“Outline the Main Ways in Which a Large Centralised Organisation Might Achieve a More Flexible Organised Structure. Using Examples, Discuss the Advantages and Disadvantages of Pursuing Greater Organisational Flexibility”

1089 WordsMar 19, 20125 Pages
“Outline the main ways in which a large centralised organisation might achieve a more flexible organised structure. Using examples, discuss the advantages and disadvantages of pursuing greater organisational flexibility” “The structures that organisations adopt are usually aligned to one of five generic organisational structures. These are the simple structure, the functional structure, the divisional structure, the holding company structure and the matrix structure. (Capon, C. (2009) the business environment. Chapter 4: Inside organisations. ) This essay will explain the various ways of how a large centralised organisation achieves a more flexible structure through de-centralisation. This essay will analyse the benefits and…show more content…
The matrix structure integrates two structures together, often geographical and multi product structures. For example, a company may have a department for a product A in Europe and for Product A in Asia. One of the advantages of the Matrix structure is the convenience of experts simplifying the sharing of knowledge between the goods. Another advantage of the matrix structure is intra-team communication, this allows ease of communication between the different functional product groups within the same organisation, and similarly there is less pressure on managers, quality monitoring is easier and skills are interchanged within departments of the same function thus improving efficiency. In the early 90’s the majority of IBM and the business press were convinced decentralisation would aid the company in terms of “flexibility, speed and entrepreneurial motivation”. They believed splitting up IBM into smaller companies would speed up processes and promote and enhance efficiency, which can be true of decentralisation. Lou Gerstner was appointed CEO of IBM in 1993. He was convinced IBM should remain centralised and to “use its unique size and capabilities to help customers integrate the diverse components of their information technology (IT) systems”. In the end IBM was loosened up but not completely decentralised. This worked tremendously

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