Compare three traditional organizational designs.

Answer: When designing organizational structure, managers may choose traditional organizational design. In essence, these organizational structures tend to be more mechanized, usually including simple structure, functional structure and business department structure.

(1) simple structure

Simple structure is an organizational design with low degree of departmentalization, large management span, power mainly concentrated on one person and extremely low degree of formalization.

1 advantages. The advantages of simple structure include: quickness, flexibility, low maintenance cost and clear responsibility.

2 shortcomings. As the organization grows, the simple structure no longer applies: depending on someone is risky.

(2) Functional structure

Functional structure is an organizational design that combines professionals engaged in similar or related occupations. It can be considered as functional departmentalization applied in the whole organization.

1 advantages. Cost-saving advantages brought by specialization (economies of scale, minimizing duplication of personnel and equipment): employees engaged in similar work are grouped together.

2 shortcomings. Pursuing functional goals may lead managers to be unclear about what is best for the whole organization: different types of functional experts are isolated from each other, so they know little about what other work units are doing.

(3) division of labor structure

Division system is an organizational structure composed of relatively independent departments or business units. In this structure, each department has limited autonomy, and the department manager is responsible for the management of the department and its performance. Corporate headquarters usually plays the role of external supervisor, coordinating and controlling various business departments, and it often provides financial and legal support services.

⑦ Advantages. Department structure pays attention to results, and department managers are responsible for their products or services.

2 shortcomings. Repeatedly setting the structure, behavior and resources of business departments will increase costs and reduce efficiency.