 TRADITIONAL

Simple Organizational Design

Functional Organizational Design
Divisional Organizational Design
 MODERN
Team Design
Matrix-Project Design
Boundary-less Design
 This design has few departments, wide span of
control, has a centralized authority figure and
has very little formalization of work; usually
used by companies that start out as
entrepreneurial ventures.
STRENGTHS
- Flexible

- Fast decision making results

- Clear accountability

WEAKNESSES
- Risk that overdependence with
overdependence on a single person.
- No longer appropriate as the company grows
 This design groups together similar or related
specialties. It is, generally, functional
departmentalization utilized and put into
practice in an entire organization.
STRENGTHS
- Cost saving advantages

- Management is facilitated because workers

with similar tasks are grouped together

WEAKNESSES
- Managers have little knowledge of other units’
functions.
 This design is made up of separate business
divisions of units, where the parent corporation
acts as overseer to coordinate and control the
different divisions and provide financial and
legal support services.
STRENGTHS
- Focused on results

- Managers are responsible for what happens to

their products and services.

WEAKNESSES
- Possible duplication of activities and resources

- Increased cost and reduced efficiency.

 In team design, the entire organization is made
up of work groups or teams.
STRENGTHS
- Empowerment of team members

- Reduced barriers among functional areas.

WEAKNESSES
- Clear chain of command

- Great pressure on teams to perform

 Matrix design where specialists from different
departments work on projects that are
supervised by a project manager.
 This design results in a double chain of
command wherein workers have two
managers– their functional area manager and
their project manager – who share authority
over them.
STRENGTHS
- Specialists are involved in the project

WEAKNESSES
- Task and personality conflicts
 Project design refers to an organizational
design where employees continuously work on
projects.
STRENGTHS
- Flexible designs

- Fast decision making

WEAKNESSES
- Complexity of assigning people to projects

- Tasks and personality conflicts

 This design is not defined or limited by
vertical, horizontal, and external boundaries.
 In other words, no hierarchical levels that
separate employees, no departmentalization,
and no boundaries that separate the
organization from customers, suppliers, and
other stakeholders.
 Virtual organization are often used in this
design
STRENGTHS
- Highly flexible and responsive

WEAKNESSES
- Lack of control

- Problems in communication
 Refers to assigning a new or additional task to
a subordinate

 May also refer to getting work done through

others by giving them the right to make
decisions and take action.
1. DEFINING THE GOAL CLEARLY
2. SELECTING THE PERSON WHO WILL BE
GIVEN THE TASK
3. ASSIGNING OF RESPONSIBILITY
4. ASKING THE PERSON ASSIGNED ABOUT
HIS OR HER PLANNED APPROACHES TO
ACCOMPLISH THE TASK OBJECTIVES
5. GRANTING THE ASSIGNED PERSON THE
AUTHORITY TO ACT
6. GIVING THE ASSIGNED PERSON
ENOUGH TIME AND RESOURCES TO DO THE
TASK, WHILE AT THE SAME TIME
EMPHASIZING HIS OR HER
ACCOUNTABILITY
7. CHECKING THE TASK
ACCOMPLISHMENT PROGRESS
8. MAKING SURE THAT THE TASK
OBJECTIVES HAVE BEEN ACCOMPLISHED
ADVANTAGES
- It prevents work overload among organization
managers.
- It provides opportunities for employee or
subordinates assigned to do the task to fully utilize
their talents on the job.
- It leads to empowerment of employees or
subordinates assigned to do the task, as it allows
them freedom to contribute ideas and to perform
their job in the best possible way.
- It increases job satisfaction among the assigned
employees or subordinates, that may lead to better
job performance.
DISADVANTAGES
- It may cause laziness among organization
managers.
- It may encourage too much dependence on
others.
- It may cause lack of control over priority
management problems.
- It may cause low self confidence among
managers.
 This type of organization are characterized by
hierarchical and reporting relationships among
groups or members.
 Formed by the company owner or manager to
accomplish the firms’ goals and objectives.
 EXAMPLES: A company, a school, a business,
a bank, a college
1. Accomplish goals that require cooperation or
collaboration among formal groups in the
organization.
2. Produce or bring about new and creative ideas
and solutions to company problems
3. Coordinate interdepartmental activities
4. Implement company rules/regulations and
policies
5. Orient/train new employees
 Consists of informal groups born out of the
need for social affiliation
 Exists because of friendship and common
interest
 Exists within the formal organization
 EXAMPLES:
1. Satisfy the members’ need for affiliation
2. Give the individual members a chance to
develop their self esteem
3. Give individual members an opportunity to
share their ideas
4. Lessen individual members’ insecurities
5. Provide a mechanism to solve members’
personal and interpersonal problems
ADVANTAGES
- Working systematically

- Established on and for the organization’s

objectives
- No duplication or overlapping of work

- Efficient coordination among departments

- Implementation of chain of control and

professional relationship
DISADVANTAGES
- Delay in feedback and action due to the
established chain of command.
- Ignores the psychological and social needs of
employees
- Emphasis on work only and overlooks the
human relations, talents, and creativity of
employees
ADVANTAGES
- Fast communication due to the absence of
standard operating procedures and protocols.
- Gives importance to the psychological and
social needs of employees
- Top managers can solicit feedback directly
from the employees on new policies and plans.
DISADVANTAGES
- More susceptible to rumor mongering

- There is no systematic workflow in place.

- Difficulty in implementing new rules and

policies
- More emphasis on the individual interest of
each employee rather than the overall goal of
the company.