their impact to the business and each worker can be effectively minimized. Functional Organization : All of the companies define its organizational structure to determine the reporting relationships that will exist in the company. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Organizational Design and Structure (Advantages and Disadvantages) Each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals. Advantages of Centralization. The functional structure is an organizational structure that divides its operations into separate departments or … Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). These flat organizational structure advantages and disadvantages show us that when it is implemented with a clear plan, it can be successful. Communication, collaboration and decision-making are enhanced or limited by the organizational structure. In the following discussion, I have provided the advantages and disadvantages of the five. Responsibility is fixed. Below are some merits and advantages of line organization or vertical organization. Organizations choose their organizational structure based on many factors like: size, its geographic location, the manner of delivering different products and services that they will offer. 2013 1. Advantages & Disadvantages of Different Organizational Structure Types. Advantages of Line Organization. Advantages and disadvantages of functional structure. Matrix organization for a small and large business: An outline, advantages, disadvantages, conclusion. 1. It simply states who works for who. 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