As per our research, over 96% of employees like flexibility at the workplace. Fixed rules of intra-organization procedures and structures are set and usually written in a language, which leaves no discretion for interpretation. Rapid changes will occur- in technology and also in the economy - which means that only organizations that are flexible so that they can adapt to these changes will succeed, which will give them a massive advantage over more-rigid organizations. (ii) A line structure promotes fast decision making and flexibility. A clear customer need in a defined, significant target market It is trite to say that the essence of competitive advantage is a differentiated offer relative to competitors. How Do Organic Organizational Structures Affect External Hierarchical Organizational Structures. This is the simplest & the most prevalent form of organizational structure. An unpredictable, rapidly changing environment demands flexibility, adaptability and interdepartmental cooperation. It also helps create bonds between them. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. Such teamwork tends to be more productive than other work structures, while also costing much less to maintain. However, it barely allows flexibility, long-term-planning, and creativity, ending with stiffness and dictatorship in management. b) Standardization is the key concept that underlies the bureaucracy. Disadvantages of Hierarchical Organisational Structure. Log in. We live in an era of risk and instability. Decentralization makes for democratic management and flexibility of operations. Divisional Structure. In an hierarchical structure, members know to whom they report and who reports to them. Some of the advantages of a pure line organisation are: (i) A line structure tends to simplify and clarify responsibility, authority and accountability relationships. Well done. A flexible company will be willing to try new methods and processes, even when the old processes seem to work just fine. The divisional structure allows this type of culture to persist in a division. In matrix structure, an employee works as a team member and reports to two bosses. Deloitte: Unlocking the Flexible Organization: Organizational Design for an Uncertain Future, Performance Magazine: Improving Performance: Flexible Organizational Structures, Forbes: The 5 Types Of Organizational Structures: Part 2, 'Flatter' Organizations, HubSpot: 9 Types of Organizational Structure Every Company Should Consider. A project manager may oversee this temporary team who will communicate and work together and make most decisions on their own. The Advantages of Horizontal Organization. Join now. Workplace flexibility is a strategy that emphasizes being able and willing to adapt to changing circumstances when it comes to how work gets done. Because all resources of the project are dedicated to project tasks and assignments. The Advantages of Flexibility in an Organization. Secondary School. Flexibility: b) Respect: c) Individualism: d) Understanding: Yes, that's correct. That is because the work of the entry-level workers is what allows the organization to operate properly. The features are: 1. Name the type of organisation structure which promote flexibility and initiative - Business Studies - Exhibit 10.4 illustrates a staff or functional authority organisational structure. A flexible structure is an informal type of organizational structure that puts less emphasis on departmentalization and a strong chain of command than a traditional bureaucratic structure does. Flexible Organizational Structure. Businesses across the nation implement them to improve working conditions and reduce operating costs associated with in-office employees. Flexibility in an organization also comes with some downsides to consider. Women on Writing. All the employees know exactly what position they are in and also know what job they have to do. Many … Which of the following is an advantage of a network structure? Application of Ultimate Authority 5. Nicky is a business writer with nearly two decades of hands-on and publishing experience. Designers can instead build an organic, horizontal structure, which flattens management levels and decentralizes decision-making. In quick change conditions, flexibility is a competitive advantage. See also our section on initiative, problem solving and decision making as the skills are very similar. Business Models & Organizational Structure. Another use of a flexible structure would be a larger business that operates in multiple geographic areas. She's been published in several business publications, including The Employment Times, Web Hosting Sun and WOW! A wider span of control means managers may find it harder to monitor and manage workers as well as develop strong working relationships with them. The Disadvantages of Team-Based Organizational Structure, Culture IQ: 4 Types of Work Flexibility to Consider for Your Employees, SHRM: Workplace Flexibility Necessary for Business, Speaker Says, LinkedIn: The Importance of Being Flexible In Business, The Structure of a Boundaryless Organization, Strategic Flexibility, Rigidity, and Barriers to the Development of Management. This would be a boon to your employees, since it would benefit those who have families or other responsibilities. Small businesses today must be flexible, or they risk failure. Ashley Donohoe started writing professionally about business topics in 2010. First and the most important advantage of this organizational structure type is the efficient project organization. You should seek to promote flexibility in your organization. The second level includes managers or team leaders, and the third level includes teams overseen by a corresponding manager or team leader. The result is that they will become less productive, thereby making the organization less productive as a result. Flexible benefits tend to be something that potential employees are looking for right now, as it allows them to have more control over the issues that they have in their lives. Organizational structure defines the way in which the people and resources are organised and coordinated by the authority to achieve the organizational goals. A disadvantage of this organizational structure is that it has limited flexibility and responsiveness. When your management structure is flexible, you will get the most out of your workforce, depending on their individual talents. Advantages and Disadvantages of Staff Organisation 3. refers to how individual and team work within an organization are coordinated. Balancing Employee Needs With Organizational Demands for Performance. Workplace flexibility meets the needs of both the business and its workers. Defined by four specific features including a clear hierarchy and a rigid division of labor, a bureaucracy can provide stability and security, while discouraging favoritism. When you accommodate your employees' needs like this, you enable your employees to become more loyal to your company, so that it becomes easier for you to retain your best employees who might otherwise have left the company, had your company offered only a rigid schedule. Proper Emphasis on Staff 9. These businesses tend to have a wide span of control where a manager oversees many workers and where communication happens more often among workers than from management to employees. 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