Homework

Question 1: The advantage and disadvantage of product and customer structure

Advantages Clear focus on market segment helps meet customers needs Positive competition between divisions Better control as each division can act as separate profit centre

Disadvantages Duplication of functions (e.g. different sales force for each division) Negative effects of competition Lack of central control over each separate division

Question 2: What is the bureaucracy?

Bureaucratic structures maintain strict hierarchies when it comes to people management. There are three types of bureaucratic structures: Pre-bureaucratic structures This type of organizations lacks the standards. Usually this type of structures can be observed in small scale, start-up companies. Usually the structure is centralized and there is only one key decision maker. The communication is done in one-on-one conversations. This type of structures is quite helpful for small organizations due to the fact that the founder has the full control over all the decisions and operations. Bureaucratic structures These structures have a certain degree of standardization. When the organizations grow complex and large, bureaucratic structures are required for management. These structures are quite suitable for tall organizations. Post-bureaucratic structures

The organizations that follow post- bureaucratic structures still inherit the strict hierarchies, but open to more modern ideas and methodologies. They follow techniques such as total quality management (TQM), culture management etc. Question 3: Describe matrix structures A Matrix structure organisation contains teams of people created from various sections of the business. These teams will be created for the purposes of a specific project and will be led by a project manager. Often the team will only exist for the duration of the project and matrix structures are usually deployed to develop new products and services. The advantages of a matrix include

Individuals can be chosen according to the needs of the project. The use of a project team which is dynamic and able to view problems in a different way as specialists have been brought together in a new environment. Project managers are directly responsible for completing the project within a specific deadline and budget.

Whilst the disadvantages include

A conflict of loyalty between line managers and project managers over the allocation of resources. If teams have a lot of independence can be difficult to monitor. Costs can be increased if more managers (ie project managers) are created through the use of project teams.