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  1. Digital Communication - Line Codes
  2. 20 Advantages and Disadvantages of Outsourcing from Your Small Business - Small Business Trends
  3. 8 Types of Organisational Structures: their Advantages and Disadvantages
  4. Easy to Understand and Analyze

Managers must carefully consider whether or not a modular structure would be useful, either entirely or partially, for a given organization. Skip to main content. Organizational Structure. Search for:. Common Organizational Structures Functional Structure An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing.

Learning Objectives Explain the functional structure within the larger context of organizational structures in general. Key Takeaways Key Points A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.

Digital Communication - Line Codes

Functional departmentalization arguably allows for greater operational efficiency because employees with shared skills and knowledge are grouped together by function. A disadvantage of this type of structure is that the different functional groups may not communicate with one another, potentially decreasing flexibility and innovation.

A recent trend aimed at combating this disadvantage is the use of teams that cross traditional departmental lines. Key Terms silo : In business, a unit or department within which communication and collaboration occurs vertically, with limited cooperation outside the unit. Divisional Structure Divisional structures group various organizational functions into product or regional divisions.

Learning Objectives Describe the basic premise behind divisional structures within the general framework of organizational structure. Key Takeaways Key Points The divisional structure is a type of organizational structure that groups each organizational function into a division.

These divisions can correspond to either products or geographies. Each division contains all the necessary resources and functions within it to support that product line or geography for example, its own finance, IT, and marketing departments. In the multidivisional structure, the subsidiaries benefit from the use of the brand and capital of the parent company. Disadvantages of divisional structure can include operational inefficiencies from separating specialized function.

For the multidivisional structure, disadvantages can include increased accounting and taxes. Key Terms parent company : An entity that owns or controls another entity. Matrix Structure The matrix structure is a type of organizational structure in which individuals are grouped via two operational frames.

20 Advantages and Disadvantages of Outsourcing from Your Small Business - Small Business Trends

Learning Objectives Illustrate the way two different operational perspectives can be crossed in a matrix structure to organize a company. Key Takeaways Key Points The matrix structure is a type of organizational structure in which individuals are grouped simultaneously by two different operational perspectives. Matrix structures are inherently complex and versatile, making them more appropriate for large companies operating across different industries or geographic regions.

Proponents suggest that matrix management is more dynamic than functional management in that it allows team members to share information more readily across task boundaries; it also allows for specialization that can increase depth of knowledge. A disadvantage of the matrix structure is the increased complexity in the chain of command, which can lead to a higher manager-to-worker ratio and contribute to conflicting loyalties among employees. Key Terms matrix : A two-dimensional array.

Team-Based Structure The team structure is a newer, less hierarchical organizational structure in which individuals are grouped into teams. Learning Objectives Classify team-based structures within the larger context of the most common organizational structures. Key Takeaways Key Points The team structure in large organizations is a newer type of organizational structure. A team should be a group of workers, with complementary skills and synergistic efforts, all working toward a common goal.

An organization may have several teams that can change over time. Teams that include members from different functions are known as cross- functional teams. Although teams are characterized as less hierarchical, they typically still include a management structure or management team. One aspect of team-based structures likely to persist indefinitely is the integration of team cultures within an broader structure such as a functional structure with interspersed teams.

8 Types of Organisational Structures: their Advantages and Disadvantages

Key Terms synergistic : Cooperative, working together, interacting, mutually stimulating. Network Structure In the network structure, managers coordinate and control relationships with the firm that are both internal and external.

Drawing The Line On Educational Disadvantage - Adam Inder - TEDxUWA

Learning Objectives Identify the structural implications of a network-based organizational design. Key Takeaways Key Points The network structure is a newer type of organizational structure viewed as less hierarchical i. In a network structure, managers coordinate and control relationships that are both internal and external to the firm.

Open communication and reliable partners both internally and externally are key components of social networks.

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Proponents argue that the network structure is more agile than other structures. Because it is decentralized, a network organization has fewer tiers, a wider span of control, and a bottom-up flow of decision making and ideas. A disadvantage of the network structure is that this more fluid structure can lead to more complex relations in the organization. Key Terms network : Any interconnected group or system.

Modular Structure In the modular structure, an organization focuses on developing specialized and relatively autonomous strategic business units.

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  • Learning Objectives Define the nature and value of a modular structure in an organizational framework. Key Takeaways Key Points The modular structure divides the business into small, tightly knit strategic business units SBUs ,which focus on specific elements of the organizational process. Interdependencies between modules tends to be weak; however, flexibility is extremely high. An advantage of the modular structure is that loosely coupled structures enable organizations to be more flexible and restructure more easily.

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    Increased internalization and more tightly coupled structures can produce better communication and intellectual property gains. As a result, some argue that the modularity of a firm should be limited to the extent the flexibility it affords results in gains. Various degrees of modularity are possible; however, a business must be consistent in the degree of modularity it employs. In many ways, an online bank is only as good as your — or their — internet connection. While some banks offer a phone number for customer service, it might be overwhelmed if online access is down.

    With a real bank, you can always find someone to talk to in the branch.

    Easy to Understand and Analyze

    If a website suddenly folds up, what will happen to your money? Online banks might be able to transfer money between accounts or pay bills, but you might be more comfortable with an international, bricks-and-mortar bank if you have complex transactions. Worldwide, business-oriented banks like Chase have global transaction capabilities, such as the ability to send payments to more than 35 different currencies worldwide, that online banks might not be able to muster.

    Over time, you can develop a relationship with a personal banker if you visit a traditional bricks-and-mortar location. It might seem counterintuitive that a bank, whose purpose is to attract assets, makes it hard for customers to make deposits, but that can be true in the case of some online banks. It is in the form of a rectangular pulse. According to the Einstein-Wiener-Khintchine theorem, if the auto correlation function or power spectral density of a random process is known, the other can be found exactly.

    Hence, we get the equation for Power Spectral Density.


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