Organizational Structures: Functional Divisional Matrix and Flat Models

Now, we want to think about organizational design versus position management. And you see in the graph or the chart that organizational design looks at the mission and the organizational structure. Position management looks at position descriptions.

They both affect the classification, which is the occupation and the grade of the position, plus other functions that are included, such as budget, recruitment, labor management relations, and employee relations. And so to understand more fully how decisions about organizational structure impact position design, let's look at some typical organizational structures. And so organizational structures that are typical in the federal government are to enable work direction, standardize production, optimize employee utilization, support managerial decision making, and create clear systems of communication and accountability.

There are functional structures. There are divisional structures. There are matrix structures and flat structures.

And so we're going to delve deep into those four structures so that you can better understand how they aid in accomplishing the mission of the organization. Let's look at the functional structure. The functional structure is an organization with few managers at the top, with work departmentalized according to the type or the function.

The advantages of a functional structure are that it facilitates in-depth knowledge and skill development, resulting in employees becoming specialists in their field. It increases operational efficiency and working speed of employees, thus improving productivity levels. It motivates employees to advance their careers within the functional units hierarchy, thereby retaining program expertise within the unit.

The disadvantages of a functional structure include leading to poor communication and coordination between and among other units, as functions are not accountable to each other. Greater focus on their own specialized duties and responsibilities, thereby ignoring other potentially impacted outside areas. More standardized processes and procedures may promote rigidity and inflexibility, thus making the functional organization less able to adapt to a changing environment.

All right, next, let's look at the divisional structure. The divisional structure is an organization divided into similarly structured divisions, offering the same products and services, but set up to service separate geographical areas. The advantages of a divisional structure include potential for greater autonomy and quicker decision-making within each semi-sovereign division.

Each division maintains responsibility for the outcomes of its particular product or service without having to consider competing interests. Allows for building a common culture and SD pre-corps that contribute to higher employee morale. The disadvantages of a divisional structure include promoting duplication of activities and thereby causing increased costs for these activities for the entire organization.

Potential for conflicts between and among the divisions concerning funding allocations, thereby leading to diminished cooperation within the entire organization. Facilitates the concentration of power and authority within the respective divisions and, as such, encourages managers to focus solely on their goals with less focus on the whole organization's programs, goals, and interests. The matrix structure.

The matrix structure is typically a composite of both the functional and divisional structures. It is designed to handle time-limited projects through the mutual sharing of knowledgeable employees from other organizations. The advantages of the matrix structure include efficient exchange of information, leading to quick identification and resolution of problems.

Immediate access to a wide range of seasoned technical skills and knowledge for addressing problems and developing solutions. Ongoing interaction by managers with team members facilitates decisions more in line with employee viewpoints. The disadvantages of the matrix structure include confusion among employees as to who their supervisor is and which work assignments take priority.

Dual authority and communication issues may cause division among employees and managers, further resulting in ineffective and sometimes confusing management of work operations. Lack of clear guidance and direction may facilitate employee dissatisfaction and low morale, thus causing a high turnover rate among the employees. The flat structure is an organization with few or no levels of middle management and with a staff typically reporting directly to executives.

The advantages of a flat structure include being the most cost-efficient with fewer layers of management overhead. Faster and more direct communication between employees and management. Decisions are quickly made with fewer layers of management to consult.

The disadvantages of a flat structure include a higher turnover rate among employees since fewer promotion opportunities exist within the organization, resulting in the loss of technical expertise. Likely to facilitate larger supervisor slash employee ratios, which is the span and control within each unit to an unmanageable size, thereby reducing the supervisor's ability to develop personal relationships with employees, which is critical in maintaining trust and work accountability. It dampens employees' motivation with limited career progression options, thereby affecting the quality of work produced as well as the achievement of organizational goals.

And so those are the four typical organizational structures.