You are on page 1of 4

Company structure

1. Complete the text with the words below. Some words are not used. specialization produce innovation efficiencies logistical flexibility volume cost disadvantages departmentalization communicate industries

Functional Structure Functional organization is a common type of organizational structure in which the organization is grouped based on __________(1) by function. The functional structure has associated advantages and __________( ). !n functional management" the organization is grouped by areas of specialism within different functional areas (such as !T" finance" operations" and mar#eting). $ome argue that functional __________(%) allows for greater operational __________(&) as employees with shared s#ills and #nowledge are grouped together by functions performed. ' disadvantage is that the different functional groups may not communicate" potentially decreasing __________(() and __________()). ' recent trend to combat this disadvantage is the use of teams that cross traditional departmental lines. Functional structures appear in a variety of organizations across __________(*). +owever" some argue that the functional structure in a large organization is best suited to organizations that __________(,) standardized goods and services at large __________(-) and low __________(1.). $maller organizations following a functional structure may share space to create natural opportunities for communication. 2. Complete the text below with the correct form of the words in brackets. Matrix Structure !n matrix management" the organization is grouped by both function and __________(produce). For example" in a large organization there might be a customer service department for product one as well as a customer service department for product two and three" and a __________(financial) department for the three products as well. The product by function structure forms a matrix" giving this organizational structure its name. /ecause the matrix structure is a __________(combine) of other structures" matrix structures can range from a matrix structure closer to the functional structure to one closer to the pro0ect structure. $upporters of matrix management suggest that it may allow team members to share _________(inform) more readily across tas# boundaries. 'nother advantage is that matrix structures allow for specialization that can increase __________(deep) of #nowledge and also allow individuals to be __________(choose) according to pro0ect needs. ' disadvantage of the matrix structure is the increased __________(complex) in the chain of command" with employees assigned to both functional and pro0ect managers. This can mean a higher manager to wor#er ratio" which can possibly increase costs" as well as possibly lead to __________(conflict) loyalties of employees.

3. Some of the paragraphs below have an extra word. Cross it out or mark the paragraph with a tick
if there is no extra word.

Flat Hierarchies Flat organization (also #nown as horizontal organization) refers to an organizational structure with the few or no levels of intervening management between staff and managers. The idea is that well1trained wor#ers will be more productive when they are more directly involved in the decision1ma#ing process" rather than closely supervised by many layers of management. $ome theorize that flat organizations are become more traditionally hierarchical when they begin to be geared towards productivity. The flat organization model promotes employee being involvement through a decentralized decision1ma#ing process. /y giving employees more increased responsibility and eliminating layers of middle management" comments and feedbac# reach all personnel involved in decisions more 2uic#ly. 3esponse to customer comment feedbac# becomes more rapid. $ince the interaction between wor#ers is more fre2uent" this organizational structure can generally depends upon a much more personal relationship between wor#ers and managers. Therefore the structure can be more time1consuming to build than a traditional hierarchical model.

Answers 1. Functional Structure Functional organization is a common type of organizational structure in which the organization is grouped based on specialization by function. The functional structure has associated advantages and disadvantages. !n functional management" the organization is grouped by areas of specialism within different functional areas (such as !T" finance" operations" and mar#eting). $ome argue that functional departmentalization allows for greater operational efficiencies as employees with shared s#ills and #nowledge are grouped together by functions performed. ' disadvantage is that the different functional groups may not communicate" potentially decreasing flexibility and innovation. ' recent trend to combat this disadvantage is the use of teams that cross traditional departmental lines. Functional structures appear in a variety of organizations across industries. +owever" some argue that the functional structure in a large organization is best suited to organizations that produce standardized goods and services at large volume and low cost. $maller organizations following a functional structure may share space to create natural opportunities for communication. 2. Matrix Structure !n matrix management" the organization is grouped by both function and product. For example" in a large organization there might be a customer service department for product one as well as a customer service department for product two and three" and a finance department for the three products as well. The product by function structure forms a matrix" giving this organizational structure its name. /ecause the matrix structure is a combination of other structures" matrix structures can range from a matrix structure closer to the functional structure to one closer to the pro0ect structure. $upporters of matrix management suggest that it may allow team members to share information more readily across tas# boundaries. 'nother advantage is that matrix structures allow for specialization that can increase depth of #nowledge and also allow individuals to be chosen according to pro0ect needs. ' disadvantage of the matrix structure is the increased complexity in the chain of command" with employees assigned to both functional and pro0ect managers. This can mean a higher manager to wor#er ratio" which can possibly increase costs" as well as possibly lead to conflicting loyalties of employees.

3. Flat Hierarchies Flat organization (also #nown as horizontal organization) refers to an organizational structure with the few or no levels of intervening management between staff and managers.

aThe idea is that well1trained wor#ers will be more productive when they are more directly
involved in the decision1ma#ing process" rather than closely supervised by many layers of management. $ome theorize that flat organizations are become more traditionally hierarchical when they begin to be geared towards productivity. The flat organization model promotes employee being involvement through a decentralized decision1ma#ing process. /y giving employees more increased responsibility and eliminating layers of middle management" comments and feedbac# reach all personnel involved in decisions more 2uic#ly. 3esponse to customer comment feedbac# becomes more rapid. $ince the interaction between wor#ers is more fre2uent" this organizational structure can generally depends upon a much more personal relationship between wor#ers and managers.

aTherefore the structure can be more time1consuming to build than a traditional hierarchical
model.